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View the related practice notes about Receivables

Distinguishing between lending against the security of receivables and purchasing receivables

This Practice Note gives a brief overview of the key legal issues and discussion points commonly encountered when asset-based lenders are deciding whether to offer receivables purchase/invoice discounting facilities or to provide a loan secured against the value of receivables.There are fundamental differences between buying receivables (also known as debts) and lending on the security of receivables. Asset-based lenders in the UK have historically used invoice discounting facilities, which involve the purchase of receivables, to provide advances against the purchase price of those receivables and this is still the most common funding structure in the UK.Under an invoice discounting facility, in consideration for payment of the purchase price, the asset-based lender receives title to the receivable, together with any ancillary rights related to that receivable, which can include, where the receivable relates to the sale of goods to the debtor, the right to returned goods and the right to repossess goods under retention of title provisions.No rights are retained by the assignor in respect of the receivable. In particular, there...

Taking security over receivables

In commercial lending transactions receivables are typically offered as security:•as part of a package of security over the whole of a company's assets (see Practice Note: Key features of debentures), and•in transactions where a steady stream of receivables forms a major part of the borrower's assets and the lender wants to control that income stream (for example, where the borrower is a company which provides goods and services to third parties)This Practice Note explains the key issues which arise when taking security over receivables.For information on taking security over other types of intangible assets see Practice Notes:•Taking security over insurance policies, and•Taking security over intellectual property rightsThis Practice Note focuses on receivables, but more general information on taking security over contractual rights can be found in Practice Note: Taking security over contractual rights.For specific information on receivables financings, see Practice Note: Invoice discounting and factoring.Nature of receivablesIn broad terms, a receivable is the right to receive the payment of money which is enforceable by legal action. Receivables are a type...

View the related precedents about Receivables

Assignment clause—construction contracts

Assignment Consultant’s appointment 1 The Consultant shall not assign the benefit of and/or any rights under this Agreement to any person without the prior written consent of the Employer. 2 The Employer may assign, charge or transfer the benefit of and/or any rights under this Agreement without the consent of the Consultant being required: 2.1

Escrow Agreement

Escrow Agreement Date [insert date of Agreement] Parties 1 [insert name of Employer] of [insert address] [incorporated in England and Wales with company registration number] [insert company registration number] (the 'Employer') 2 [insert name of Contractor] of [insert address] [incorporated in England and Wales with company registration number] [insert company registration number] (the 'Contractor') 3 [insert name of firm] of [insert address] [a limited liability partnership] (the 'Escrow Holder') Whereas (A) The Employer [has entered into OR intends to enter into] a contract with the Contractor for the [design and] construction of [insert brief description of the project] at [insert location of site] (the 'Building Contract'). (B) The Employer has agreed to deposit a sum of money in a designated interest-bearing account in accordance with the provisions of this agreement as security for payment to the Contractor under the Building Contract. (C) The Escrow Holder has agreed to hold the deposit and operate the designated interest-bearing account in accordance with the terms of this...

View the related News about Receivables

Getting tough on financial fraud—lessons from recent SFO prosecutions

Corporate Crime analysis: Andrew Katzen, partner, and Fiona Bowen, paralegal, both at Hickman & Rose, examine the background to a recent prosecution by the Serious Fraud Office (SFO) concerning a £160m finance fraud, and assess the significance of the sentences imposed and the judiciary’s approach.