[TheUnderwritingProdigy]

I just got off the phone w/my collections lawyer and he said to stay away from trucking deals that have factoring since the factoring agreement basically gives the factoring company 100% of the merchants receivables, meaning that there shouldn't "technically" be any receivables even there to sell to an MCA company (since the factoring company assumes 100%).

He's told me that he'll sometimes get cease & desist letters from the factoring company when we try to litigate and that overall they are not very good to collect on. This is unfortunate to hear, especially considering the # of trucking deals we get in every day, and that most of them are utilizing some sort of factoring.

What's everyone's experience when it comes to litigating/collecting on a trucking deal in default that is using factoring?

[Kevin Henry-Seacoast]

Um....you are SOL. If a company has a LOC, ABL, or factoring arrangement the lender/factor has likely filed an all assets lien. If you stacked an advance on top of any of these credit instruments and the company starts going sideways......good luck collecting.

[Sachip24]

first position always has the merchants receivables(if they file a ucc). If you go into 2nd or 3rd or 4th position you are buying receivables the merchant does not own anymore (1st position lender does) so you will run into the same issues trying to legally collect.