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    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.
    Download Type: Microsoft Word
    Last Updated: 14-September-2021
    SKU: 952