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Receivables Sale Agreement (Invoice Factoring)
Free receivables sale (factoring) agreement outline — a business sells its unpaid invoices to a factor for immediate cash.
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This free receivables sale agreement (invoice factoring) covers 1. Sale of Receivables, 2. Purchase Price, 3. Factoring Fee, 4. Recourse, 5. Notification to Debtors with 7 clearly marked [placeholder] fields to fill in — built for small businesses and individuals documenting a loan or expense putting financial terms in writing so both sides have a clear, shared record. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.
Receivables Sale Agreement (Factoring)
Seller (Business): [Name] Factor: [Company Name] Effective Date: [Date]
1. Sale of Receivables
Seller agrees to sell, and Factor agrees to purchase, eligible accounts receivable as designated by Seller from time to time, subject to Factor's approval of each account debtor's creditworthiness.
2. Purchase Price
Factor will advance [%] of the face value of each approved invoice upon purchase, with the remaining balance (less the factoring fee) paid once the invoice is collected.
3. Factoring Fee
Fee: [%] of invoice value, [flat or increasing with time outstanding — specify].
4. Recourse
[ ] Non-recourse: Factor bears the loss if the account debtor fails to pay due to insolvency. [ ] With recourse: Seller must buy back or replace any invoice not paid within [Number] days.
5. Notification to Debtors
[State whether account debtors are notified to pay Factor directly ("notification factoring") or Seller continues collecting and remits to Factor ("non-notification").]
6. Seller's Warranties
Seller warrants that each sold invoice is valid, for goods/services actually delivered, and not already pledged or sold elsewhere.
7. Term
This Agreement runs for [Term] and renews automatically unless either party gives [Notice Period] notice.
Seller: ______________________ Date: ____________ Factor: ______________________ Date: ____________
*This document is provided for informational and educational purposes only and does not constitute legal or financial advice. Recourse terms (Section 4) make a real difference to who bears the risk of a non-paying customer — read this section carefully, since "factoring" arrangements vary widely on exactly this point.*
Edit directly in the box above. Download PDF anytime — the docstoc.io footer is always included and cannot be removed.
What's included
- Edit online — click the document, fill in placeholders, download a PDF
- 7 standard sections: 1. Sale of Receivables, 2. Purchase Price, 3. Factoring Fee, 4. Recourse, 5. Notification to Debtors, 6. Seller's Warranties, …
- 7 clearly marked [placeholder] fields for quick personalizing
- Free to use — no account or signup required
- Fully editable — adjust any clause to match your actual situation
- Includes a signature block, ready to print or sign digitally
- Fixed docstoc.io footer on every PDF (not removable)
Who this template is for
Freelancers & solo founders
Handling routine business paperwork without commissioning custom legal drafting for every document.
Small businesses
Standardizing recurring documents — leases, agreements, notices — across a growing operation.
Anyone reviewing before signing
Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.
Informal lending & reimbursements
Money changing hands between people or a business and its team, without a bank's paperwork.
FAQ
Is this receivables sale agreement (invoice factoring) template really free?
Yes, completely free — view, edit, and download this receivables sale agreement (invoice factoring) as a PDF without creating an account.
What does this receivables sale agreement (invoice factoring) cover?
This finance template includes 1. Sale of Receivables, 2. Purchase Price, 3. Factoring Fee, 4. Recourse. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.
Is this legal advice?
No. This covers the standard structure, not the interest-rate limits, disclosure requirements, or tax implications that can apply depending on your state and the amount involved. Check those specifics with an accountant or financial attorney before you rely on it.
Can I edit the wording?
Yes. All 7 placeholder fields and every clause are editable right on the page — change what doesn't fit, then download an updated PDF anytime.
Where can I find more free templates like this?
Browse more free finance and related document templates in the docstoc library at /document-templates/.
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