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What is a Notice of Assignment?

• What is a Notice of…

A factoring contract can contain many parts, but few are as important as the Notice of Assignment.

What are the parts of a notice of assignment.

A notice of assignment contains a few standard parts. First, it informs your customers that you are factoring your invoices and that your factoring company has been assigned as the payee for your accounts receivables. Next, a notice of assignment provides your customer with an updated remittance address for all current and future payments to be sent to. Third, it contains explicit instructions that all payments should be made to the factoring company’s remittance address only, and that no other payments should be made to any other address without explicit permission from the factoring company. It also contains verbiage that states that payments made in conflict to this notice of assignment will not be considered to have discharged a customer’s obligation for payment to the factoring company. Lastly, the factoring client signs the notice of assignment to prove it is valid.

Why do my customers need to know that I’m factoring?

The right to receive payments for amounts owed is one of the main protections a factoring company has in the factoring process. It is an essential part of almost every factoring program. In order to assure that payments are directed appropriately, a factoring company must contact a customer to verify that the notice of assignment has been accepted and the remittance address has been updated.

Why does my factoring company receive payments for invoices that weren’t factored?

A notice of assignment gives your factoring company the right to collect for ALL payments owed to you by your customer. Some factoring companies require that you factor every invoice for your customers, making this a non-issue. However, if you are working with a factoring company that allows you to pick and choose which invoices to factor for a customer, your factoring company will also receive payments for those unfactored invoices.

This happens for two reasons. First, allowing multiple remittance addresses for a payee exponentially increases the chance of a misdirected payment being made. Second, asking the customer to shoulder the additional workload of keeping track of which payments should be made to which remittance address would make invoice factoring unattractive for many customers, and thus limit the number of companies willing to work with a business that was factoring. All factoring companies have policies to efficiently deal with unfactored payments when they arrive.

What happens if I receive a payment that should have been sent to my factoring company?

Most factoring companies understand that accidents happen, and mistakes will be made. If an error in payment occurs in good faith, factoring companies have processes in place to deal with the issue. Firstly, it is important that a factoring client does not deposit the payment into their account, but rather they should immediately notify their factoring company of the errant payment and send it immediately to their factoring company. If a factoring client fails to do so, or attempts to hide the payment from their factoring company, then that client will be responsible for a misdirected payment, which often carries heavy penalties in the factoring contract.

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Learn About Notice of Assignment for Invoice Factoring

In a  factoring  relationship, you agree to assign your selected receivables to the factoring company. By advancing your  cash  against your invoices, the factor has purchased the right to collect amounts due from your customers. The Notice of Assignment is a critical part of your factoring paperwork as it reflects the change in invoice ownership.

What is a Notice of Assignment?

The Notice of Assignment is a simple letter the factoring company sends to your customers whose invoices you are factoring. In writing, the notice informs your customers that the accounts receivable is assigned, and future payments should be made payable to the factoring company. The notice will also include a remittance address so your customer can change their payment information.

The Notice of Assignment legally explains to your customers that any payments they make to you instead of the factor will not satisfy their obligation. The factoring company may hold your customers liable for misdirected amounts. This may occur if your customers choose to ignore the notice or fail to update payment information.

Many factors will require your customers to sign and return a copy of the notice to acknowledge receipt. This is not always required, though. Instead, the Notice of Assignment may include language that considers your customer’s continued use of your services to constitute an agreement to the notice. In addition, the factor may only revoke a Notice of Assignment if they send a signed and notarized release notification to your customers. They will do so if you choose not to factor that account any longer or you end your factoring relationship. In either case, the account must have no outstanding balance.

What Programs Don’t Use a Notice of Assignment?

Financing programs that do not use a notice of assignment include non-notification factoring and sales ledger financing.

Non-notification factoring is similar to regular factoring, but with a few key differences. Instead of sending a conventional Notice of Assignment to customers, the factoring company informs them of a new payment address using the company’s regular letterhead. This allows the customer to still send payments to the new address without being aware that it belongs to the factor. To qualify for non-notification factoring, companies typically need to have monthly revenues of at least $300,000, a track record of over a year, reliable financial reports, and no serious financial difficulties.

Sales ledger financing operates like a line of credit based on outstanding receivables. Companies can access up to 90% of their outstanding receivables at any given time without the need to submit a factoring schedule of accounts for each transaction. Although the finance company still handles payments, the customer does not receive a Notice of Assignment. Instead, they receive a letter indicating a change in the payment address. Sales ledger financing offers greater flexibility compared to non-notification factoring, with daily rates allowing for better cost control. The qualification requirements for sales ledger financing usually include monthly revenues of at least $300,000, a track record of 1-2 years, reliable financial reports, good receivables management systems, and no serious financial difficulties.

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Why do Factoring Companies Notify Your Customers?

The Notice of Assignment is a vital form of protection for a factoring company. It protects the factor in case the  business owner  (the factor’s client) receives the payment instead of the factoring company.

In a best-case scenario, the notice serves to inform every party in a factoring transaction of their rights and responsibilities. It also gives your customer the appropriate address to make account payments, allowing your factoring relationship to continue smoothly.

In a worst-case scenario, a factor can recover unpaid amounts from your customer should they continuously pay over notice or not pay at all. A Notice of Assignment is evidence in any legal proceeding — from a demand letter for payment to a full-fledged lawsuit — that asserts the factor’s standing and rights to payment.

What Will Your Customers Think?

Customers may have concerns or questions when they receive a letter regarding the use of invoice factoring. It’s understandable that they may be unsure or unfamiliar with this financing tool. As a business owner, it’s important to address these concerns and communicate with your customers effectively.

First and foremost, it’s essential to acknowledge that invoice factoring is a common practice utilized by many small and midsize companies to finance their operations and facilitate growth. Chances are, your customers are already aware of this financing method and how it works.

When discussing invoice factoring with your customers, emphasize the benefits it provides to them. By using factoring, you can offer them extended payment terms, such as 30- to 60-day terms, while still ensuring excellent service. This enables your customers to utilize their available cash resources more effectively. Without factoring, providing extended payment terms might be challenging, especially for businesses experiencing growth.

It’s crucial to assure your customers that little is changing in terms of the services and support your company provides. Reassure them that they will still have the same level of communication and engagement with you and your employees as before. Highlight that despite factoring being implemented, your commitment to their satisfaction remains unchanged.

Address the misconception that factoring indicates financial trouble within your company. Remind your customers that factoring is a versatile tool used to achieve various goals and objectives, just like other forms of financing such as loans or lines of credit. Factoring simply serves to smooth out your cash flow and support your business’s overall financial stability and growth.

Overall, open communication with your customers is key. Provide them with transparency and reassurance, explaining the benefits of factoring and emphasizing that it is a common and established financing practice. By effectively addressing their concerns, you can foster trust and maintain strong relationships with your valued customers.

Why a Notice of Assignment Matters To You

You will receive a copy of the Notice of Assignment that the factor sends to your customers. While the notice is to inform your customers, it also has an important implication for you as well.

As your  factoring agreement  explains, payments your company receives from your customers over notice are payable to the factoring company. Even in the smoothest transition, you may receive payments sent before receipt of the notice or released before your customers’ updated their payment system. There will likely be a provision explaining the procedure for sending misdirected payments to the factor in these cases. Misdirected payments are usually sent by overnight check or via bank transfer.

However, you may be responsible for additional penalties and fees if your customers continue to pay over notice, and you deposit those payments into your account. In addition, you may end up owing more, depending on fee structure, due to the extra time it takes for the factor to receive payment. Some factors include a misdirected payment fee in the  factoring agreement  that you will have to pay if you fail to return misdirected payments to the factor. Therefore, fees may be higher if you are responsible for the misdirection.

As with any legal document, be sure to be fully aware of the language used within the Notice of Assignment. Be mindful of your customers’ responsiveness to the notice. Take action immediately if you realize that any of your customers are not sending their payments on time. This transparency solidifies your factoring relationship, builds trust with your factor, and protects your interests.

What if the Payment is for an Invoice I Didn’t Factor?

When you assign your customers’ receivables to your factoring company, you agree to direct all payments to the factor, even for invoices that you did not factor. This eliminates complications for all parties and ensures that the factoring company receives every payment they should. Without an all-inclusive assignment, your customers would receive a notification every single time you factor an invoice. They would have to retain two addresses on file, increasing the likelihood of misdirected payments.

Your factoring company will have a straightforward procedure in place to address non-factored payments. This may include applying those payments to open invoices and sending you the difference or the total amount in a regularly scheduled reserve release. Stay prepared by asking your factor about their policies surrounding non-factored payments.

Factor Finders can help you find the right factoring company  for your  invoice factoring  needs.  Contact us  to learn more about our factoring services for every industry and to get started today.

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Factoring Notice of Assignment (NOA): Everything You Need to Know

A factoring notice of assignment (NOA) is usually required when you factor your invoices. Rest assured, NOAs are quite common in business and aren’t a cause for concern. However, it helps to understand what they are and how they work so that you can explain them to your customers as needed.

Assignment of Debt Explained

Companies transfer debt, along with all associated rights and obligations, to third parties all the time. One example of this occurs with collection companies. In these cases, the business, also referred to as the creditor, sells its uncollectable balances or assigns specific debts to the collection company. The collection company is then authorized to collect those specific balances on behalf of the creditor.

Assignment of debt may also come into play when businesses outsource their receivables and leverage certain types of funding, among other situations.

What Does Notice of Assignment Mean?

The customer, also referred to as the debtor, must be informed when a creditor assigns their debt to a third party. The document used in this process is referred to as a notice of assignment of debt.

What is a Notice of Assignment in Factoring?

When you leverage invoice factoring , you’re selling an unpaid B2B invoice to a factoring company at a discount. In exchange, you receive up to 98 percent of the invoice’s value right away and get the remaining sum minus a small factoring fee when your client pays. This means you’re not waiting 30, 60, or more days for payment. This cash flow acceleration helps businesses bridge cash flow gaps caused by slow-paying customers, seasonality, rapid growth, and more. Plus, the cash can be used for anything the business needs. This unique process means businesses can receive immediate funding without creating debt like other funding sources.

