A master service agreement, also referred to as an MSA, is a contract agreed upon by parties that set forth the terms and conditions of any future work or services performed.
Having an MSA in place with your customers is beneficial. It allows you to get to work faster by preventing the lengthy process of negotiating terms and conditions each time new work is awarded. It helps establish and maintain a business relationship between parties that can result in consistent work.
MSA’s are divided into many sections. It is important that you understand any master service agreement you receive from your customers. Always seek legal counsel prior to signing if there are parts of the agreement you do not understand. Below are some of the common sections of an MSA:
Companies that use our invoice factoring services get the added benefit of having our team look over their master service agreements. We’ve worked in several industries for more than 20 years and know what to look for to help make sure your company is protected.
Author: Jill S. & Megan L.