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A receivable purchase agreement is a contract between a seller and a financial institution that allows the seller to sell unpaid invoices from buyers to the financial institution. This means that the seller can enable cash flow until payment is received from the buyer.
Ours is the top 10 reasons that companies come to us and start selling us their accounts receivable. They require consistent cash flow. Companies want credit protection. They want to have regular ongoing payroll funded. They want to import or buy more inventory. They want to fulfill a large purchase order.
Accounts Receivable refers to sales that have occurred on credit, meaning that the company has not yet collected the cash proceeds from these sales.
You either retain or pass the receivables to the buyer. The choice of whether to keep or to let go depends on various factors. Since most buyers prefer a clean and free business, you are likely to retain account receivables when selling your business.
What is a Purchase of Future Receivables? The sale of future receivables is a way for a company to sell future business income to a 3rd party and obtain immediate cash. Since this is the sale of future earnings, its a business-to-business transaction not a loan.

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What is a Purchase of Future Receivables? The sale of future receivables is a way for a company to sell future business income to a 3rd party and obtain immediate cash. Since this is the sale of future earnings, its a business-to-business transaction not a loan.
Selling receivables is an alternative financing option commonly known as invoice factoring. Once you are approved for funding, the receivable factoring process is simple: The factoring company buys the invoice. You receive a portion of the invoice, usually 70-90%, ahead of the net terms.
Future Receivables means the proceeds of sales by the Merchant to its customers after the Acceptance Date, arising from Payments by the Merchants customers, less any fees, charges or deductions made by any of the Acquirers and paid to the Nominated Bank Account by any of the Acquirers; Sample 1Sample 2Sample 3.

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