A notice of assignment is required in factoring because you’re assigning debt to a third party – the factoring company – and the customers involved need to know.

The Role of Notice of Assignment for Cash Flow

Invoice factoring stands out as a solution for businesses seeking to improve their cash flow. When a company decides to use invoice factoring, it enters into a factoring relationship, where accounts receivable and financial rights are handled differently than usual. This process involves the NOA, a pivotal document in factoring transactions. Essentially, NOA is a simple letter informing customers that the payment terms have changed and future payments should be made payable to the factoring company.

This notification ensures that there are no misdirected payments, which is a critical aspect when managing accounts payable and securing immediate cash. By using factoring, businesses can access working capital, which reduces the strain of slow-paying customers. It’s important for factoring clients to understand how factoring companies notify your customers and the implications of this process. The factoring contract typically outlines these details, ensuring that every party in a factoring transaction is aware of their responsibilities, especially regarding remittance addresses and payment information.

Factoring services offer an alternative to traditional lines of credit, providing businesses with high advances at low rates. This method is beneficial for companies that demand longer payment terms from their clients. By transferring the right to collect payments to the factoring company, the business can focus on its core operations while the finance company handles the receivables. Understanding the benefits of factoring and effectively communicating them to your customers may improve the factoring process and maintain healthy customer relationships, even when introducing new financial arrangements like invoice factoring.

The Importance of a Notice of Assignment in Factoring

Notice of Assignment in invoice factoring keeps your customers in the loop so they know who is collecting and why. It also lets them know where to send their payments. This streamlines the process and helps ensure there’s no confusion about where payments need to go.

Elements of a Factoring NOA Document

Each factoring company words its NOA a bit differently, but NOAs usually include:

• A statement that indicates the factoring company is now managing the invoice or invoices.
• A notice that payments should be made to the factoring company.
• Details on how payments can be made, including addresses, bank details, or payment portal information.
• What will occur if payments are sent to the business instead of the third party.
• A signature from someone at your business to show your customer that the NOA is authentic and a signature space for your customer to sign indicating that they’ve read and understand the document.

How Do Factoring Companies Notify Your Customers

A factoring notice of assignment is usually sent to customers by U.S. mail, though sometimes factoring companies use other delivery services or even digitize the NOA.

What Will Your Clients Think of You Factoring Your Invoices?

Sometimes, businesses that are new to invoice factoring have concerns about how customers will react to factoring or receiving an NOA. However, it’s usually not a cause for concern.

Although your factoring company isn’t an outsourcing company, it behaves quite similarly when collecting invoices. Nearly 40 percent of small businesses outsource at least one business process, Clutch reports. That means a significant portion of your customers already have some experience engaging with third parties. Furthermore, invoice factoring is growing in leaps and bounds and is expected to grow by eight percent in the coming years, per Grandview Research . Many of your customers already have experience with factoring or will very soon. Because most businesses have some exposure to factoring or will in the near future, it’s generally seen as an ordinary business practice – nothing more, nothing less.

However, even if factoring is entirely new to your customers, how they respond to your decision is often determined by how you present it. For instance, it accelerates payments without putting pressure on your customers to pay faster. It has benefits for them, too, and can help improve the relationship. This alone can actually help some businesses win bids or attract new customers. Explaining it to them this way can help soothe any concerns if customers come to you with questions.

How to Ensure Your Customer Relationships Are Protected

Most factoring companies will take good care of their customers because they are a reflection of you. Your repeat business helps ensure they’ll have repeat business. However, reviewing a factoring company’s testimonials and success stories is always a good idea to understand better how they operate before you sign up.

It’s also essential to work with a company like Viva that doesn’t send mass notifications to all its customers. We only notify those who are debtors on the invoices you’d like to factor to eliminate any confusion.

Lastly, it’s better to work with a company that provides you with 24/7 access to your account so you can see what’s paid and outstanding at a glance and can make decisions about orders using real-time data.

Request a Complimentary Invoice Factoring Quote

At Viva Capital, we always provide white glove care to the businesses we serve and their customers.As part of our service, we handle the Notice of Assignment with professionalism. Our collection experts make it easy for your customers to manage their bills and are happy to answer their questions. You’ll also have access to your personal Customer Account Portal so you can make informed decisions on the fly and always know what’s outstanding. To learn more or get started, request a complimentary invoice factoring quote .

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13 February 2023

Notice of Assignment in Factoring in the U.S

When a business uses invoice factoring, they transfer ownership of its accounts receivable to a factoring company, which then has the responsibility to collect payment for those invoices.

Therefore, a document is issued to alert its customers of this. This is known as a notice of assignment.

Meaning of Notice of Assignment

A notice of assignment is a document that notifies clients that a factoring company has acquired ownership of their accounts receivable, or invoices, from the original business.

The notice's objective is to alert customers to the ownership change and specify who should receive payments.

Importance of Notice of Assignment

A notice of assignment is vital because it officially notifies customers that the ownership of an invoice has changed hands and that they should now direct payments to the factoring company.

The notice helps ensure that payments are sent to the appropriate parties , avoiding misunderstandings and potential conflicts and preventing uncertainty.

In the event of a disagreement, having a detailed and official notice of assignment can safeguard the legal interests of both the company and the factoring company.

Impact of Notice of Assignment on Businesses

The possible impacts faced by businesses by using a factoring company and sending their customers a notice of assignment are:

1. Enhanced customer relationships: By providing clear and official notification to customers of the change in ownership of invoices, a business can help maintain and strengthen its relationship with them.

2. Improved cash flow: By transferring ownership of invoices to a factoring company, a business can receive payment more quickly and improve its overall cash flow.

3. Increased operational efficiency: By using a factoring company to manage the collections process, a business can free up internal resources and focus on its core operations, leading to increased efficiency.

4. Reduced risk: By transferring the responsibility of collecting payment to a factoring company, a business can reduce its exposure to the risk of non-payment and bad debt.

However, before deciding to utilize factoring , it's crucial to consider any potential drawbacks, such as losing control over the collection process and the expense of the factoring service.

Factors Covered in a Notice of Assignment The main sections covered are:

• The company's accounts receivable have been transferred to a third-party financial institution, and payment should now be made to them
• The customer should now send payments to a new address, typically a secure payment processing location
• The customer will be responsible if they make a payment to the wrong address

Information in a Notice of Assignment

In a factoring notice of assignment, the following details are covered to notify the business’ customer about the transfer of ownership of accounts receivable:

• Particulars of the accounts receivable being assigned , including the amount and invoice numbers
• Details of the factor and the client/debtor
• Specifics of the assignment of the accounts receivable, including the effective date and any conditions of the assignment
• Instructions for the customer on how to direct future payments to the factor
• Any other relevant terms and conditions of the factoring agreement

What Happens When an Obligor Doesn’t Receive Notice of Agreement

A business that sells its accounts receivables (invoices) to a third-party factor must send a notice of agreement to its customers.

The purpose of the notice is to inform the customer that the factor has taken ownership of the invoice, and the payments should be made directly to the factor instead of the business.

If the customer does not receive the notice, they may continue to make the payments to the business, leading to confusion, delayed payments to the factor and potential disputes.

In some cases, the customer may have the right to demand a return of the payment made to the factor or stop payment if the notice of assignment was not correctly given.

How to Receive Notice of Agreement

A factoring notice of agreement is typically provided by the factoring company or third-party factor that has purchased the accounts receivable (invoices) from the business.

The notice is usually generated by the factor and given to the business to send to its customers.

The business may also be responsible for ensuring that the notice of assignment is delivered correctly to its customers.

Some factoring companies provide templates or sample notices that the business can use.

Requirements for a Notice of Assignment

To obtain a notice of assignment (NOA) from a factoring company, the following requirements are necessary:

• Monthly revenue of at least $300,000
• A stable financial track record of 1-2 years
• Accurate and trustworthy financial reports
• Effective management of accounts receivable
• No significant financial difficulties

1. Who Sends a Factoring Notice of Assignment? A factoring notice of assignment is typically sent by the business that has sold its accounts receivables or invoices to a third-party factor or factoring company.

The factor usually provides the notice of assignment, and the business may have to sign a factoring agreement with the factor to obtain the notice.

The notice informs the business’ customers that the factor has taken over the ownership of the invoices, and the payments should be made directly to the factoring company instead of the business.

2. How Much Does a Notice of Assignment Cost? The cost for issuing a notice of assignment in factor can differ based on various elements, such as the amount assigned, the state where the assignment is taking place and the particular provisions of the assignment agreement.

This cost may include legal fees, filing paperwork fees and other administrative expenses. It's crucial to examine the assignment agreement thoroughly to determine the precise cost and be aware of any additional fees that may be incurred.

3. How Long Does a Notice of Assignment Take? The duration of issuing a notice of assignment in factoring can differ based on particular circumstances. Usually, the process can take anywhere between a few days to weeks.

The length of the time may be influenced by factors such as the state in which the assignment is getting issued, the complexity of the assignment agreement and the accessibility of relevant parties.

Moreover, the time needed for the notice of assignment may be affected by any legal challenges or hindrances.

4. Does Notice of Assessment Mean You Owe Money? In the United States, a notice of assessment usually implies that you owe money to the government.

However, it is contingent on particular circumstances. The Internal Revenue Service (IRS) sends out the notice of assessment to inform taxpayers of any modification to their tax obligations.

If the notice displays an increase in the amount owed, it implies that the taxpayer has an outstanding balance with the IRS and should pay it promptly to prevent further interest and penalties.

On the other hand, if it shows a decrease in the amount owed, it showcases that the taxpayer has paid more taxes than required and may be eligible for a refund.

It is, therefore, always advisable to thoroughly examine the notice and to get help from a professional.

