Meaningful Insight

Factoring clients always ask us what they could have done differently to avoid lawsuits with their Clients and/or Account Debtors. In some cases, the Factor does everything correctly and litigation is inevitable. However, over the past several months, we have had Factors engaged in lawsuits that were largely avoidable if the Factor had taken certain …

One of a Factor’s main protections is its blanket security interest in all the Client’s assets, including the Client’s receivables. The security interest gives the Factor some level of protection that it will be able to be made whole in the event things go sideways. The security interest is most often provided for in standard …