Document background
The Rec Purchase Agreement is commonly used in trade finance, factoring, and securitization transactions under English and Welsh law. It enables businesses to monetize their receivables by selling them to financial institutions or other buyers, thereby improving working capital and cash flow. The agreement typically covers both existing and future receivables, establishing the framework for ongoing purchases, and includes crucial elements such as eligibility criteria, purchase price calculations, and representations about the quality and enforceability of the receivables. This document is particularly important in structured finance transactions and must comply with English law requirements for valid assignments.