5. Is Notice of Agreement a Proof of Debt? A notice of agreement alone is not considered proof of a debt. The document merely outlines the terms and conditions agreed upon by the parties involved.

It is not enough evidence to confirm the presence of debt but rather serves as a record of the agreement between the parties.

To establish proof of debt, other financial documents such as receipts, invoices or other documentation may be necessary.

The specific requirements for proving a debt depend upon the type of debt and the laws of the jurisdiction where it is being established.

6. What is a Letter of Release? A letter of release from a factoring company is a declaration that a debt has been satisfied and is no longer the company's responsibility.

In factoring, a business sells its accounts receivable to a factoring company for a fee to receive cash quickly.

Upon receiving the payment on the accounts receivable by the business’ customer, the factoring company issues a letter of release, confirming that the debt has been fully paid off and the company is no longer obligated to it.

The letter serves as proof that the debt has been fully resolved. It can be used to clear the debt from the business's financial records.

The specifics of the letter of release, including the terms and conditions, will depend on the particular factoring agreement and the laws in the jurisdiction where it is formed and drafted.

Siddhi Parekh

Finance manager at drip capital.

Table of Content

• Information in a NOA
• What Happens When an Obligor Doesn’t Receive NOA
• How to Receive NOA
• Requirements for NOA

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Bankers Factoring an Employee-Owned Accounts Receivable Factoring Company

July 25, 2023 By Chris Curtin

What is a Notice of Assignment in Factoring?

Why is a factoring notice of assignment (noa) important when selling your a/r.

Table of contents

What is a notice of assignment letter, what is included in the factor financing noa, how does factoring noa impact my customers, benefits of noa factoring:, factoring arrangement: assignment of accounts receivable, notice of assignment factoring, bankers factoring difference, what is a notice of assignment in factoring.

It is a letter that informs the business owner’s customers of your relationship with a factoring company. The notice of assignment letter is the first communication between the invoice factor company and the account debtor (your customer). The factoring contract spells out the change in invoice ownership.

The invoice factoring companies will send your customers, also known as debtors, a notice of assignment (NOA) letter. It will be sent immediately when you sell your unpaid receivables. The letter is also a standard document in factoring agreements. And accounts receivable (A/R) invoice factoring is a common financial product to accelerate the cash flows of small businesses.

Factoring invoices is a time-tested business funding solution to support operations and fund growth plans. Partnering with factoring companies allows your business to receive fast cash flow by selling invoices. Moreover, sending the NOA letter is a critical step to communicate your A/R has been assigned and is payable to the factoring company.

You can also read how factoring companies buy accounts receivable .

Complete Bankers Factoring online funding application to begin your debt-free funding process including Bad Debt Protection.

Contact Bankers Factoring to learn about the factoring NOA process and how we can provide consistent cash flow funding. We partner with you and your customers to provide an elite program for your business success.

A Notice of Assignment (NOA) is a letter that informs account debtors their creditor (our client) is factoring invoices under the Universal Commercial Code (UCC) . And invoice factoring is an agreement to assign your accounts receivable (A/R) to a factoring company. So the letter communicates that a third party (factoring company) is managing and collecting your A/R. An assignment letter notifies your customers or account debtors of the transfer in ownership.

The NOA letter is the first-time customers will learn that you are utilizing factor financing. But selling your unpaid invoices to a factoring company will not concern your customer. In addition, invoice funding is a popular financing vehicle to cover operating expenses and accelerate sales growth.

Keep reading, Factoring Company: What it is and Your Best Choice .

Factoring NOA letters are standard documents sent to customer (debtor) accounting departments. Assignment letters include language regarding the arrangement:

• NOA letter informs your customers that a factoring company is managing receivable invoices
• The notice includes language stating the factoring company has the right to payments
• Your business A/R has been assigned to a third party, and payment is transferred to them
• Updated information for making payments (remittance) to factor
• Notice of assignment letters include legal clauses related to the assignment

Assignment companies send NOA to establish their ownership and management position for your receivables. That’s because letting your customers know about the receivable assignment helps them make timely payments. Moreover, the factor provides specific remittance instructions to ensure an easy transaction for all parties involved.

Keep reading How Does a Factoring Company Work ?

Selling your receivables can cause stress about sending an NOA letter to your customer. However, invoice factoring demonstrates to your customers that you are serious about your operational performance by establishing financing lines. In fact, the US factoring market valued at $3.9 billion in 2022 shows how many companies use invoice services ( IBISWorld ).

• Streamlined accounting process between your debtor’s accounts payable team and the factoring company.
• Partnering with a factoring company demonstrates your plans to grow your company and shows you are serious about your finances.
• Invoice factoring companies enhance customer service relationships by providing highly skilled professionals to communicate with your customers.

If your company works with commercial customers that demand extended credit terms, a factoring facility can help your cash flow.

Keep reading How Factor Financing Impacts Customer Relations .

A/R factoring is a type of business funding that injects working capital into companies with slow-paying customers. However, factoring agreements are not debt-financing like business loans and do not dilute your equity position. To know more, keep reading How to Finance Your Business Without Giving Up Equity .

Assigning accounts receivable lets your account debtors know you have transferred ownership of A/R. By selling your unpaid invoices, you receive two cash installments.

The initial cash advance, the first installment, ranges from 80 to 93% of your total A/R purchase value. And the second and final installment, rebate, or discount releases the remaining balance, less our fee. Therefore, the assignment of accounts receivable removes cash flow obstacles by bypassing the lengthy receivable period.

Factoring your receivables is a great solution to overcome cash flow struggles. Additionally, factoring companies work closely with your customers allowing you to focus on your business. But with over 800 factoring companies in the US, finding a factoring company can be difficult. Bankers Factoring provides the best service with 20 years of experience. We make sure to communicate well with our customers while protecting our client’s interests.  

Notice of assignment letters (NOA) can be scary for business owners unfamiliar with invoice factoring services. Most startups, small businesses, and companies extend credit terms requiring commercial funding. Offering net 30 to 120-day payment terms places cash flow problems for most entities.

Assignment letters should not turn you away from alternative financing. Your customers are familiar with NOA factoring and have other customers working with factoring companies.

Worrying about assignment letters only prevents your business from achieving its full potential. Bankers Factoring provides the best non-recourse factoring services and manages customer relations that enhance your business profile. Furthermore, we take on the credit risk from unpaid receivables while providing up to 93% cash advances. Accelerating your receivables cycle can unleash new sales growth and operational performance. Utilize free cash flow to improve profitability.

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What is a Notice of Assignment?

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When you enter a factoring contract, you agree to sell your invoices, or accounts receivable, to a factoring company or third party that gives you a cash advance. This third party will then become your company’s collection department on these invoices. To notify your clients of this change of invoice ownership, the financial provider will send them a Notice of Assignment (NOA).

If you’re considering factoring your accounts receivable, you may be wondering what an NOA contains and what effects it may have on your customers and business. In this guide, we’ll cover the components of an NOA, how your factoring company sends them, and their role in the factoring process.

What is a NOA in Factoring?

A notice of assignment is a simple letter from a third party to your customers. It legally explains that a change of invoice ownership has occurred, informing your clients that a third party (bank, factoring company, financing company) will now manage and collect accounts receivable. The NOA will provide a remittance address so customers can update their payment information. The purpose of this communication is to notify your customers of a change in the collection process.

What Is a Notice of Assignment?

Understand how implementing a Notice of Assignment with Porter Capital’s factoring services can fast-track your receivables!

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How Do Factoring Companies Notify Your Customers?

Factoring is more common than ever and clients range from NYC modeling agencies and namesake branded product line manufacturers, to small startup companies selling gourmet food items. No company is too large or too small to factor their invoices and many work with big box stores that demand longer payment terms to have products on their shelves. These 90 to 120 day payment terms can make factoring a necessity for smooth cash flow.

Your customers will receive the NOA as a letter in the mail to sign and return. Your business will also receive a copy of this letter. Ensure you fully understand the language used in the NOA and your responsibilities in the transition process. Sometimes business owners worry about their customers’ reactions to receiving an NOA. Invoice factoring is becoming an increasingly popular and acceptable means for financing businesses across many industries, so your customers may already be accustomed to the process. You can alert your clients about a coming NOA, proactively resolving any questions or concerns that may arise.

Why Is a NOA in Factoring Important?

When you enter a factoring contract, you agree to sell the intangible financial rights to your invoices and receive cash up front for those invoices. Because the rights are intangible, factoring companies need legal language that outlines ownership of the AR. Once the NOA is completed, a business receives the cash advance while the factor waits for invoice payments. The NOA is a critical part of the financial relationship and protects the financing provider in the event of misdirected payments. An NOA ensures all parties are aware of their responsibilities throughout the factoring process so everyone can enjoy the benefits.

Components of a NOA Document

The NOA document will contain a few vital pieces of information, including:

• Notification that accounts receivable have been assigned and is payable to a third party
• An updated payment address.
• An explanation of customer liability in the event of a misdirected payment.

Each component of the NOA ensures the factoring relationship runs smoothly by giving customers the information they need to make correct payments. It may also outline steps for your company to take if you receive a misdirected payment.

Contact Porter Capital for a Factoring Quote

When you need to improve your cash flow, consider invoice factoring with Porter Capital. With over 30 years in the business, we can offer you and your customers the reliable and trustworthy services you expect and deserve. We will help you find the best solutions for your specific business demands, enabling you to enjoy greater stability and flexibility.

Work with a trusted factoring company to expand your business, get ahead of the competition and increase customer satisfaction. Contact us online today to receive a quote for our factoring services.

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THE NOTICE OF ASSIGNMENT: A REFRESHER COURSE

Allen J. Heffner Nov 20, 2023

The Notice of Assignment is probably the single most important document for a Factor. Understanding what needs to be included in the Notice of Assignment, how to send it, and who to send it to can mean the difference between getting paid and not. Despite the fact that every Factor is (or should be) familiar with legal requirements relating to Notices of Assignment, we still find that many of our factoring clients who end up in litigation make basic mistakes relating to their Notices of Assignment. The article focuses on what information needs to be included in the Notice, who the Notice should be sent to, and how the Notice should be delivered.

