Factoring Agreement Template UK

The Factoring Agreement Template UK is offered in multiple formats, including PDF, Word, and Google Docs, featuring both editable and printable samples for your convenience.


Sample

Factoring Agreement Template UK

Editable – Printable



Factoring Agreement Template UK

1. Client Information


2. Factor Information


3. Agreement Details


4. Scope of Factoring Services

5. Client Obligations

6. Factor Obligations

7. Fees and Payment Terms

8. Confidentiality and Data Protection

9. Termination Conditions

10. Dispute Resolution

11. Signatures and Agreement

12. Declaration and Signatures




PDF


WORD

Examples


Factoring Agreement Template UK (1)
Between:
[Name of the Client]
[Client’s ID]
[Client’s Address]
[Client’s Phone]
[Client’s Email]
And:
[Name of the Factor]
[Factor’s ID]
[Factor’s Address]
[Factor’s Phone]
[Factor’s Email]
Introduction:
This agreement outlines the terms and conditions under which the Factor agrees to purchase accounts receivable from the Client, commencing on [Start Date].
Clause 1: Definitions
For the purposes of this agreement, “Factoring” refers to the sale of the Client’s invoices to the Factor at a discount in exchange for immediate cash. “Accounts Receivable” means the amounts owed to the Client by its customers for merchandise sold or services rendered.
Clause 2: Purchase of Receivables
The Factor agrees to purchase the following Receivables: [List specific invoices or descriptions], subject to the Factor’s approval.
Clause 3: Purchase Price and Discount Rate
The Client will receive [Amount] as the Purchase Price for the Receivables, after applying a discount rate of [Percentage]% based on the total invoice amount.
Clause 4: Fees and Deductions
Additional fees may apply, including but not limited to [List any additional fees], which will be deducted from the Purchase Price.
Clause 5: Client’s Responsibilities
The Client agrees to notify the Factor of any disputes regarding the Accounts Receivable and to collect said Receivables in accordance with terms agreed upon prior to the transfer.
Clause 6: Termination of Agreement
This agreement may be terminated by either party with [Notice Period] written notice. Upon termination, any outstanding invoices must be paid in full.
Clause 7: Governing Law
This agreement shall be governed by the laws of [Jurisdiction, e.g., England and Wales].
Signed in [City], [Date].
Sincerely,
[Signature of the Client]
[Name of the Client]
[Signature of the Factor]
[Name of the Factor]
Factoring Agreement Template UK (2)
Between:
[Name of the Client]
[Client’s ID]
[Client’s Address]
[Client’s Phone]
[Client’s Email]
And:
[Name of the Factor]
[Factor’s ID]
[Factor’s Address]
[Factor’s Phone]
[Factor’s Email]
Introduction:
This agreement specifies the conditions under which the Factor will finance the Client’s receivables, ensuring liquidity and cash flow improvements throughout the duration of the agreement.
Clause 1: Scope of Factoring Services
The Factor agrees to provide full recourse factoring services, including the purchase, collection, and management of Accounts Receivable as specified in this agreement.
Clause 2: Terms of Purchase
The Factor will purchase Receivables amounting to [Total Amount], with a factor fee of [Percentage]% deducted at the time of purchase.
Clause 3: Client’s Obligations
The Client shall ensure that the Receivables are genuine, enforceable, and undisputed, and shall provide all relevant information required for the Factor’s assessment.
Clause 4: Payment Terms
Following the purchase of Receivables, the Factor agrees to pay the Client within [Number of Days] days from the date of acceptance of the Receivables.
Clause 5: Indemnity and Liability
The Client agrees to indemnify the Factor against any losses arising from the non-collection of the Receivables or any breach of the representations made.
Clause 6: Confidentiality
Both parties agree to maintain the confidentiality of all information shared in relation to this agreement, except as required by law.
Clause 7: Governing Law
This agreement shall be governed by and construed in accordance with the laws of [Jurisdiction, e.g., England and Wales].
Signed in [City], [Date].
Sincerely,
[Signature of the Client]
[Name of the Client]
[Signature of the Factor]
[Name of the Factor]

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Factoring Agreement Template UK