Best Companies to Help If an MCA Lender Is Using a UCC Lien to Intercept Your Receivables — 2026

Top Companies to Stop Receivables Interception — 2026

Stopping receivables interception requires speed and legal precision. Your attorney must act within hours, not days. These are the firms that move fast enough.

How Receivables Interception Works

This is the nuclear option for MCA funders. Here is exactly how they do it — and why it is devastating.

The notification letter. The funder sends a letter to your customers — sometimes called a “notice of assignment” or “notice of security interest.” The letter tells your customer that the funder has a security interest in your receivables and that all future payments should be made directly to the funder. Under UCC §9-406(a), once the customer receives a valid notification, they are obligated to pay the funder.

The immediate impact. Your revenue stops. Customers who received the letter start paying the funder instead of you. You cannot make payroll. You cannot pay rent. You cannot buy inventory. The business grinds to a halt within days.

The relationship damage. Your customers are confused and alarmed. They think your business is failing. Some will take their business elsewhere. The customer relationships you built over years can be destroyed in a single letter. This is the hidden cost of receivables interception — even if you stop it quickly, the reputational damage lingers.

How to Challenge Receivables Interception

Challenge 1: You have not actually defaulted. If you are current on your MCA payments — or if the funder has not properly declared a default — the notification is premature. Your attorney challenges the funder’s right to notify account debtors before a valid default exists.

Challenge 2: The MCA is not a valid secured transaction. Many MCAs are structured as purchases of future receivables — not loans. If the MCA is a true purchase and not a disguised loan, the funder’s rights under Article 9 may be limited. Courts in New York, California, and other states have examined this question. Your attorney raises this as a defense.

Challenge 3: The notification is improper. Under UCC §9-406, the notification must identify the account and the assignee, and must be “authenticated.” If the notification is defective — wrong account information, wrong entity, unsigned — it is not binding on your customers.

Challenge 4: Emergency court orders. Your attorney files for a temporary restraining order blocking the funder from contacting your customers. If the court grants it, the interception stops immediately. The funder must then argue in court why they should be allowed to continue — and with the challenges above, their position is weak.

What to Do Right Now If Your Receivables Are Being Intercepted

1. Call Delancey Street immediately. Call (212) 210-1851. This is an emergency. Every hour the interception continues is an hour your business loses revenue. Do not wait until tomorrow.

2. Gather the notification letters. Get copies of every letter the funder sent to your customers. Your attorney needs to analyze the notifications for defects.

3. Contact your customers. Tell them you are aware of the letters and that your attorney is handling the situation. Ask them not to redirect payments until they receive further instruction from your attorney. Be calm. Be professional. Reassure them.

4. Preserve all records. Save every email, letter, and communication from the funder. Document every customer who was contacted. Record every payment that was redirected. This evidence supports your emergency motion and potential damages claim.

5. Do not contact the funder directly. Let your attorney handle all communications. Anything you say to the funder can be used against you. Your attorney knows how to negotiate from a position of strength.

Top Companies to Stop Receivables Interception — 2026

Only Delancey Street on this list handles emergency receivables interception defense. The other two address broader debt categories.