The Account Receivable Purchase Agreement is a critical financial instrument used in South African commercial practice when businesses seek to optimize their working capital by selling their accounts receivable to financial institutions or factoring companies. This agreement, governed by South African law, establishes the framework for ongoing purchases of receivables, typically on a revolving basis. It includes detailed provisions for the selection, evaluation, and purchase of eligible receivables, pricing mechanisms, and operational procedures for administration and collection. The document must comply with South African financial regulations, including the National Credit Act and Financial Intelligence Centre Act, particularly regarding credit arrangements and anti-money laundering requirements. It's commonly used by businesses seeking immediate liquidity, reducing collection costs, or transferring credit risk, while providing purchasers with a commercial lending opportunity secured by receivables.
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聽of your docs
1. Parties: Identification of the Seller (originator of receivables) and Purchaser (factor/buyer)
2. Background: Context of the agreement, business relationship, and purpose of the receivables purchase arrangement
3. Definitions and Interpretation: Defined terms including Eligible Receivables, Purchase Price, Cut-off Date, Collection Period, etc.
4. Purchase and Sale: Core transaction mechanics, including assignment/cession of receivables and true sale provisions
5. Purchase Price and Payment Terms: Calculation of purchase price, discount rate, reserves, and payment mechanisms
6. Eligibility Criteria: Criteria for receivables to qualify for purchase under the agreement
7. Representations and Warranties: Seller's representations regarding existence, ownership, and quality of receivables
8. Covenants: Ongoing obligations of the Seller regarding operations, reporting, and maintenance of records
9. Collection and Servicing: Procedures for collecting receivables and managing customer relationships
10. Events of Default: Circumstances constituting default and corresponding remedies
11. Indemnification: Indemnification obligations and procedures
12. Confidentiality: Protection of confidential information and trade secrets
13. Notices: Communication procedures between parties
14. Governing Law and Jurisdiction: South African law as governing law and jurisdiction for disputes
15. General Provisions: Standard boilerplate clauses including assignment, amendments, and severability
1. Credit Insurance: Required when receivables are credit insured, detailing insurance arrangements and claims procedures
2. Security Arrangements: Include when additional security is provided for the seller's obligations
3. Cross-Border Provisions: Required for international receivables, addressing exchange control and foreign law requirements
4. Electronic Documentation: Include when parties agree to use electronic platforms for receivables administration
5. Undisclosed/Disclosed Assignment: Specific provisions based on whether the assignment is disclosed to debtors
6. Audit Rights: Detailed audit provisions when required by the purchaser
7. Data Protection: Extended POPIA compliance provisions when significant personal information is involved
8. Refinancing Provisions: Include when the purchaser may refinance the purchased receivables
9. Joint and Several Liability: Required when multiple sellers or guarantors are involved
1. Schedule 1 - Form of Purchase Notice: Template for offering receivables for purchase
2. Schedule 2 - Eligibility Criteria: Detailed list of criteria for acceptable receivables
3. Schedule 3 - Operational Procedures: Detailed procedures for daily operations and reporting
4. Schedule 4 - Approved Debtors: List of approved debtors and their credit limits
5. Schedule 5 - Pricing and Fees: Detailed pricing structure, fees, and calculation methods
6. Schedule 6 - Form of Debtor Notification: Template for notifying debtors of the assignment
7. Schedule 7 - Required Reports: Templates and specifications for required reporting
8. Schedule 8 - Collection Accounts: Details of designated collection accounts and banking arrangements
9. Appendix A - Initial Receivables Portfolio: Details of the initial portfolio of receivables being purchased
10. Appendix B - Compliance Certificates: Templates for periodic compliance certification
Find the exact document you need
Overcontract
A South African law-governed agreement establishing terms between a principal contractor and overcontractor for project execution and service delivery.
Download
Debit Authorization Agreement
A South African law-governed agreement authorizing recurring automatic debit payments from a designated bank account, compliant with local banking and consumer protection regulations.
Download
Loan Account Agreement
A South African law-governed agreement establishing terms and conditions for a loan account between lender and borrower, compliant with the National Credit Act.
