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1. Parties: Identification of the Factor (financing party) and the Client (seller of receivables), including full legal names and addresses
2. Background: Context of the agreement, nature of the Client's business, and purpose of the factoring arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Receivables', 'Debtors', 'Purchase Price', 'Advance Rate', etc.
4. Assignment of Receivables: Core provisions regarding the assignment of receivables, including the mechanism and timing of assignments
5. Purchase Price and Payment Terms: Calculation of purchase price, advance rate, reserves, and payment mechanisms
6. Representations and Warranties: Client's representations regarding ownership of receivables, absence of encumbrances, and validity of underlying transactions
7. Covenants: Ongoing obligations of the Client, including maintenance of records and notification requirements
8. Collection and Management of Receivables: Procedures for collection, handling of payments, and management of assigned receivables
9. Events of Default: Circumstances constituting default and consequences thereof
10. Term and Termination: Duration of the agreement and termination provisions
11. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
1. Security Provisions: Additional security arrangements such as personal guarantees or charges over assets, used when enhanced security is required
2. Credit Insurance: Provisions regarding credit insurance arrangements, included when receivables are to be insured
3. Electronic Trading Platform: Provisions for electronic submission and management of receivables, included when an electronic platform is used
4. Sharia Compliance: Additional provisions to ensure Sharia compliance, included when the factoring arrangement needs to be Sharia-compliant
5. Cross-Border Provisions: Additional provisions for international receivables, included when dealing with foreign debtors
6. Confidentiality and Data Protection: Detailed provisions on handling confidential information and data protection, included when dealing with sensitive information or specific regulatory requirements
1. Schedule 1 - Eligibility Criteria: Detailed criteria for receivables to be eligible for factoring
2. Schedule 2 - Fee Structure: Detailed breakdown of all fees, charges, and commission rates
3. Schedule 3 - Operational Procedures: Detailed procedures for submission, verification, and management of receivables
4. Schedule 4 - Form of Notice of Assignment: Template for notifying debtors of the assignment of receivables
5. Schedule 5 - Approved Debtors: List of approved debtors and their credit limits
6. Schedule 6 - Required Documents: List of documents required for verification of receivables
7. Appendix A - Reporting Requirements: Forms and templates for regular reporting by the Client
8. Appendix B - Power of Attorney: Form of power of attorney for collection and enforcement actions
Financial Services
Manufacturing
Trading
Distribution
Logistics
Construction
Healthcare
Retail
Technology
Professional Services
Industrial
Import/Export
Legal
Finance
Treasury
Credit
Risk Management
Operations
Compliance
Commercial
Accounts Receivable
Trade Finance
Chief Financial Officer
Finance Director
Treasury Manager
Credit Manager
Financial Controller
Legal Counsel
Commercial Director
Accounts Receivable Manager
Risk Manager
Operations Manager
Compliance Officer
Business Development Manager
Trade Finance Manager
Working Capital Manager
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