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Factoring Agreement Template

Factoring Agreement Template 2025

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The Factoring Agreement outlines the terms under which a Seller sells a portion of its accounts receivable to a Factor in exchange for immediate working capital. It defines key terms such as Accounts Receivable, Advance Rate, Purchase Price, and Reserve Amount. The agreement details the obligations of both parties, including the Seller's representations and warranties regarding the receivables and the Factor's rights to collect payments. It also specifies conditions for termination, governing law, and other miscellaneous provisions.

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