What needs to be included in the Notice of Assignment?

To be effective, there is certain information that must be included in the Notice of Assignment. The Uniform Commercial Code (“UCC”) requires that the notice must:

• Notify the Account Debtor that the amount due or to become due has been assigned;
• Notify the Account Debtor that payment is to be made to the Factor;
• Reasonably identify the rights assigned; and
• Be signed by the Factor or its client.

The Notice of Assignment should also include a remittance address so the Account Debtor is informed how and in what manner the Factor should be paid.

Additionally, while not explicitly required under the current version of the UCC, Factors should include language in their Notice of Assignment that: (i) the Client has assigned all of its present and future accounts receivable to Factor; (ii) the Factor holds a first priority security interest in all of the client’s accounts receivable; and (iii) all payments owing to the client must be paid to the Factor.

Who should the Notice of Assignment be sent to?

Notices of Assignment should not be sent directly to individuals with an Account Debtor. Sending the Notice to a specific individual may lead to issues relating to the authority of that individual to receive documents on behalf of the Account Debtor. Moreover, Factors that direct Notices of Assignment directly to individuals open themselves up to arguments that the Notices of Assignment was not properly delivered. For instance, our clients that have sent Notices of Assignment to individuals have ended up in situations where the individual to whom the Notice of Assignment was addressed no longer worked with the Account Debtor or the individual was located at a different office and the Notice of Assignment was not sent to the proper location. To be safe and to avoid unnecessary issues, Factors should send the Notice of Assignment to the Account Debtor’s accounts payable department.

Additionally, some states have specialized definitions for what constitutes “notice” on behalf of a company. If there is any question as to where a Notice of Assignment should be sent, Factors should check with their attorney to determine where these should be sent.

How should the Notice of Assignment be delivered?

The crucial issue for the enforceability of a Notice of Assignment is proof of receipt by the Account Debtor, not proof of delivery. Therefore, it is good business practice to send the Notice of Assignment either certified mail or other method that provides for proof of delivery.

Many of our clients have asked about whether it is proper to deliver the Notice of Assignment via e-mail asking the Account Debtor to confirm receipt or with “read receipts” turned on. Some Factors prefer this method because it is more cost efficient.

While sending Notices of Assignment via e-mail is enforceable, we would not recommend it as a general business practice. Sending the Notice in this manner requires delivering the Notice to a specific individual, which we have discussed above can be problematic. Sometimes officers and directors of companies have assistants or other personnel manage their e-mail accounts, raising the possibility that the individual to whom the Notice was sent, never saw the e-mail, even though the e-mail was “read.”

Last, there is no requirement that the Notice be signed by the Account Debtor and returned to the Factor. Often, we see our client’s Notice include a “confirmation of receipt” line for the Account Debtor to sign and return. Sometimes, the Factor will have proof of delivery to the Account Debtor but the Notice was not signed and returned by the Account Debtor. This adds unnecessary ambiguity as to whether the Notice was actually received by the Account Debtor. Therefore, we instruct our clients not to include such requests for proof of receipt.

Who should send the Notice of Assignment?

Some of our clients that have had bad experiences with Account Debtors after delivering a Notice of Assignment have chosen to have their Client be the one to deliver the Notice of Assignment. There is no legal requirement as to whether the Factor or the Client is the correct party to deliver the Notice of Assignment. However, we recommend the Factor be the one to deliver the Notice of Assignment. This way, the Factor is in complete control of the contents of the Notice of Assignment, how it is delivered, and receives confirmation of its delivery. We have been in situations in which the Factor allowed the Client to deliver the Notice of Assignment, but the Client did not deliver the Notice of Assignment in accordance with the law, leading to avoidable litigation.

Should a Factor respond to an Account Debtors questions regarding a Notice of Assignment?

Absolutely, yes. If requested by an Account Debtor, pursuant to the UCC, a Factor must furnish reasonable proof of the assignment for the Notice of Assignment to be valid. Too often we see situations in which requests are made or questions are posed by Account Debtors that the Factor ignores, thinking that because the Account Debtor received the Notice of Assignment, nothing else needs to be done. The Factor should respond to the Account Debtor and provide reasonable proof of the assignment. These communications can also provide invaluable insight as to the relationship between the client and the Account Debtor, how and when payments will be made, and can provide the Account Debtor a sense of trust with the Factor.

A Notice of Assignment is crucial for Factors because it provides legal protection, establishes priority of interest, prevents confusion, facilitates legal recourse, and enables effective communication with Account Debtors. Without this notice, Factors may encounter difficulties in asserting their rights and collecting payments from Account Debtors, potentially jeopardizing the financial transaction.

Bruce Loren and Allen Heffner of the Loren & Kean Law Firm are based in Palm Beach Gardens and Fort Lauderdale. For over 25 years, Mr. Loren has focused his practice on construction law and factoring law.  Mr. Loren has achieved the title of “Certified in Construction Law” by the Florida Bar. The Firm represents factoring companies in a wide range of industries, including construction, regarding all aspects of litigation and dispute resolution. Mr. Loren and Mr. Heffner can be reached at [email protected] or [email protected] or 561-615-5701

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What is a Notice of Assignment?

Last Updated May 1, 2024

If you’re a business owner considering invoice factoring, the Notice of Assignment (NOA) may cause you some concern. What will my customers think? Why is it necessary? Can we skip sending it? Let’s address these questions to clarify what the NOA covers and put to rest any lingering apprehension.

What Is a Factoring Notice of Assignment?

The notice of assignment (NOA) informs your customer that a third party (bank, financing company, or factoring company) will manage and collect your accounts receivable (AR) going forward. The NOA arrives in the mail in the format of a letter, as the initial communication notifying your customers of the change in structure and process.

What Will My Customers Think?

Tremendous growth in the use of invoice factoring across many industries has made factoring more common than ever. According to the Global Factoring Market 2016-2020 report, analysts expect factoring to grow over 10% annually for the next several years.

Many of our factoring clients work with Fortune 500 companies who simply demand longer payment terms in order to do business. Clients using invoice factoring often show an appetite for accelerating growth and more efficiently managing operations and collections.

In short, you are most likely more concerned about it than your customers. Factoring is a widely used and acceptable means for financing your business.

Why Is a Notice of Assignment Important?

In a factoring relationship, a business sells the future collection of accounts receivable (AR) in exchange for cash advances. So, the asset (future AR) belongs to the third party upon completion of the work or delivery of the goods. The business receives the cash advance, and the third party waits for payment by the business’ customer.

Mildred Glaze, Senior Account Manager at altLINE, explains further, “The factor sends out the notice of assignment to be sure they place their client’s customers on notice to submit all payments to the factor and not to their client. The factor will essentially become their client’s accounts receivable department, documenting invoices and payments.”

Due to the intangible nature of AR, the third-party provider needs legal language showing ownership of the AR. Thus, the legal language found in the NOA minimizes the risk placed on the third-party provider. Third party providers require a NOA. It is critical to the structure of the factoring relationship and protects the third-party provider in the event of misdirected payments.

In the case of a redirected payment, Glaze explains, “If a payment is in inadvertently sent to the client [instead of the factoring company], then the client turns around and forwards/sends the original method of payment to the factor…We then turnaround and re-notify that particular customer to have them confirm updating the remittance in their system.”

What Is Covered in a Notice of Assignment?

The main points covered in a Notice of Assignment include:

• Business’ accounts receivable has been assigned and is payable to a third party provider
• Updated payment address, typically a lock box
• Liability on the customer in the event of misdirected payment

How We’re Different

By working with altLINE, your customers recognize the reliability and stability of your financing partner. Rather than receiving an NOA from an unknown entity or independent financing company, the bank’s reputation as the lender of choice strengthens your customer relationship.

Read our article on the benefits of factoring through a bank for more information or get a free quote today!

What does a notice of assignment mean in trucking?

A notice of assignment (NOA) is a document that notifies your customers that your factoring company has the right to collect payments on invoices. In a factoring relationship, a business sells its invoices to a third-party factoring company, which then collects payment on them. An NOA notifies your customers of this change in structure.

Who provides a notice of assignment?

Grey was previously the Director of Marketing for altLINE by The Southern Bank. With 10 years’ experience in digital marketing, content creation and small business operations, he helped businesses find the information they needed to make informed decisions about invoice factoring and A/R financing.

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What Is a Factoring Notice of Assignment?

If you have already worked with a factoring company, then you have probably heard the term Notice of Assignment (NOA) before. There can be so much paperwork involved with the operation of a small business these days. It can be hard to keep up with the times and know what everything is. 

For example, a notice of assignment (NOA) is actually a very common document utilized in the trucking industry. It’s ideal for companies using a factoring transaction service because a factoring fee will pay them on the load in advance.

From there, the factoring company will be responsible for collecting payment for the service from the customer. Today, we will be taking a deeper look into the Notice of Assignment to better understand the importance of NOAs and why we need them. 

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How does an noa work.

Once a factoring company has paid the client for the load, it is important that the debtor knows that the money they owe is now due to another party. This official notification is delivered via a Notice of Assignment. It will be sent out to the debtor as a way of informing them that their payments must now be remitted to the factoring company instead of the carrier. 

Why is an NOA Important?

An NOA is a legal document that acts as a way of notifying the debtor about who they need to pay. When a carrier works with a factoring company, the TAFs Factoring carrier will be paid in advance by the factoring company, so it is important that the debtor is informed of the presence of the third party that will now be managing that company’s accounts receivable (AR). 

An NOA can also ensure that the debtor understands there’s a third party that will be collecting payments from them on behalf of the carrier. Notifying the debtor of this change will make it more likely to avoid payments being sent to the wrong party as well as conflicts and violations of the factoring client agreement.

