Factoring and Security Agreement with Limited Recourse | Canada

Purchase accounts receivable from Canadian companies with this Factoring and Accounts Receivable Security Agreement with Limited Recourse.

• Under this Agreement (also called a debt purchase contract), a company needing cash for operations sells its accounts receivable to a factor for an immediate cash injection, at a discounted rate off the face value of the accounts.
• The factor has only limited recourse against the seller for the amount of any receivable which is not paid or disputed by a customer, plus interest on unpaid accounts, up to a predetermined limit.
• The factor will also pay the seller any excess funds received by the factor on customer accounts.
• This legal contract template is available in MS Word format.
• Governed by Canadian laws and intended for use only in Canada.