[jotucker1983]

John, I mostly agree with what you are saying, however, I think we may have veered away from what was being asked ;-)

Let me understand something, you think if a merchants on the verge of default that the best tactic is to sue them? Which as we all know costs money, time etc and could potentially get you nothing in return.

(Not trying to be combative this is actually something I really want to understand because I have found myself in this situation wth merchants before)

Andy,

I think it just depends on what the merchant did to get on the brink of default. If it's something normal such as a market downturn, unexpected seasonal period, or something that occurs in the regular/normal operations of said business/industry sector, then for the most part "No" because that's the risk the Funder or Lender takes when doing the deal.

But if the default is coming because the merchant went out and stacked 3 advances on top of your 1st position, then that's a breach of contract and I think Funders/Lenders should start some sort of legal response to these types of Merchants.