What Is Covered in an NOA?

In a standard Notice of Assignment, you will find legal forms stating that the assignment of accounts receivable of the business has been assigned to a third-party provider. As such, payments are now payable directly to them. 

The NOA will include an updated address of the third party so that the debtor knows where to send any future payments, as well as the third party’s phone number and a statement letting the customer know that he or she will be held liable in the event of a misdirected payment. 

Will Factoring Affect My Work With My Client?

Working with a factoring company should not negatively impact any work that you do for your clients. The truth is that factoring is extremely common these days and in the larger picture, most business owners work with some form of a lender. 

What you can do on a personal level to avoid any confusion or worry is to simply assure your customers that invoice factoring will not affect the service you are providing to them and they can continue to expect the same level of service and attention in working with you. 

What Will Customers Think When They Receive an NOA?

Nowadays, a large percentage of companies use factoring or some sort of third-party financing option to help keep their operations flowing smoothly from one invoice payout to the next. This is often a display of good business management and dependability in the eyes of your clients. By taking control of your company’s finances, you’re letting them know that you are serious about your business and you plan to be around for years to come.

Is There a Financing Option That Will Not Send an NOA?

Select factoring companies may offer what is known as a non-notification factoring plan in which a conventional deed of assignment is not used. This plan is not often used because it leads to unnecessary confusion, which often results in payments being sent to the wrong party. 

This happens because no matter what, the debtor is still required to mail the payment to the factoring company, but instead of an NOA being issued and making this clear, the company’s letterhead is included. 

Example of an NOA

An NOA is often used in circumstances where a trucking company is utilizing a factoring company to manage their receivable financing for them. The Notice of Assignment is sent to the debtor with clear notification that the accounts receivable of the company they are doing business with are being managed by a third party.

It will properly advise the remittance address for their payments moving forward. With this official notice being received it is now up to the debtor to comply and update their system to make sure payments are processed to the correct party. 

4 Things To Consider When Factoring 

If you are going to use a factoring company here are some things you may want to consider regarding the NOA. 

Responsibility

The responsibility lies with both the carrier and the factoring company. The factoring company will send NOAs to many debtors but it is hard for a factoring company to know every customer a carrier has or will work with. For this reason, the responsibility also falls on the carrier as well to notify all of their customers of the new payment conditions. 

Requirements

The Notice of Assignment is required to be sent out so that the customer is fully aware of who they are legally obligated to pay. Without this notice, many payments would be sent to the incorrect party causing many issues that would deeply complicate the process.

If the trucking company accepts payment from the customer when it should have gone to the factoring company, the trucking company would be in violation of the contract and could be assessed additional fees or charged with fraud. 

Being notified of a factoring company being used is not a bad thing. Utilizing a f actoring company allows the carrier the ability to maintain operations within the windows of payment terms on the loads which may not pay out for 30 days or 60 days. In some cases, it might even be 90 days. 

Most factoring company contracts require carriers to submit every single invoice to minimize the likelihood of causing confusion. If the debtor has to change who they pay for different invoices, the odds are that errors will occur and payment will be sent to the wrong place. That is also why debtors don’t change who they pay after receiving an NOA unless they have an official release letter from the factoring company. This is a red flag for a carrier trying to commit fraud.  

Receiving an NOA Is Actually a Good Thing

In conclusion, we now know that receiving an NOA will inform the recipient that the carrier they used is collecting money via a factoring company or other third-party business. As such, they will not be managing their accounts receivable. This means they are taking their business seriously and making moves to ensure their company will be around for years to come, and with the ability to grow and expand.

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How a Factoring Notice of Assignment Works & Why You Need It

Running a business means keeping an eye on how money comes in and goes out. But sometimes, waiting for payments can slow things down. That’s where invoice factoring comes into play, offering a quicker way to access your money. At the center of this process is something called the factoring notice of assignment (NOA). It’s not much more than a slip of paper, but it plays a significant role in making factoring work smoothly. We’ll explore what an NOA is and why it’s a key piece for businesses looking into factoring below.

How Factoring Works

NOAs are a stepping stone on your path to invoice factoring, so let’s start with the basics of how factoring works.

It can be difficult for small and mid-sized businesses to maintain a healthy cash flow . This critical issue contributes to the closure of eight in ten small businesses, Forbes reports. Invoice factoring addresses this issue head-on by allowing you to sell your invoices to a factoring company, also called a factor, at a slight discount in exchange for instant payment. The typical factoring process is outlined below.

• Step 1: Work. Complete work or deliver goods as usual.
• Step 2: Invoice. Send an invoice to your client via your everyday process and send a copy to your factoring company.
• Step 3: Get paid instantly. The factoring company quickly confirms the invoice is valid, and you receive most of the invoice’s value right away. Payments are typically made via ACH, so funds hit your bank account within a couple of business days. Some offer accelerated solutions, including same-day payments.
• Step 4: Move forward. Your factoring company waits on payment and takes care of collecting the balance for you, saving you the time and trouble of chasing invoices. Meanwhile, you can focus on the core areas of your business and keep serving your clients.
• Step 5: Receive the remaining balance. Once your client pays, your factoring company sends you the remaining balance minus a small factoring fee. It’s not a loan, so there’s nothing for you to pay back.

What is a Notice of Assignment in Factoring?

With factoring, your customers send their payments to the factoring company rather than to you. That means they need to be notified of this change so they can start sending payments to the correct location. Your factoring notice of assignment serves this purpose. It’s a short note to your client that explains what’s happening and why. It generally includes the following details:

• Who: NOAs express the new partnership between your business and the factoring company.
• What: Clients learn that their unpaid balances are being assigned to the factoring company and that they need to send payment to them.
• Where: NOAs explain how to remit payment and provide a physical address for the factoring company.
• When: Most NOAs are open-ended, meaning they tell clients they should remit all future payments to the factor unless otherwise instructed. However, some factoring companies will provide service for a single invoice, so the language will reflect that if it’s part of your factoring agreement.
• Why: NOAs often explain the need for factoring in a client-friendly way, such as “In order to serve you better…” or “To continue providing you with extended payment terms…”

NOAs are common in business and used in lots of different situations. Because most businesses have had some exposure to third-party billing companies or factoring, they’re already accustomed to NOAs and adjust accordingly.

Purpose of NOAs in Factoring

NOAs serve several purposes in the factoring process.

• Ensures Transparency: NOAs clearly communicate to your customers that a factoring company is now handling the invoices. This open communication prevents confusion and maintains the trust your customers have in your business.
• Provides Legal Clarity: By formally notifying your customers about the assignment of invoices to the factoring company, the NOA provides a legal basis for the redirection of payments. This clarity is crucial for avoiding disputes over who should receive payments.
• Facilitates Smooth Operations: With the NOA in place, both your business and the factoring company can expect a smoother operation. Payments go directly to the factoring company, aligning with the agreement’s terms, ensuring that your business receives its funds promptly and without unnecessary complications.

Maintaining Positive Customer Relationships with Factoring and NOAs

Invoice factoring, and thereby NOAs, can be a helpful tool that supports and enhances your customer relationships.

• Transparent Communication: The issuance of an NOA is a prime opportunity for clear communication. By informing customers about the factoring arrangement and what it means for them, you’re prioritizing transparency. This openness can strengthen trust, as customers appreciate being kept in the loop about changes that might affect their payment processes.
• Simplifying Customer Payments: Factoring, facilitated by the NOA, simplifies the payment process for customers. By directing them to send payments to the factoring company, you’re streamlining their accounts payable process. This can be particularly beneficial if the factoring company offers multiple payment methods, making it easier for your customers to fulfill their invoices.
• Reassuring Your Clients: A well-crafted NOA can highlight your decision to factor as part of your business’s strategy to ensure stability and continuous improvement in service delivery. This reassures customers that your business is financially proactive, focusing on long-term partnerships and reliability.
• Focus on Core Business Values: With the administrative aspect of invoice processing handed over to the factoring company, your business can devote more attention to its core offerings. This can lead to improved services or products for your customers, reinforcing the value of your business relationship with them.

Alternatives to NOAs

While NOAs are common in business, sometimes businesses still ask whether NOAs are mandatory in invoice factoring. Traditional invoice factoring, sometimes referred to as “notification factoring” or “full notification factoring,” always requires NOAs. However, there is a newer form of invoice factoring called “non-notification factoring” offered by some factoring companies. In these cases, the factoring company doesn’t make a point of announcing its presence. It changes the nature of your agreement a bit, and there are additional requirements.

Full Notification vs Non-Notification Factoring

• Interaction: Factors limit their interactions with your clients more when you choose non-notification factoring.
• Verification: Your clients know that your factoring company is the one verifying invoices under a traditional factoring agreement. With non-notification factoring, they use your company name while doing it instead.
• Qualification: It’s easy to qualify for traditional factoring because your client’s creditworthiness is evaluated, not yours. With non-notification factoring, you’ll also need to meet specific eligibility requirements.

Unlock Your Business’s Potential with Factoring

Factoring and the use of notices of assignment streamline cash flow and foster transparent, trusting relationships with customers. By embracing this financial strategy, you can also access funds faster, ensure smooth operations, and focus on growth without the wait. However, it’s important to work with an experienced factoring company that is committed to providing your clients with top-notch service and understands your business. We’re happy to match you with a provider that meets your needs. If you’re ready to explore how invoice factoring can transform your business cash flow, request a complimentary factoring rate quote .

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What is a Notice of Assignment and How Does it Protect the Construction Business?

by CapitalPlus Financial | Nov 8, 2023 | Blog

The Notice of Assignment, or NOA, is commonly used in business, including the construction industry. Let’s learn about the definition and how it protects us, construction businesses.

A Notice of Assignment is used when rights or obligations under a contract are transferred from one party to another. For example, if a company assigns its rights to payment under a construction contract to a third party like a factoring company , a Notice of Assignment would be sent to the party owing the payment to inform them of the new payee. The NOA helps to ensure that a construction company’s actions are transparent and that it has taken the necessary steps to inform and coordinate with all parties who may be impacted by its activities.

