Document background
The Accounts Receivable Financing Agreement is essential for businesses seeking to optimize working capital through the monetization of their accounts receivable. This document, governed by Dutch law and compliant with the Dutch Civil Code (Burgerlijk Wetboek), is particularly relevant in scenarios where companies need to improve cash flow, reduce collection costs, or transfer credit risk. It establishes a framework for ongoing sales of receivables, typically used by businesses with regular B2B sales and creditworthy customers. The agreement covers crucial aspects such as receivable eligibility, purchase price calculations, operational procedures, and risk allocation between parties. It's designed to comply with Dutch financial regulations while providing flexibility for various business needs and industry-specific requirements.