Download
Account Purchase Agreement
A South African law-governed agreement for the purchase and transfer of accounts receivable or debt portfolios between parties, including regulatory compliance requirements.
Download
Rental Agreement For Bank Account Opening
A South African rental agreement that doubles as valid proof of address documentation for bank account opening, compliant with both rental and banking regulations.
Download
Master Account Agreement
A South African law-governed agreement establishing the primary banking relationship between a financial institution and its account holders, covering all aspects of account operations and services.
Download
Credit Card Responsibility Agreement
A South African law-governed agreement establishing terms and conditions between credit card issuers and cardholders, compliant with the National Credit Act.
Download
Running Account Credit Agreement
A South African law-governed agreement establishing a revolving credit facility between a credit provider and consumer, compliant with the National Credit Act.
Download
Checking Agreement
A South African law-governed agreement establishing terms and conditions between a bank and customer for checking/current account services.
Download
Business Account Agreement
A South African law-governed agreement establishing the terms and conditions for business banking services between a financial institution and a business entity.
Download
Bookkeeping Confidentiality Agreement
A South African law-governed agreement establishing confidentiality obligations between bookkeepers and clients, ensuring POPIA compliance and protection of financial information.
Download
Trust Account Agreement
A South African law-governed agreement establishing the terms and conditions for managing and administering a trust account, including trustee duties and compliance requirements.
Download
Letter Of Authorization To Debit Account
A South African banking document authorizing automatic debit orders from a bank account, compliant with local banking regulations and consumer protection laws.
Download
Cash Account Management Agreement
A South African law-governed agreement between a bank and account holder establishing terms for cash account management and operations.
Download
Account Control Agreement
A South African law-governed tripartite agreement establishing control over deposit accounts as collateral security, defining rights and control mechanisms between account holder, secured party, and bank.
Download
Notice Of Assignment Of Accounts Receivable
A South African legal notice informing debtors that their accounts receivable have been assigned from one creditor to another, including new payment instructions and acknowledgment requirements.
Download
Savings Account Agreement
South African law-governed agreement establishing terms and conditions for operating a savings account between a bank and customer, compliant with local banking regulations.
Download
Security Account Control Agreement
A South African law-governed agreement establishing control over bank accounts as collateral security, between an account holder, secured party, and account bank.
Download
Deposit Account Agreement
South African law-governed agreement establishing terms and conditions for operating a bank deposit account, ensuring compliance with local banking and consumer protection regulations.
Download
Margin Agreement
A South African law-governed agreement establishing terms for posting and managing collateral between financial counterparties.
Download
Account Bank Agreement
A South African law-governed agreement establishing banking arrangements and account operations between a bank and other parties, typically used in project finance or corporate banking contexts.
Download
Bank Account Agreement
A South African law-governed agreement establishing the terms and conditions between a bank and its account holder for operating a bank account and related services.
Download
Securities Account Control Agreement
A South African law-governed tripartite agreement establishing control over a securities account for secured financing purposes, regulated under the Financial Markets Act and Financial Sector Regulation Act.
Download
Account Management Agreement
A South African law-governed agreement establishing terms for professional account management services, incorporating local financial sector regulations and compliance requirements.
Download
Joint Account Agreement
A South African law-governed agreement establishing the terms and conditions for operating a joint bank account between multiple account holders and a banking institution.
Download
Account Pledge Agreement
A South African law-governed agreement creating security over bank accounts through a pledge arrangement, establishing rights and obligations of the pledgor and pledgee.
Download
Account Opening Agreement
A South African law-governed agreement establishing terms and conditions for bank account opening and maintenance between a financial institution and account holder(s).
Download
Certificate Of Deposit Agreement
A South African law-governed agreement establishing terms for a fixed-term deposit between a financial institution and depositor, including interest rates and maturity conditions.
Download
Account Receivable Purchase Agreement
South African law-governed agreement for the sale and transfer of accounts receivable between a business and a financial institution, detailing purchase terms and operational procedures.
Download
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; 骋别苍颈别鈥檚 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