Document background
An Account Receivable Purchase Agreement is utilized when a company seeks to monetize its accounts receivable by selling them to a financial institution or factoring company. This Irish law-governed document sets out the terms under which the purchaser will buy receivables on an ongoing basis, including purchase price calculations (typically at a discount), eligibility criteria for receivables, collection procedures, and risk allocation between parties. It's commonly used for working capital optimization, particularly in industries with longer payment terms or substantial receivables portfolios. The agreement must comply with Irish financial regulations, corporate law, and data protection requirements, making it suitable for both domestic and cross-border transactions involving Irish entities.
