Document background
The Receivables Sale Agreement is a crucial document used when a company wishes to monetize its accounts receivable by selling them to a financial institution or factoring company. This type of agreement, governed by Austrian law, is commonly used for improving cash flow, reducing credit risk, or as part of a broader financing strategy. The document needs to comply with Austrian legal requirements, including the Austrian Civil Code (ABGB) and Commercial Code (UGB), while also addressing EU regulations such as GDPR. It typically includes detailed provisions on the transfer mechanism, purchase price calculation, representations about the quality of receivables, servicing arrangements, and debtor notification requirements. The agreement is particularly important in factoring arrangements and trade finance transactions, where it serves as the primary document governing the relationship between the seller and purchaser of the receivables.
