Document background
The Accounts Receivable Assignment Agreement is a crucial document used in Danish commercial and financial transactions where a business wishes to transfer its rights to receive payment from its customers to another party, typically a financial institution or factoring company. This agreement is commonly used for improving cash flow, financing operations, or as part of securitization arrangements. The document must comply with Danish law requirements, particularly the Danish Contracts Act and Debt Instruments Act, and includes detailed provisions about the receivables being transferred, purchase price, collection rights, representations and warranties, and operational procedures. It's particularly important in factoring arrangements, supply chain finance, and other financing structures where receivables serve as a key asset.
