Host Factoring agreement

Effective Date: The date on which the Host clicks “I Agree” in the sign-up form on the AFf website.

This Short-Term Accommodation Factoring Agreement (“Agreement”) is entered into electronically between:

Accommodation Factor (AF)
 (“AF,” “we,” “us,” or “Factor”)

AND

The Accommodation Host / Property Manager
 (“Host,” “you,” or “Client”)

By clicking “I Agree”, you confirm that you have read, understood, and agree to be legally bound by this Agreement.

1. PURPOSE

This Agreement governs the sale and assignment of certain receivables arising from confirmed short-term accommodation bookings and the advance of funds by AF against such receivables.

2. DEFINITIONS

  • Booking: A confirmed reservation made through an approved accommodation platform

  • Platform: Airbnb, Booking.com, HomeAway, TripAdvisor, or other approved platforms

  • Receivable: The Host’s right to receive payment from the Platform

  • Factoring Advance: Net amount paid to the Host after fees

  • Factoring Period: Time between AF payment and Platform payout

3. SALE & ASSIGNMENT OF RECEIVABLES

By submitting a booking for factoring, you irrevocably:

  • Sell, assign, and transfer all rights to the Receivable to AF

  • Acknowledge that each transaction is a true sale, not a loan

  • Authorise AF to receive payment directly from the Platform

4. ELIGIBILITY & SUBMISSION

To qualify for factoring, you must:

  • Submit a valid booking confirmation

  • Submit verified Platform payout details

  • Update the payout details on the platform to reflect the payout information provided by Accommodation Factor.

    This ensures that, at the end of the factoring period, the accommodation platform pays the full invoice value directly to AF, eliminating repayment risk from the host.

AF reserves the right to approve or reject any submission.

5. FUNDING TERMS

  • Approved advances are paid to the host within 24 hours

  • Payments are made by bank transfer or an approved digital method

  • Advance equals the net payout minus Factoring Fees

6. FACTORING FEES

Booking Duration

Fee

1–4 weeks

3%

5–8 weeks

5%

Fees are deducted upfront.

7. PAYOUT REDIRECTION & REPAYMENT

You agree to:

  • Update Platform payout details to AF’s designated account

  • Allow Platforms to pay AF directly

  • Not redirect or interfere with assigned payouts

8. HOST REPRESENTATIONS

You confirm that:

  • Bookings are valid and legitimate

  • Services will be delivered as advertised

  • Receivables are free from prior claims

  • Platform accounts are in good standing

  • All information provided is accurate

9. HOST OBLIGATIONS

You agree to:

  • Deliver accommodation services in accordance with Platform rules

  • Notify AF of cancellations, disputes, or changes

  • Cooperate with dispute resolution

10. CANCELLATIONS & DISPUTES

If a booking is cancelled, refunded, or disputed:

  • You must notify AF immediately

  • AF may reverse the transaction or offset future advances

  • You may be required to reimburse AF if the Platform payout is denied

11. COMPLIANCE & RISK MANAGEMENT

AF may:

  • Conduct verification checks

  • Suspend services for compliance concerns

  • Report suspicious activity as required by law

12. CONFIDENTIALITY

All non-public business and financial information shall remain confidential unless disclosure is legally required.

13. TERM & TERMINATION

  • This Agreement remains in effect until terminated

  • Termination does not affect outstanding factored receivables

  • AF retains the right to collect assigned payouts

14. LIMITATION OF LIABILITY

AF is not liable for:

  • Platform delays or failures

  • Guest behavior

  • Force majeure events

Total liability is limited to fees earned on the affected transaction.

15. INDEMNIFICATION

You agree to indemnify AF against losses arising from:

  • Breach of this Agreement

  • Misrepresentation

  • Failure to provide accommodation services

16. GOVERNING LAW

This Agreement is governed by the laws of the jurisdiction in which AF is incorporated.

17. ELECTRONIC CONSENT & ACCEPTANCE

By clicking “I Agree” in the sign-up form on the Af platform, you acknowledge that:

  • This Agreement is legally binding

  • Electronic acceptance constitutes a valid signature

  • You waive any requirement for a physical signature

Optional (Recommended for Compliance)

  • IP Address Logged

  • Date & Time Stamp

  • User Account ID

  • Booking Reference (if applicable)