Document background
The Accounts Receivable Assignment Agreement is a crucial document used in German commercial practice for businesses seeking to monetize their receivables or secure financing. This agreement, governed by German law, particularly the German Civil Code (BGB), enables companies to transfer their rights to receive payment from customers to another party, typically a financial institution. It's commonly used in factoring arrangements, supply chain financing, or as security for loans. The document must address specific German legal requirements, including proper identification of receivables, compliance with form requirements, and data protection regulations. The agreement becomes especially relevant in scenarios where companies need to improve their working capital position or establish financing arrangements based on their accounts receivable portfolio.
