Are you in the business of purchasing accounts receivable from Canadian businesses? Use this ready-made template to prepare a Factoring and Accounts Receivable Security Agreement with Full Recourse, for use in Canada.

Under this Agreement (also called a debt purchase contract), a company needing cash for operations sells its accounts receivable to a factor (buyer) for an immediate cash injection, at a discounted rate off the face value of the accounts. The buyer has full recourse against the seller for the full amount of any receivable which is not paid or disputed by a customer, together with interest on unpaid accounts.

This Canadian Factoring and Security Agreement with Full Recourse is provided in MS Word format, and is fully editable to meet your needs.