Contract for the sale of future receivables

## What the document says
A purchase price is paid today for a purchased amount of future receivables. A specified percentage of daily receipts is to be delivered until the purchased amount is received. An estimated daily or weekly payment is set as a proxy for that percentage, with a reconciliation mechanism to adjust it. There is no maturity date, no interest rate and no repayment schedule in the traditional sense, and the recitals will state expressly that the parties intend a purchase and not a loan.

## What else is in it
A security interest in receivables and often all assets, an ACH authorization, a personal guarantee that is frequently styled as a guarantee of performance rather than of payment, a long list of events of default including additional financing, blocking the debits, changing bank accounts and material misrepresentation, acceleration of the full purchased amount, collection costs, choice of law and venue, jury waiver, sometimes arbitration, and in some packages a confession of judgment.

## Why the framing matters
Loans attract usury limits and lending license requirements; purchases generally do not. Courts asked to recharacterize these agreements have focused on a consistent set of features: whether the reconciliation right is real and available in practice, whether the repayment term is genuinely indefinite rather than fixed, and whether the funder actually bears the risk of the merchant's failure, including whether the contract treats bankruptcy as a default. Where an agreement guarantees repayment in substance, courts in several states have been willing to treat it as a loan; where the risk transfer is real, they have upheld the purchase framing.