Document background
The Receivables Sale Agreement is a critical document used in trade finance and asset monetization transactions in Nigeria. It enables companies to convert their accounts receivable into immediate cash flow by selling these assets to financial institutions or investors. This agreement type must comply with Nigerian legal requirements, particularly the Companies and Allied Matters Act 2020 and the Secured Transactions in Movable Assets Act 2017. The document typically includes detailed provisions on asset transfer, pricing mechanisms, representations and warranties, and ongoing obligations of both parties. It's particularly relevant in the current Nigerian business environment where access to traditional financing may be limited, offering businesses an alternative funding source while providing investors with access to trade-related assets.
