Sale and Purchase of Future Receivables Clause Samples
The 'Sale and Purchase of Future Receivables' clause establishes that one party agrees to sell, and the other to buy, receivables that will be generated from future transactions or sales. This clause typically outlines the terms under which the buyer acquires rights to payments that the seller expects to receive from its customers at a later date, often specifying the purchase price, timing, and any conditions precedent. Its core function is to provide immediate liquidity to the seller by converting anticipated future income into present cash, while transferring the risk and benefit of collecting those receivables to the buyer.
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Sale and Purchase of Future Receivables. 4.1. Purchase and Sale Transaction Upon our initially making the amount of the Advance available to you, you hereby agree to sell, assign and transfer to us, and we hereby agree to purchase from you, all of your right, title and interest in and to the Specified Amount of Future Receivables, in accordance with and subject to the terms of this Agreement. YOU UNDERSTAND AND AGREE THAT THIS IS A PURCHASE AND SALE TRANSACTION, NOT A LOAN.
Sale and Purchase of Future Receivables. 4.1. Purchase and Sale Transaction Upon our initially making the amount of the Advance available to you, you hereby agree to sell, assign and transfer to us, and we hereby agree to purchase from you, all of your right, title and interest in and to the Specified Amount of Future Receivables, in accordance with and subject to the terms of this Agreement. YOU UNDERSTAND AND AGREE THAT THIS IS A PURCHASE AND SALE TRANSACTION, NOT A LOAN. “Future Receivables” include all future payments made by cash, check, ACH, direct or pre-authorized debit, wire transfer, credit card, debit card, charge card or other form of payment in connection with, arising from, related to or otherwise attributable to your business, including for goods, services or facilities provided by you.
Sale and Purchase of Future Receivables