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Factoring Agreement


A factoring agreement is used to finance a business. Under a factoring contract, the factoring company will temporarily purchase certain business assets and provide the business owner some money that they can use to fund and finance the business. The company and the factor will enter into a factoring agreement in which the factor purchases the company’s accounts receivables, collects on the factored accounts and then pays the purchase price of the accounts to the company. The details of this deal will be recorded in an agreement that is known as the factoring agreement.

In this document, the parties will set out the details of the sale and use of the accounts receivables, the liabilities and responsibilities of both parties in this agreement as well as financing fees and events of default.

How to use this Document?


This document should be carefully read by the Client and the Factor.

Both the Client and the Factor should sign and return a copy, and once signed, both parties should get a copy. To avoid any future disputes, both parties may wish to have their signatures witnessed.

If either party wishes to amend the agreement in the future, both parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by both parties.

How to Tailor the Document to Your Need

  1. Click “Create Document” button and the document will be prepared with with your account details automatically filled in.

  2. Please fill in any additional information by following the step-by-step guide on the left hand side of the preview document and click the “Next” button.

  3. When you are done, click the “Get Document” button and you can download the document in Word or PDF format.

  4. Please review the document carefully and make any final modifications to ensure that the details are correct before sending to the addressee.

factoring agreement
account receivables

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