Document background
The Receivables Purchase Agreement is a fundamental document in trade finance and working capital management, used when a company wishes to sell its accounts receivable to a financial institution or other purchaser. This Danish law-governed agreement is particularly relevant in scenarios where companies seek to improve their working capital position, reduce credit risk, or obtain immediate financing against their receivables. The document comprehensively addresses all aspects of the receivables purchase program, including purchase mechanics, pricing, servicing, collections, and reporting requirements. It must comply with Danish legal requirements, particularly the Danish Assignment Act and Contracts Act, and often includes specific provisions for consumer protection and data privacy where relevant. The agreement is typically used in ongoing purchase arrangements rather than one-off transactions and may form part of a larger supply chain finance or receivables purchase program.
