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Accounts receivable purchase agreement

Accounts Receivable - Contract to Sale 2026

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The document is a contract for the sale of accounts receivable between a Seller and a Buyer. It outlines the terms under which the Seller agrees to sell all rights to specified accounts, including representations about the accounts' validity and status. The Buyer has a period to inspect the accounts and can cancel the contract if unsatisfied. The agreement also specifies whether it is with or without recourse against the Seller and is governed by the laws of a specified state.

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Click ‘Get Form’ to open it in the editor.
Begin by entering the Seller's name and Buyer's name in the designated fields at the top of the form.
In Section 1, list all accounts being sold as specified in Exhibit 'A'. Ensure that all invoices related to these accounts are included.
Section 2 requires you to confirm that all goods or services have been delivered. Fill in the account details, including balance and debtor information, accurately.
Indicate if any payments are contingent on future deliveries and note any contested accounts if applicable.
Complete Section 3 by specifying whether the sale is with or without recourse against the Seller.
In Section 4, provide a timeframe for Buyer’s inspection of accounts. Specify how many days they have for due diligence.
Finally, fill in the date at the bottom of the form and ensure both parties sign where indicated.

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Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is a good AR to sales ratio?

This part can be tricky. One rule of thumb is that a good AR ratio is generally between 7 and 10, but that depends on your business model, industry, the payment terms you set for your customers, and other factors.

What percent of revenue should AR be?

A Quick Reference Chart for AR/S Ratios Ratio RangeMeaning 0-10% (Low) Great cash flow; revenues are mostly collected. 11-30% (Moderate) Some delay in payments; room for improvement. 30%+ (High) Cash flow risk; too many unpaid invoices.

What are the 5 Cs of accounts receivable management?

What are the 5 Cs of accounts receivable management and their significance? The 5 CsCharacter, Capacity, Capital, Conditions, and Collateralhelp assess a customers creditworthiness.

What is the 10 rule for accounts receivable?

The 10 Rule for accounts receivable suggests that businesses should aim to collect at least 10% of their outstanding receivables each month. This practice helps maintain healthy cash flow, reduces the risk of bad debts, and ensures timely payments.

What is a good AR ratio?

One rule of thumb is that a good AR ratio is generally between 7 and 10, but that depends on your business model, industry, the payment terms you set for your customers, and other factors.

sale of future receivables

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What is the AR to revenue ratio?

The accounts receivable turnover ratio is a financial metric used to measure a businesss effectiveness at collecting debt and extending credit. AR turnover is calculated by dividing net credit sales by average accounts receivable. The higher the ratio, the better the business manages customer credit.