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Canada Factoring and Security Agreement with Limited Recourse
Purchase accounts receivable from Canadian companies with this Canada 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 (buyer) for an immediate cash injection, at a discounted rate off the face value of the accounts.
The buyer has limited recourse against the seller for the amount of any receivable which is not paid or disputed by a customer, together with interest on unpaid accounts, up to a predetermined limit.
The buyer will also pay the seller any excess funds over and above the discount which are received by the buyer on customer accounts.
This Canada Factoring and Security Agreement with Limited Recourse is provided in MS Word format, and is fully editable to meet your needs.
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