Document background
The Account Receivable Purchase Agreement is a critical document used in trade finance and working capital management under Danish law. It enables businesses to monetize their accounts receivable by selling them to financial institutions or other purchasers, thereby improving their working capital position and cash flow management. The agreement is particularly relevant in the Danish market where businesses seek alternative financing solutions while ensuring compliance with local legal requirements for receivables assignments. It includes detailed provisions for the selection, evaluation, and transfer of receivables, price determination, ongoing administration, and risk allocation between parties. The document serves as a master agreement that can facilitate multiple purchases over time, incorporating specific Danish legal requirements for valid assignments and third-party effectiveness.
