Therefore, a freight company will effectively “sell” a number of invoices that have an outstanding balance owed with them by customers to some factoring agency, that will in return for the invoices that they can received, then produce an upfront sum of cash to the freight company.
When they’ve created a UCC filing, these people have a lien against the company’s receivables within the event of bankruptcy. Besides, they also could not take up a new work or manufacturing process, unless they got their payment.