The purpose of this study is to analyze: 1) How is the legal basis of factoring agreements in accordance with existing rules according to Indonesian law?; 2) How is the Impact of Factoring Agreements on Credit Risk?; 3) How Does the Factoring Agreement Impact the Company's Cash Management?. The research method used is empirical juridical with a statutory approach, concept approach, and case studies. The results showed that: 1) The legal basis in factoring agreements is regulated into two types, namely administrative and substantive legal arrangements. Administrative legal arrangements are contained in Article 6 letter l of Law No. 7 of 1992 which has been amended by Law No. 10 of 1998, hereinafter referred to as the Banking Law, Presidential Financing Regulation, and Regulation of the Minister of Finance of the Republic of Indonesia No. 84 / PMK.012 / 2006 concerning Financing Companies. While the Substantive Legal Basis which is divided into Pure Substantive, namely Article 1338 BW is related to the principle of freedom of contract. So that the parties are free to make an agreement provided that they have fulfilled the conditions for the validity of the agreement as contained in Article 1320 BW, namely agreement, competence, certain objects, and permissible causation. In addition, there is a procedural Substantive Legal Basis in article 613 BW related to cessie and subrogation based on Articles 1400 BW, 1459 BW, 1491 BW, 1493 BW, 1495 BW, 1533 BW, 1534 BW and Article 174 KUHD-Article 177 KUHD. 2) Factoring agreements can have a significant impact on a company's credit risk and cash management. While factoring can increase liquidity and reduce credit risk, companies also need to consider the costs and concentration risks associated with these financial instruments. Therefore, the decision to use factoring must be carefully considered and based on the specific needs and financial condition of the company. 

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