Document background
The Account Receivable Purchase Agreement is a fundamental document used in trade finance and working capital solutions in Hong Kong. It enables businesses to monetize their accounts receivable by selling them to financial institutions or specialized purchasers, thereby improving their working capital position. The agreement is particularly relevant in Hong Kong's dynamic trading environment, where companies often require efficient working capital solutions. It establishes a framework for either one-time or ongoing purchases of receivables, incorporating Hong Kong's legal requirements regarding assignments, security interests, and financial regulations. The document typically includes detailed provisions about eligibility criteria, purchase price calculations, servicing arrangements, and risk allocation, tailored to comply with Hong Kong law while meeting international business standards.
