Document background
The Accounts Receivable Purchase Agreement is a vital financial instrument used in Austrian business practice to facilitate working capital management and financing. This document is typically employed when a company wishes to monetize its accounts receivable by selling them to a financial institution, thereby obtaining immediate access to cash rather than waiting for customer payments. The agreement, governed by Austrian law, must comply with specific regulatory requirements including the Banking Act (BWG) and Financial Market Money Laundering Act (FM-GwG). It contains detailed provisions on the purchase mechanism, pricing, servicing arrangements, and risk allocation between parties. The document is particularly relevant in situations where companies seek to improve their working capital position, reduce credit risk, or optimize their balance sheet structure through off-balance-sheet financing.
