This Factoring Agreement template is designed for use in New Zealand when a business seeks to improve its working capital position by selling its accounts receivable to a financial institution. The document comprehensively addresses the requirements of New Zealand's financial services and commercial law framework, including compliance with the Contract and Commercial Law Act 2017 and Personal Property Securities Act 1999. It's particularly suitable for businesses with regular trade receivables seeking immediate access to funds, while providing the factor with necessary security and operational controls. The agreement includes detailed provisions for receivables eligibility, purchase price calculations, representations and warranties, operational procedures, and risk allocation between parties.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identifies the factor and the client (seller of receivables), including their legal names, addresses, and company registration details
2. Background: Sets out the context of the agreement, explaining that the client wishes to sell its receivables and the factor wishes to purchase them
3. Definitions: Defines key terms used throughout the agreement, including 'Receivables', 'Eligible Receivables', 'Purchase Price', 'Advance Rate', etc.
4. Purchase and Sale of Receivables: Core provisions detailing the assignment and transfer of receivables, including the true sale nature of the transaction
5. Purchase Price and Payment Terms: Specifies how the purchase price is calculated, advance rates, reserves, and payment mechanisms
6. Eligibility Criteria: Defines the criteria for receivables to be eligible for purchase under the agreement
7. Representations and Warranties: Client's representations regarding their business, receivables, and authority to enter into the agreement
8. Covenants: Ongoing obligations of the client, including reporting requirements and operational covenants
9. Collection and Servicing: Procedures for collecting receivables, including notification to debtors and handling of payments
10. Events of Default: Circumstances constituting default and their consequences
11. Termination: Provisions for ending the agreement, including termination events and consequences
12. General Provisions: Standard boilerplate clauses including governing law, notices, amendments, and assignment
1. Credit Insurance: Required when receivables are covered by credit insurance, detailing requirements and procedures
2. Electronic Trading Platform: Needed when the parties use an electronic platform for receivables submission and trading
3. Cross-Border Provisions: Required for international factoring arrangements, addressing currency conversion and country-specific requirements
4. Debtor Credit Limits: Used when the factor sets specific credit limits for individual debtors
5. Asset-Based Lending Facility: Included when the factoring is part of a broader asset-based lending arrangement
6. Priority and Subordination: Required when there are other creditors with security interests in the receivables
7. Special Industries Provisions: Specific provisions for particular industries (e.g., construction, healthcare) with unique receivables characteristics
1. Schedule 1 - Eligible Receivables Criteria: Detailed list of criteria for receivables to be eligible for purchase
2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and discount rates
3. Schedule 3 - Form of Notice of Assignment: Template for notifying debtors of the assignment of receivables
4. Schedule 4 - Operational Procedures: Detailed procedures for submission, verification, and purchase of receivables
5. Schedule 5 - Reporting Requirements: Forms and templates for required regular reporting
6. Schedule 6 - Excluded Debtors: List of debtors whose receivables are excluded from the agreement
7. Schedule 7 - Collection Procedures: Detailed procedures for collection of receivables
8. Appendix A - Power of Attorney: Form of power of attorney for factor to collect receivables
9. Appendix B - Debtor Notification Forms: Templates for various communications with debtors
Find the exact document you need
Soft Loan Agreement
A New Zealand-governed agreement establishing concessional loan terms with favorable conditions including below-market rates and flexible repayment options.
Download
Small Loan Agreement
A New Zealand-compliant small loan agreement that sets out terms for lending and borrowing money, adhering to CCCFA requirements.
Download
Private Lender Loan Agreement
A New Zealand-compliant loan agreement between a private lender and borrower, setting out loan terms, conditions, and obligations under NZ law.
Download
Factoring Agreement
A New Zealand-governed agreement establishing terms for the purchase of accounts receivable by a factor from a business client.
Download
Loan For Use Agreement
A New Zealand-compliant agreement establishing terms for the temporary, gratuitous loan of items or assets between parties.
Download
Equipment Lease Purchase Option
New Zealand-governed agreement for equipment lease with purchase option, detailing lease terms and purchase conditions under NZ commercial law.
Download
Bank Guarantee Agreement
A New Zealand-governed agreement where a bank guarantees payment to a beneficiary upon specified conditions if a principal debtor defaults on their obligations.
Download
Tri Party Agreement Home Loan
A New Zealand-governed agreement establishing a three-way home loan arrangement between a lender, borrower, and third party, compliant with CCCFA requirements.
Download
Car Payment Plan Contract
A New Zealand-compliant agreement for vehicle purchase through structured payments, establishing terms, security interests, and party obligations under NZ law.
Download
Guarantor Agreement For Loan
A New Zealand law-governed agreement where a guarantor commits to fulfilling a borrower's loan obligations in case of default, subject to NZ CCCFA requirements.
Download
Building Loan Agreement
A New Zealand-governed agreement establishing terms for construction-specific financing, including drawdown procedures and building requirements.
Download
Joint Venture Investment Agreement
A New Zealand-governed agreement establishing terms and conditions for a joint venture investment, including structure, contributions, management, and exit provisions.
Download
Loan Sharing Agreement
A New Zealand-compliant agreement governing the sharing of loan obligations and rights between multiple lenders for a single borrowing arrangement.
Download
Vendor Finance Agreement
A New Zealand law-governed agreement establishing terms for vendor-provided financing arrangements, including payment terms, security interests, and party obligations.
Download
Finance Contract
A New Zealand law-governed agreement establishing terms and conditions for a financial facility between lender and borrower, including key financial terms, security arrangements, and regulatory compliance requirements.
Download
Family Loan Agreement
A New Zealand-compliant legal agreement that formalizes and documents the terms of a monetary loan between family members.
Download
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it