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A/R Finance & Factoring Terms GLossary

What isIntercreditor Agreement

An Intercreditor Agreement is an agreement between one or more creditors who have shared interests in a particular borrower. The agreement spells out aspects of their relationship to each other and to the borrower so that, in the event a problem emerges, there will be ground rules in place to handle the situation. The specifics of an inter-creditor agreement vary depending on the borrower, the type of debt, and other factors, such as the presence of cosigners.

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