What is Master Service Agreement (MSA)?

A contract reached between parties, in which the parties agree to most of the terms that will govern future transactions or future agreements. It is also sometimes referred to as a “framework agreement”. An MSA is a common feature of an MSP arrangement and typically specifies generic terms such as payment terms, intellectual property ownership, dispute resolution, and liabilities and indemnities in respect of a breach. The detail of the parties’ obligations will be set out in schedules or Service Level Agreements to the MSA. This ensures that key contract provisions are uniform and saves time.

OTHER TERMS BEGINNING WITH "M"

  • Managed Service Provider (MSP)

    A company that takes on primary responsibility for managing an organization’s contingent workforce program. Typical responsibilities of an MSP include overall program management, reporting and tracking, supplier selection and management, order distribution and often consolidated billing. Many MSPs also provide…

  • Management Buyout

    A management buyout is when a company's existing managers acquire a large part or all of the company from either the parent company or from its private owners. Management and leveraged buyouts became popular in the 1980's.

  • Markup

    The percentage added to the temporary employee’s hourly pay rate to reach the bill rate. (For example, a $15.00 bill rate and a $10.00 pay rate would compute to a 50% markup.) The markup percentage includes all selling, recruiting, general,…

  • Max Bill Rates

    Staffing agency bill rates that are capped at a maximum level by job title, agency, or geography. Candidate pay rates are determined by the agency. Also known as “not to exceed” bill rates.

  • MCA ACH Loan Rule of Thumb

    Whatever the MCA Rate Factor dollar amount is over the payback period, your net profit should be more. If not, at the end of that period you will be that much closer to bankruptcy. For example, if the ACH loan…

  • MCA Factor Rate

    The factor rate multiplied by the advance amount equals your total loan obligation to the Merchant Cash Advance provider. For example, if your MCA loan amount is $50,000 and your factor rate is 1.2, your total payback amount will be…

  • Merchant Cash Advance (MCA) or MCA Loan

    A Merchant Cash Advance (MCA) or Advance Loans aren’t technically a loan but are one of the most popular methods used by small business owners who deal with credit cards (restaurants and other retail merchants). Although often referred to as…

  • Mezzanine Financing

    Mezzanine financing is any subordinated debt that is only senior to a company's common stock and junior to any type of secured financing. Mezzanine financing is structured either as debt or preferred stock.

  • Middle Office

    In a staffing context, the Middle Office is part of the tech stack used to underpin the services of a Staffing Firm. The Middle Office is usually where timesheet and other work data are uploaded, processed, and routed. In more…