Factoring and Asset-Based Lending

The attorneys at Eckland & Blando provide experienced representation for businesses involved with forfaiting, factoring, and asset-based lending. We represent factors and other private lenders in these transactions.

Eckland & Blando has significant experience with handling complex financial matters and are skilled at negotiating, providing documentation and legal guidance with all stages of actual and potential litigation involving these matters, including lawsuits involving factoring client-debtors and account debtors. Daniel J. Cragg is one of just a few attorneys in the country to have tried a factoring agreement case to a jury. In one case he won a complete defense verdict for the factor and a judgment in excess of a million dollars on the factor’s counterclaims against the factoring agreement debtor.

Eckland & Blando advises factors through their complex transactions, from drafting factoring agreements and related documents for the inception of the factoring relationship, to providing key counsel if the factoring relationship goes south. This includes advising clients through the aggressive but necessary steps to protect itself from a major loss, including potentially terminating the factoring agreement, foreclosing on collateral, and ensuring account debtors continue to pay the factor.

When merchant cash advances are used in place of traditional financing methods, there may be disputes regarding the nature of the transaction. A borrower may claim a merchant cash advance (MCA) was a traditional loan or that there was not a true sale of future receipts. Our attorneys are familiar with these issues and provide a vigorous defense based on the terms of the agreement.

Asset-based lending involves sophisticated agreements with substantial risk. Eckland & Blando’s experienced attorneys provide sound advice and advocacy for factors or other entities that provide asset-based lending tools or merchant cash advances. Our experience with sophisticated financial transactions and documentation, as well as our expertise with complex litigation matters allows us to deliver cost-effective and relevant legal counsel to our clients.