[TheUnderwritingProdigy]

I've been having a lot of issues lately w/our UCC filings and our trucking merchants. Seems like almost every single day now that we get a request for Subordination or an angry trucking merchant that can't get paid because no factoring company will work w/them given our UCC. It's a catch 22 since if we subordinate, we lose recourse in the event of default, but if we don't we don't get paid anyway because no money is coming in.

What are your guys thoughts in this scenario?

[ryan $]

I've been having a lot of issues lately w/our UCC filings and our trucking merchants. Seems like almost every single day now that we get a request for Subordination or an angry trucking merchant that can't get paid because no factoring company will work w/them given our UCC. It's a catch 22 since if we subordinate, we lose recourse in the event of default, but if we don't we don't get paid anyway because no money is coming in.

What are your guys thoughts in this scenario?

Don't file a UCC until there is payment issues.

[TheUnderwritingProdigy]

Don't file a UCC until there is payment issues.

Okay, so let's say you don't file until there's payment issues, but then in order for the merchant to get their cash flow back up, they need to sign up w/factoring who now will not work w/them since you have an earlier UCC (unless you subordinate). You're back in the same situation.

[BR-Nightmare]

Don't file a UCC until there is payment issues.

This can work, BUUUUT If the factoring company files and you come behind to collect, good luck.

It's a catch 22 all day.

[abfunders]

How big is the file? Especially there were payment issues, can you find a factor that will just work to pay you off, or pay you off in in 3 payments or something? Or you "need" to hang on to the merchant for dear life? I know some factors who will do this.

[happyman]

I've been having a lot of issues lately w/our UCC filings and our trucking merchants. Seems like almost every single day now that we get a request for Subordination or an angry trucking merchant that can't get paid because no factoring company will work w/them given our UCC. It's a catch 22 since if we subordinate, we lose recourse in the event of default, but if we don't we don't get paid anyway because no money is coming in.

What are your guys thoughts in this scenario?

You can add language in the Subordination agreement that will have the factor pay you a percentage of the the A/R

[Olderguy]

Had a client do a LoanMe to get rid of a UCC for A/R factoring.