An intercreditor agreement is an agreement among creditors that sets forth the various lien positions
and the rights and liabilities of each creditor and its impact on the other creditors.

Some of our customers will need to have one or more of their existing banks sign a document
known as an “Intercreditor Agreement”. Here’s the gist of what you need to know.

The intercreditor will only need to be signed if the following two conditions are met:

1. You want to use Apruve to issue credit to customers that are:
   Public companies, Government Agencies, Schools, Non-profits or Large, privately held companies with no single person holding 20% or more of the company
2. You have a current UCC filing on your existing receivables

The two-page agreement, signed between Apruve’s bank and the holder of the UCC filing, loosely states:

That the receivables covered under the existing UCC filing remain under the rights of the current lien holder (your bank).

Any new receivables created by the program with Apruve will be claimed with our bank.

These agreements are commonly done between banks.