[Andy]

In my experience you will only see this from high risk/stacking funders. I have never seen an A paper funder use a COJ. a few of the high risk 2nd 3rd etc position funders require that on all deals, we have even seen it on advances as small as 3k. it would only be filed if merchant defaults, the enforceability of it is debatable

[upperlinecap]

This isn't a stacked deal..no other outstanding loans or advances (that I know of)... Merchant has limited time in business (less than 6 months) so maybe this is part of the reason funder is requesting...But I've never seen this...I guess it is more common practice than I thought..