Hi DF,

Every now and again people post seeking financing for produce companies. I always suggest selecting lender/funder/factor that understands the industry due to PACA. If the company fails to pay suppliers it can be very problematic. I am seeking more and more PACA violations on a weekly basis. The latest was a $19Mil violation where the company failed to pay 145 suppliers. If anyone advanced money on this or factored the AR, they would most definitely got caught up in a VERY ugly situation.

Under this violation, PACA steps in and collects the 19Mil from customers to pay the suppliers. It bifurcates the company and their lender/factor.

Again..... If you are financing anything produce related..... Do your homework! Chose partners that understand the industry and PACA.

KH