Factoring and Security Agreement with Full 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.

Document your security interest in a borrower's property with this Accounts Receivable Security Agreement template for Canadian lenders.

• The Agreement is part of the documentation that the borrower must provide to the lender, to secure a loan or line of credit.
• The Agreement grants the lender a security interest in all of the borrower's present and future personal property including inventory, equipment, accounts receivable and book debts.
• The form is governed by Canadian laws and can be used in any province or territory which has Personal Property Security Act legislation.
• Buy and download the template in MS Word format. Other formats available on request.

Factor the receivables of a business with this package of Assignment of Accounts Receivable forms.

Factoring is a financial process which gives a business an opportunity to inject needed cash into operations by selling its accounts receivable to a third party (the factor) for collection.

What is Included in the Package

• Assignment with Recourse template. With this form of assignment, the third party assignee has recourse to re-transfer back any customer account which is not paid in full within a specified time period, and the assignor agrees to buy them back for the amount of the unpaid balance.
• Assignment Without Recourse template. The assignor does not have the option to take back the accounts if they remain unpaid. The right to collect the unpaid accounts remains with the assignee.

Using the Forms

An assignment of your accounts receivable is a quick way to increase cash flow during slow periods. These are downloadable MS Word forms that you can use again and again. They are generic templates which can be used almost anywhere.