How does the “Notice of Assignment” protect construction trades?

Being a formal document, the Notice of Assignment states that a contract or obligation has been transferred from one party (the assignor) to another (the assignee). Here’s how it protects a construction company:

• Clarity of Responsibility : An NOA clearly delineates the transfer of rights or obligations under a contract, such as the right to receive payment or the duty to perform work, ensuring that all parties know who is now responsible.
• Proof of Notification : In the event of any disputes arising regarding the assignment, the NOA serves as legal proof that all parties were properly informed. This can be crucial in the event there is litigation or arbitration.
• Protection of Payment Rights : For a construction company that has sold or assigned its right to receive payment for work performed, the NOA informs the client or project owner of the Factoring company to which payments should be made, thus protecting the company’s financial interests.
• Avoidance of Duplication : The NOA prevents the original client from making payments to the assignor when the right to receive payment has been assigned to another entity, thus avoiding duplicate payments or financial confusion.
• Legal Requirement : In some jurisdictions, a NOA is a legal requirement to enforce the assignment against third parties. Without it, the assignee may not be able to legally claim their rights under the contract.
• Maintaining Business Relationships : By formally notifying clients of the assignment, the NOA provides the construction company transparency and trust in its business relationships, which is essential for ongoing and future business.

In summary, the Notice of Assignment ensures that all parties are informed about where contractual rights and obligations lie after an assignment has taken place.

If you have questions about NOAs or any other aspect of the invoice factoring process , feel free to reach out. We are glad to help.

Advanced Commercial Capital

Freight factoring articles.

What is a Notice of Assignment in Trucking?

When you factor your invoices, you are essentially selling them to the factoring company. The factoring company then collects the payment from your customer on your behalf. In order for the factoring company to have the legal right to collect payment from your customer, you will need to sign a notice of assignment.

A notice of assignment in trucking is a document that assigns the right to collect payment on an invoice to the factoring company. The notice of assignment also assigns the right to receive any future payments on the invoice to the factoring company.

Why is a Notice of Assignment Important?

A notice of assignment in trucking is important because it protects the factor’s (or the organization to which the receivables have been assigned) interest in the receivables. The notice of assignment also allows the factor to perfect its security interest in the receivables, and provides notice to the debtor that the receivables have been assigned and that payments should be made to the factor. Another reason why a notice of assignment is important is that it allows the factor to take action against the debtor in the event of a default on the receivables. Without a notice of assignment, the factor would not have any legal recourse against the debtor.

The notice of assignment also helps introduce the factoring company to the debtor. This is because the debtor will now be dealing with the factoring company instead of the business that assigned the receivables.

What is Covered in a Notice of Assignment?

When a trucking company factors their receivables, they are selling their invoices to a factoring company at a discount in order to receive immediate cash. The factoring company then becomes the receivable’s owner and has the right to collect payment from the debtor. In order to protect their investment, the factoring company will send a notice of assignment to the debtor, informing them that they now owe payment to the factoring company, not the trucking company.

The notice of assignment usually includes the following information:

-The name and contact information of the factoring company -The name and contact information of the trucking company -The invoice number or numbers that have been assigned to the factoring company -The amount of the invoice or invoices that have been assigned -The due date or dates of the invoice or invoices -The name and contact information of the debtor -A statement informing the debtor that they now owe payment to the factoring company instead of the trucking company -The factoring company’s terms and conditions for payment as well as payment details

Sending a notice of assignment to the debtor protects the factoring company’s investment and ensures that they will be paid for the invoices that they have purchased. It also allows the trucking company to focus on its business instead of chasing down payments from debtors.

Notice of Assignment Examples

It is common for businesses in the trucking industry to use factoring as a way to finance their operations. In order to secure funding, companies will often sign over their accounts receivable to the factor. This means that the factor has the right to collect payments on behalf of the company. When this occurs, the factor will typically send a notice of assignment to the company’s customers.

The notice of assignment informs the customer that the invoice has been assigned to the factor and provides instructions on how to make payment. It is important to include all relevant information in the notice, such as the amount owed, the due date, and the mailing address or website where payment should be sent.

Below is an example of a notice of assignment that a company might send to its customers:

Customer LLC

123 Main Street

Anytown, USA 99999

Dear Sir/Madam

RE NOTICE OF ASSIGNMENT.

Dear Customer,

We are writing to inform you that your invoice number 12345 has been assigned to ABC Factoring Company. Please remit payment for the invoice in full to ABC Factoring Company at the following address:

ABC Factoring Company

You can also make payments online at www.abcfactoring.com. Please be sure to reference your invoice number when making a payment. Kindly note you are liable for any misdirected payment, and as such we strongly advise you to take note of the change in payment details.

If you have any questions, please contact our office at 555-555-1234.

Thank you for your prompt attention to this matter.

Your Company Name

An example of a notice of assignment sent by a factoring company to the debtors:

Dear Debtor,

According to the agreement between your company and our client – the Assignor – we hereby inform you that all the Assignor’s rights, title and interest in the account receivable described below were assigned and transferred to us, effective as of the date of this notice. All payments should now be made payable to and mailed to our address:

New Factor’s Name

The Assigned Account Receivable:

Description of Invoice: Invoice Number:

Amount: Due Date:

From now on, you should direct all your questions and requests concerning the above-mentioned invoice to us.

Should you have any questions, please do not hesitate to contact us.

The Factor’s Name.

As you can see, a notice of assignment is a simple but important document that companies in the trucking industry often use when factoring their invoices. The notice informs the debtor that the invoice has been assigned to the factor and provides instructions on how to make payment. By including all relevant information in the notice, such as the amount owed, rate confirmation, the due date, and the mailing address or website where payment should be sent, companies can help ensure that their customers make timely payments and avoid confusion. Advanced Commercial Capital, we are experts in factoring for the trucking industry and can help you get the funding you need to grow your business. Contact us today to learn more.

In observance of Memorial Day, Bobtail will be closed on Mon, May 27. We will return on Tues, May 28, and process invoices accordingly. Have a safe holiday.

Learn how to set up your business for success this year on our blog .

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What Is A Notice Of Assignment In The Trucking Industry?

To understand a notice of assignment, trucking company owners first have to be familiar with factoring—and to understand factoring, we’ll have to discuss the nuances of cash flow in the shipping industry.

Basically, the challenge for fleet owners (and owner-operators) is that their customers take forever to pay their invoices. You deliver a load and issue the invoice. The shipper may take 30 or 45 or 60 days—or more—to pay that invoice. Meanwhile, you’ve got fuel costs, payroll, insurance payments, and the thousand other financial obligations that keep your trucks on the road. You need that invoice paid now .

Factoring is the industry’s solution for quick payments to carriers. A factoring company steps in and pays your invoice today. Then that company collects from your customer, the shipper or broker who hired you to haul a given load. For their service, the factoring company keeps a low percentage of the total invoice value. (With Bobtail, the factoring fee ranges from 1.99% to 2.99%, depending on the volume of invoices you factor.)

Note that factoring is not a loan; the factoring company buys your invoices, so there’s no compounding interest or credit impact. Factoring beats loans as a cash-flow solution, hands down.

Struggling with slow payments from shippers and brokers? Keep cash flowing the simple way with Bobtail factoring.

With these preliminaries out of the way, we’re ready to answer the question that brought you here: What exactly is a notice of assignment in trucking?

Defining The Notice Of Assignment In Trucking

Factoring requires shippers and brokers to make changes in their billing systems. You’re no longer the collector on a factored invoice; the factoring company is. Accounts payable departments are busy places, and it’s easy for a shipper’s finance team to get confused when you do the work but another company collects the payment (after that company pays you, of course).

A notice of assignment clears up the billing relationship in a factoring agreement. A notice of assignment is a contractual document, supplied to both the carrier and the customer, that tells the customer to pay the factoring company, not the carrier.

The notice of assignment is an essential piece of paperwork, one of the documents you’ll have to keep on file as you establish a factoring relationship. You’ll have to sign the notice of assignment, and so will your customer. In short, this is a contractual agreement that carries legal consequences, and clarifies who exactly the shipper should pay for a delivered load.

Why is a notice of assignment important?

Consider the case of a trucking company that shifts to factoring after months or years of collecting directly from a shipper. That carrier’s payment details are already set up in the shipper’s accounting systems. Due to accidents or willful fraud, it’d be easy for the carrier to collect on an invoice twice—once from the factoring company and again from the customer.

In that scenario, the factoring company loses money, or at least becomes embroiled in a flurry of paperwork and legal challenges. So the notice of assignment is designed to protect the factoring company. But this document provides benefits for you, the carrier, and your customers, too.

How A Notice Of Assignment Benefits Shippers And Carriers

Who needs more paperwork? While it may seem like just another legal document, notices of assignment are actually helpful for all three parties involved in a factoring payment deal: the factoring company, sure, but also the carrier and the customer.

For shippers , the notice of assignment is a strong incentive to update payment details in their accounting systems. It delineates the nature of the financial agreement. It provides visibility and clarity that avoids conflict down the line. Most importantly, factoring companies require shippers to sign a notice of assignment—and factoring benefits customers, too. It keeps them from having to renegotiate payment terms, and gives them the full 30 or 60 days to pay, which allows them to optimize their own cash utilization.

Carriers also benefit from the clarity that comes with a notice of assignment. This document allows you to rest assured that the customer won’t accidentally pay you for a factored invoice, so you don’t have to spend all day trying to get the money into the right hands—or face collection threats of your own.

The binding agreement contained within a notice of assignment protects you from legal problems. It’s simply smart business to make sure everyone knows exactly who should get paid, and for what. Notices of assignment accomplish this goal—and, with Bobtail, the paperwork is simpler than you might think.

