Document background
A Receivables Pledge Agreement is commonly used in Singapore's financing transactions where businesses seek to leverage their accounts receivable as security. This document is crucial when companies need working capital financing or wish to secure other obligations without disrupting their cash flow. The agreement must comply with Singapore's security and corporate laws, requiring proper registration and perfection. It details the specific receivables being pledged, mechanisms for collection, and enforcement rights, while addressing both present and future receivables. The document is particularly relevant in trade finance, supply chain financing, and general corporate lending scenarios.
