UCC 9-406 Notice
A letter an MCA funder sends to a business's customers, citing UCC Section 9-406, instructing them to pay the funder directly instead of the business, on the theory that the funder owns the receivables. Customers who ignore a valid notice risk paying twice, so most comply.
Why it matters
It is the funder's fastest revenue weapon and frequently overreaches: sent on disputed positions, claiming more than was assigned, or defective in form. Customers may demand proof of the assignment, and withdrawal of the notices is a standard term in negotiated resolutions.
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