Factoring Law 101: Key Legal, Regulatory, and Contractual Considerations

Robert Dube | Eckland & Blando

Robert “Robby” Dube grew up working in his family’s small business and ranch, so he understands the needs of businesses and works tirelessly to advocate for them in a cost-effective manner. He is a zealous litigator, having briefed, argued, and won numerous motions before both state and federal courts across the country, including maritime and admiralty cases, and has won cases in every stage of the litigation process, including trial. Robby also has deep experience with the factoring industry and the customs industry, litigating for and advising clients across the country.

Robby is deeply familiar with pursuing claims against all levels of government, including bid protests, municipal litigation, challenging terminations for cause, drafting requests for equitable adjustments, and producing government contract compliance guides for businesses. He has engaged in significant Administrative Procedures Act challenges against the federal government’s regulations under the ESA and MMPA at the district and Circuit level, winning unanimous decisions.

Robby is a passionate election and constitutional law lawyer, having zealously and successfully represented citizens and citizen groups across the country wherever their government has tried to take away their rights to referendum, free speech, free association, and more. Recently, Robby has been involved in the fight against foreign ownership of crucial infrastructure projects, fighting to protect national security and the environment.

Robby graduated magna cum laude from the University of Minnesota Law School, where he served as Law Council President and as Executive Editor of the Minnesota Journal of International Law. He also served as the Head Writer for the  law school musical group T.O.R.T. (Theatre of the Relatively Talentless) and led the Orientation Program as a Program Director. After graduating, Robby clerked for Hawaii Supreme Court Associate Justice Richard Pollack.

Daniel J. Cragg | Eckland & Blando

Daniel J. Cragg handles complex litigation matters in a variety of practice areas including factoring, asset-based lending, personal injury, commercial litigation, labor and employment law, as well as admiralty and maritime law. Daniel is a Partner with Eckland & Blando LLP in Minneapolis but handles high stakes cases throughout the country (in association with local counsel). He has been rated by Thomson Reuters as a “Stand Out Lawyer” and “Lead Counsel” for civil litigation, as well as a Super Lawyer. He is AV Rated by Martindale Hubbell.

I. Understanding factoring | 3:00pm – 3:15pm

• Definition and purpose of factoring
• Key differences between factoring and traditional lending
• Common industries and businesses that use factoring

II. Legal framework and regulatory considerations | 3:15pm – 3:30pm

• UCC article 9 and secured transactions
• State and federal regulatory landscape
• Distinguishing factoring from payday lending and usury concerns
• Compliance considerations for factoring companies

III. Factoring agreements: Essential terms and drafting considerations | 3:30pm – 3:45pm

• Recourse vs. non-recourse factoring
• Key contractual provisions: Assignments, warranties, indemnities, and default clauses
• Due diligence and underwriting best practices
• Negotiating favorable terms for clients

IV. Litigation and enforcement issues | 3:45pm – 4:00pm

• Common disputes in factoring transactions
• Fraud risks and legal remedies
• Enforcing factoring agreements: Collections and breach of contract claims
• Case law developments impacting factoring practices