Simplifying Notices Of Assignment

Traditional factoring companies aren’t the most efficient financial operators in the world. They make you sign restrictive contracts. They might even tell you who you can work with, and who you can’t. They stack hidden fees on everything from set-up to ACH transfers to terminating the deal. And they make you fill out reams of paperwork before depositing a cent.

Bobtail is different every step of the way. We started this company to eliminate the inefficiencies in the factoring process, and that includes personalized assistance with handling notices of assignment.

When you sign up with Bobtail—a quick, online process involving a single application form—you’ll get a personal account manager who’s always ready to answer questions and solve problems. They’ll issue your notice of assignment and make sure your customers understand the document and why it’s necessary.

All you have to do is carry on carrying loads.

When you decide to factor an invoice, the process is even simpler. Just deliver the load, upload the invoice, attach a rate confirmation and a bill of lading, and get paid. It’s all done through Bobtail’s online system, so you can handle financing from the rig. We also provide a user-friendly digital dashboard that makes it easy to track every invoice at every step of the financing process. There’s simply no easier way to factor an invoice.

At Bobtail, we believe that you know what’s best for your business. That’s why we don’t make you sign a long-term contract; this is no-contract factoring. You pick which accounts to factor and which to collect from directly, and we don’t have volume requirements or exclusive financing deals.

We also don’t charge hidden fees. You just pay a flat factoring fee so there’s no confusion on exactly how much cash will hit your bank account—or when. Invoices are filled the same day you submit them, or the next day if the invoice arrives after 11 a.m. Eastern time.

Don’t be intimidated by a notice of assignment in trucking—or any other documents related to your factoring service. With Bobtail, our devoted customer service team makes sure everything runs smoothly, and we’re there to help every step of the way. Or, as one Trustpilot review puts it:

“They always answer the phone! The staff is very helpful and cordial. The three things I love are: Payments are on time, the website is easy to use, and great customer service!”

(Read more customer reviews on Trustpilot.)

Ready to improve cash flow without the headaches? Sign up to learn more today.

If you have questions about account set-up, notices of assignment, or anything else related to factoring, contact the Bobtail sales team at (410) 204-2084, or email us at [email protected].

Caroline Asiala is the Digital Marketing Manager at Bobtail. With a background rooted in advocating for migrant rights, Caroline leverages her expertise in content creation to support small trucking businesses, many of which are immigrant-owned and operated, with the information they need to make their businesses thrive.

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• The Factoring Business Notice of Assignment – Never Fund Without It

Real life scenario explains why factoring companies require a Notice of Assignment to fund business invoices in this article from Oxygen Funding.

After gathering the required documents we moved forward with our proposal to fund the prospect. The prospect accepted our terms and we proceeded with funding our new client’s invoices. For the first month or so we were able to verify, fund and collect without any problems. Since the client’s business was growing, he was looking for us to increase his credit line so we could purchase more of his invoices.

It was in the second month of funding when our team noticed that several of his invoices with one of his customers were still outstanding. This development struck us as odd since this particular customer of our client was very strong and the invoices with his other customers were paying in a timely fashion.

We contacted our client to shed some light on the issue and he informed us that he was not aware of any issues with the customer. We followed up with the client’s customer, who surprisingly informed us that they had never changed the payment address to our office even though they signed our notice of assignment.

Why Factoring Companies Use a Notice of Assignment When Funding Invoices

A “Notice of Assignment” is generally a written instruction to the client’s customer that the client’s accounts receivable have been assigned and is payable to the factor. This is an extremely important document for factoring companies . This document protects the factoring company in the event a payment is accidentally sent to the client instead of the factor. Even if the client skips off with your money, this document ensures you are still owed the funds from the client’s customer. Hopefully, you will never have to enforce this notice but it imperative you have it as part of your requirements before funding.

As it turned out, the client received our checks and actually deposited the funds directly in his company’s account. Believe it or not, this happens quite often in the factoring business. Many times, the client’s accountant or bookkeeper will deposit everything that comes into their office without knowing which check is the property of the factoring company.

With this knowledge, we informed the client that all factored funds were the legal property of our company and needed to be returned to our company immediately. Our factoring agreement has a clause that specifically addresses misdirected payments. It basically imposes a huge penalty on the client if the funds are not returned to our office within a twenty four hour period once the client has been notified.

The client informed us he wouldn’t be able to return the funds to us for another week or so. He also stated that since it wasn’t his mistake he had every right to the money to take care of a few expenses and pay us later. We explained to him this was unacceptable since he was now paid twice on his invoices and informed him of the misdirected payment clause in his agreement. He brushed it off saying we would get our money in about a week or so. Finally, we informed him of the notice of assignment that he and his customer signed when we opened his account with our company. We also mentioned that his customer would be receiving a demand payment letter from our legal department explaining the situation and how they owed us the money for the invoices he deposited.

This was not the way we wanted the situation to play out, but unfortunately the client left us no other choice. Think about, if this legal document had reached his customer it would have portrayed him in a very negative light and severely damaged his relationship. Needless to say, we received our funds from the client (along with the penalty) the next day. We also ceased funding this client because we felt that when given the choice to do the right thing, he chose not to do so.

Always have a notice of assignment perfected with all customers you fund to ensure that any misdirected payments will be paid to you, the factoring company.

For more information, he can be reached at [email protected] or you can visit his company’s website at www.oxygenfunding.com

Two of the most read articles from Don include:

• Starting Your Own Factoring Business? It’s Your Call
• Getting In the Factoring Business – Part Two

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Don D'Ambrosio assists companies with cash flow needs through invoice factoring services. You can connect with Don online through the Oxygen Funding website , LinkedIn or Google+

Great article! This article also shows the importance of the client’s “character” and how significant it is to the factoring relatioship. Clients should always notify their factoring company if a check is received by accident. When they don’t, the factoring relationship is damaged and often terminated resulting in additional strain on the business’ cash flow.

Great read!

Hi, it’s really good article about the Factoring Companies Use a Notice of Assignment .You must have a lot of patience to research, plan and write this kind of solid information.

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Featured Article

Onyx Motorbikes was in trouble — and then its 37-year-old owner died

A battle for control now has onyx in legal limbo..

James Khatiblou, the owner and CEO of Onyx Motorbikes , was watching his e-bike startup fall apart. 

Onyx was being evicted from its warehouse in El Segundo, Los Angeles. The company’s unpaid bills were stacking up. His chief operating officer had abruptly resigned. A shipment of around 100 CTY2 dirt bikes from Chinese supplier Suzhou Jindao was delayed, and customers were starting to demand refunds – a major problem considering Khatiblou already owed both lenders and shareholders a lot of money.

Khatiblou, known for his warm and outgoing personality, was fearful and stressed, according to interviews with people who worked alongside him. In the waning months of 2023, he was so distracted by the startup’s increasing debt and legal problems, he was unable to follow through on basic tasks. At the same time, his health was deteriorating, according to his mother, Diane Khatiblou. The vibrant and active man with the toothy smile was having trouble breathing and even walking, she said. 

Then Onyx’s problems escalated in a way nobody expected. 

At 37 years old, Khatiblou – who loved riding the halfpipe at the company warehouse and traveling the world – died unexpectedly. The Los Angeles County Coroner’s Office determined Khatiblou suffered a pulmonary embolism, listing deep vein thrombosis as a secondary cause. 

His death on December 12, 2023 added a new layer of uncertainty to the future of Onyx and its assets.

Khatiblou left behind no will and no succession plan — only millions of dollars in debt and questions from staff, creditors and customers about how to proceed when the sole owner of a company dies. 

Today, no one owns Onyx Motorbikes, which means all operations – customer deliveries, payments to suppliers and creditors – have ground to a halt. Oxygen Funding, an Orange County-based creditor to which Onyx owes around $2.2 million, is petitioning the Los Angeles County probate court to become the administrator of Khatiblou’s estate. 

“[Onyx] had such good prospects. It had such a loyal fan base and such a good product, and it was all just basically put in limbo the day James passed away,” Adam Lomax, chief executive officer of Oxygen Funding, told TechCrunch. “And it has remained in limbo all the way up to the point where we are now.”

As administrator, Oxygen could help put some pieces together. But numerous legal wrinkles threaten to derail those plans. 

A battle between Oxygen Funding, two former shareholders and Onyx’s Chinese parts supplier is now raging over who controls Onyx’s remaining assets – bikes, chargers and batteries – and who gets to be made whole first.

Based on interviews with creditors, lawyers and multiple former employees at Onyx, the company’s story highlights how complicated things can become if the sole owner of a business doesn’t make a plan for what happens when they die. 

A life changed by $1

Khatiblou didn’t create Onyx Motorbikes. Its founder is Tim Seward , who is now VP of product and design at e-bike company Ubco , and who initially just wanted to make a cool electric moped to impress his friends. 

“I grew up loving Volkswagens and vintage cars and motorcycles,” Seward told TechCrunch. “I loved that style and wanted to make an electric moped version of that.”

Seward started building out what would become the prototype for Onyx’s popular RCR electric dirt bike in 2016 while a designer at LG Electronics, where he worked alongside Khatiblou. 

“The look of the bike is actually an eagle with its wings folded together as it dive bombs,” Seward told TechCrunch. “The two side panels are the wings. The wood part is kind of the body or the torso, and the seat would be the tail of the eagle.”

As Seward drove his bike around San Francisco, people kept stopping him to ask where they could get one. After saying, ‘It’s not for sale,’ enough times, Seward finally decided that maybe it should be. 

He launched an Indiegogo campaign for Onyx Motorbikes in 2018, raising nearly $1 million. Onyx promised to deliver American-made bikes, which Seward said would help the company maintain better quality control, create local jobs, and avoid import tariffs. 

The bikes were an instant hit. People loved the 1970s and 1980s appeal of the design, the wooden body, the made-in-the-USA-style. And, most importantly, the bikes could shred.

