I understand what you are saying Kevin but you missed my point. My discussion has to do with the advance company that collects by ach from the client's operating account could find the factor not depositing anymore advances or reserves into to it until they are paid out. This will dry up all but a minimum amount of available cash and often results in the company going out of business. A lockbox has nothing to do with it. As for the FDIC I thank you for pointing out that the advance company may be breaking a federal law and that will lead to more grief than losing money.
Kevin I would appreciate you comments on my post of creating a hybrid factoring/advance product. We both seem to deal with both and your input would be very valuable to me.
Bob