You should continue to protect your interests by making sure your sub's suppliers get paid. Either by joint check or an agreement with the financial service that they will pay the suppliers.
Dianne Jackson Chief Financial Officer
CMSWillowbrook 3108 S. 9th St. Chickasha, OK 73018 405.224.1554 tel 405.590.2641mobile
There are a lot of issues that come into play when receivables are sold --- including lien rights, which may have been assigned (or could be) to the factoring company. We have a submitted question like this on our expert center, which has an answer that may be helpful here:
Subcontractor sold their receivables to a financial services company who is trying to collect from usHere's a clip from some of the answer:
There are a few questions here so I will try and address them all but in order of fact first.
My strong bet would be you have the ability to pay the subs, suppliers and vendors to protect your project. Any of the money after making the payments to the suppliers and other subs that may be owed to the subcontractor would then be in question or fall to the subcontract agreement. You have the right to protect your project. the key thing is to determine if your company signed anything directly with the financials services company....Read more...
Home of the Connection Café.
100 Village Blvd., Suite 200, Princeton, NJ 08540Phone: 609-452-8000 | 888-421-9996 | Fax: 609-452-0474 | email@example.com