The Accounts Receivable Financing Agreement is essential for businesses in Malaysia seeking to optimize working capital by monetizing their accounts receivable. This document is used when a company wishes to obtain immediate financing against its outstanding invoices, with the financing provider purchasing these receivables at a discount. The agreement, governed by Malaysian law, establishes the legal framework for this financing arrangement, including detailed provisions for the assessment, purchase, and collection of receivables. It incorporates necessary compliance elements with Malaysian financial regulations, risk management provisions, operational procedures, and security mechanisms. The document is particularly relevant in today's business environment where companies seek efficient working capital solutions while ensuring proper risk allocation between parties.

1. Parties: Identification of the Finance Provider and the Client (seller of receivables)

2. Background: Context of the agreement, including the nature of the Client's business and purpose of the financing arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Facility and Purpose: Details of the financing facility, including amount, purpose, and general terms

5. Assignment of Receivables: Terms governing the assignment or transfer of receivables from Client to Finance Provider

6. Purchase Price and Payment Terms: Calculation of purchase price for receivables, advance rate, reserves, and payment mechanics

7. Eligibility Criteria: Criteria for receivables to qualify for financing

8. Representations and Warranties: Standard and specific representations and warranties by the Client

9. Covenants: Positive and negative covenants of the Client

10. Operational Procedures: Procedures for submission, verification, and processing of receivables

11. Collections and Payment Administration: Management of collections and payment processing

12. Events of Default: Circumstances constituting default and consequences

13. Remedies: Rights and remedies of the Finance Provider upon default

14. Indemnification: Indemnification obligations of the Client

15. Fees and Expenses: All applicable fees, charges, and expense reimbursement obligations

16. Term and Termination: Duration of agreement and termination provisions

17. Confidentiality: Protection of confidential information

18. Notices: Requirements for giving notices under the agreement

19. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction provisions

20. General Provisions: Standard boilerplate provisions including amendments, assignments, severability