Why is it necessary to pledge all the business receivables as collateral on the UCC-1 if the business is not factoring all the receivables?
The term “accounts receivables” may sound like a plural, but technically, it is one class of collateral and cannot be divided.
Further, as far as the factoring company is concerned, there is no collateral value in having recourse only to the non-performing receivables.
© 2007 Sanjeev Aaron Williams & Cashwerks All Rights Reserved
The term “accounts receivables” may sound like a plural, but technically, it is one class of collateral and cannot be divided.
Further, as far as the factoring company is concerned, there is no collateral value in having recourse only to the non-performing receivables.
© 2007 Sanjeev Aaron Williams & Cashwerks All Rights Reserved
No comments:
Post a Comment