Document background
The Accounts Receivable Financing Agreement is a crucial financial instrument used in Ireland when businesses seek to improve their working capital position by monetizing their accounts receivable. This document is typically employed when companies have substantial receivables from creditworthy customers but require faster access to cash flow. The agreement, governed by Irish law and compliant with EU regulations, establishes the framework for selling receivables to a financial institution, detailing purchase mechanisms, pricing, operational procedures, and risk allocation. It includes specific provisions required under Irish legislation, particularly the Companies Act 2014 and financial services regulations, and can be customized to accommodate various business models and industry requirements. The document is essential for businesses seeking alternative financing solutions outside traditional lending arrangements.