Seward hired out a team of technicians to help him fulfill his growing order count. Khatiblou, who lived near Onyx’s San Francisco shop, would often come in after his new day job at Amazon to blow off steam. He even built his own Onyx bike after buying one on Indiegogo, said Seward, who shared a video that showed Khatiblou’s excitement for his new toy. 

By early 2019, Seward was getting burned out with the responsibilities of running a business. He wanted to focus on designing and building bikes, not deal with purchasing agreements and payroll. He started shopping for a merger. 

What he ended up getting was an acqui-hire deal from Bird, the struggling shared e-scooter company . Instead of acquiring Onyx and its assets, Bird paid Seward a lump sum in the hundreds of thousands to come and work for them full time. As part of the deal, Seward had to find a replacement for himself at Onyx. He ended up landing on Khatiblou, who had offered to quit his Amazon job and step up into the CEO role. 

Eager to offload the business responsibilities of Onyx, Seward sold Khatiblou his company in May 2019 for $1. 

“My tax advisor had said to do that to avoid paying taxes, or something like that, but also James didn’t have a lot of money at the time,” said Seward. “Mainly, it was because of what Bird was offering me, which more than supplemented what I thought I should have been paid for the company.”

Khatiblou stumbled a bit when he took over the business, says Seward. After all, he had never run a company or dealt with e-commerce before. But it was clear he was dedicated to running Onyx and getting cool bikes into the hands of loyal customers. 

“He lived and breathed Onyx,” Diane Khatiblou told TechCrunch. “It was everything to him, and he put everything into it.”

While Seward had no official ties or claims to Onyx at this point, he continued to advise Khatiblou as a friend and to produce content for Onyx’s social media. That relationship continued until the two fell out over a dispute regarding new shareholders Khatiblou took on. 

Per Seward’s retelling, Khatiblou had decided to bring on backers who would invest millions in the business. Despite the potential financial upside of the arrangement, Khatiblou wouldn’t stop complaining about how the deal would reduce his ownership in Onyx. Seward – frustrated by his friend’s doubts – took a step back from Khatiblou and Onyx, doubling down on his work at Bird building new e-scooter and e-bike models. 

A web of legal and financial troubles

As a first-time business owner navigating the suddenly hot e-bike space, Khatiblou made some mistakes. He signed himself as the personal guarantor for lending agreements; and he overspent on supply and accounting costs. And even toward the end, as the business spiraled, Khatiblou turned down what could have been a lifeline: a buyout offer from a competitor.

He also mismanaged the relationship with his two shareholders, who bought into the business and would eventually sue him: Kenneth Ames, a former engineering and sourcing executive in the LED lighting business based in Simi Valley, and Troy Smith, a self-employed accountant based in Carlsbad. 

In September 2019, through a “shareholders agreement,” Ames purchased 2.2 million shares of common stock in Onyx Corp., and Smith bought 800,000, leaving Khatiblou the remaining 5 million shares. TechCrunch was unable to learn the original dollar amount of these equity investments. Under an “operating agreement,” Ames and Smith also collectively held a 37.5% percentage interest in Onyx LLC. 

Onyx filed as a corporation in California and Delaware in 2018. The separate LLC entity was set up in California a year later, when Ames and Smith came onboard. Typically, a company will set up a corporation in addition to an LLC to isolate liabilities, for more flexible tax planning, to customize ownership structure, or to protect assets listed under the LLC. 

TechCrunch was unable to obtain a copy of Onyx LLC’s operating agreements with Ames and Smith, which might have given the shareholders the authority to participate in day-to-day management and operation of the business. 

The two did not respond to repeated requests from TechCrunch for more information, but it appears they did have a hand in company affairs — at least, in the beginning. Seward told TechCrunch that, while he wasn’t aware of Smith at the time, he had met Ames and thought he was “a good guy.”

“He was smart and knew business and that’s what Onyx needed,” said Seward, noting that Ames helped enhance the manufacturing process he had started. “From my perspective, he was making Onyx healthy.”

A month after signing the operating agreement, Khatiblou signed a trademark assignment agreement , transferring ownership of Onyx’s branding from Onyx Corp. to Onyx LLC. 

Khatiblou couldn’t shake his mistrust of his new business partners, however, according to the accounts of people close to him at the time. Less than a year after Ames and Smith had become shareholders, Khatiblou took action to take away their decision-making powers. In August 2020 and December 2020, Khatiblou unilaterally removed Ames and Smith, respectively, as officers, directors and managers of the Onyx companies.  

Around the same time, Oxygen Funding, an invoice factoring company that provides cash flows to small- and medium-size businesses, entered the picture. Khatiblou and Oxygen signed a trade payables agreement in December 2020. Under the agreement, which TechCrunch has viewed, Oxygen purchases bikes and parts directly from suppliers and vendors on behalf of the e-bike company, and Onyx pays it back plus various fees. 

Per the terms of the agreement, Onyx’s supplies and assets would be held as collateral. Khatiblou was personally liable if Onyx failed to make payments.

Will Drewery, founder and CEO of Diagon.ai , a startup building a platform for equipment financing, told TechCrunch that creditors’ fees are pretty standard in the industry. Signing on as a personal guarantor, however, is not. 

“It’s legal to do it, but it’s dumb,” Drewery told TechCrunch. “And places like Y Combinator, Techstars, any advisor or investor will tell you, like, ‘Are you an idiot? Why would you sign a personal guarantee? Don’t ever do that.’”

Clara Brenner, co-founder and managing partner of VC firm Urban Innovation Fund, had a similar sentiment. 

“Personal liability… is something you actively run from,” Brenner told TechCrunch. “It’s something we strongly dissuade our founders from doing because most of the time they’re not super sophisticated about these mechanisms, and it’s just really risky.”  

Oxygen Funding’s Lomax, for his part, said making the borrower a personal guarantor is standard protocol when a business doesn’t have enough assets to back up the credit line.

But now that Khatiblou has passed away, all Oxygen and other creditors can fall back on is whatever e-bike supply remains. Oxygen and Ames, together with Smith, are now duking it out for access to those assets. 

The CEO was slipping

Days before Khatiblou died, Mig Cernicky, Onyx’s purchasing director, said his CEO was slipping. 

“Several of us were working closely with James to try to get him on the ball…and take care of these eviction notices,” Cernicky told TechCrunch. “At that point, his mental capacity had declined to the point that he was having a hard time even carrying on a simple conversation.” 

Diane Khatiblou told TechCrunch that in addition to stress, her son was also in and out of the hospital and was “very ill for a couple of months before he died.” He was initially diagnosed with pneumonia. It turns out that it was a blood clot that caused Khatiblou trouble breathing and difficulty walking to the point that he started using a cane, according to Diane Khatiblou.  

“I didn’t realize how much pain he was in because, of course, he was trying to pull himself up and not complain,” she said.

Realizing that Khatiblou wasn’t in a fit state to handle the pressing matters at hand, Cernicky said he started pressuring Onyx’s COO, Tay McDaniel, to step up – to which she replied with a resignation letter. 

At a loss for what to do and desperate to try to save Onyx, Cernicky drafted a document on December 8 naming himself as president and COO of Onyx Motorbikes for Khatiblou to sign.

“It is the last document that James signed,” said Cernicky. 

Khatiblou died four days later, and Cernicky stepped in as acting CEO to try to keep Onyx alive. 

Khatiblou was unmarried and had no children when he passed away, so his mother, Diane Khatiblou, became his sole heir.

That didn’t mean she was automatically in charge of Khatiblou’s assets, which includes Onyx — only that she had first rights to them. According to the California Probate Code, in cases like this, the court needs to appoint an administrator to decide what to do with the company. After initially petitioning a Los Angeles probate court in March 2024 to step in as administrator of her son’s estate, Khatiblou’s mother reversed course and withdrew her petition.

Now, Oxygen Funding is petitioning the court to become the administrator, its chief executive Lomax told TechCrunch. That’s one way for the creditor to ensure that it gets its money back. Lomax wouldn’t confirm whether Oxygen would sell company assets to pay itself and other creditors back or find someone else to pick up the pieces and keep the company alive. 

Creditors become secured creditors when they file a Uniform Commercial Code (UCC) form. Oxygen filed one of these with Delaware’s Secretary of State in December 2020, which the creditor says makes it first in line to be paid back its $2.2 million. There are other creditors waiting in line too. JP Morgan Chase claims to be owed $43,323.29, according to probate court documents. In mid-May, a customer who had purchased an RCR dirt bike and some accessories back in November 2023 also filed as a creditor in probate court to get his $6,019.97 back. Sources say Shopify, the platform under which Onyx made its sales, is also owed money but has yet to file a claim.

Ames and Smith are also claiming to be creditors. The pair filed UCC forms in California for both Onyx Motorbikes Inc. and Onyx Motorbikes Global Holdings LLC on May 26, 2021 – the day after Khatiblou signed a settlement agreement that would see him buying back their shares for some $10,000 per month over the span of 80 months.

By filing those UCC forms, Ames and Smith essentially turned a share buyback into a loan agreement – and they are holding Onyx’s assets, “tangible and intangible,” as collateral against their security interests. 

Counsel for Ames and Smith told TechCrunch that Onyx had breached its repayment agreement when Khatiblou passed away and could no longer continue buying back shares. 

“Accordingly, Mr. Ames and Mr. Smith, as secured creditors, are taking steps to foreclose on Onyx LLC’s assets,” reads a statement from the lawyer.

The two shareholders earlier this month gave notice of a lien sale to Khatiblou’s estate and acting CEO Cernicky, according to several people familiar with the matter. 

The notice advises that Ames and Smith plan to sell Onyx LLC’s collateral sometime on or after May 21. In the notice, collateral is defined as a general all-assets description. At the time of publication, none of Onyx’s disputed assets had been sold.

In addition to Ames and Smith, their counsel did not respond to TechCrunch’s requests for more information, like what assets they have in their possession and plan to sell.

E-bikes stuck in storage

Since there’s no money in Onyx’s coffers, the only way for Oxygen or anyone else to be made whole is to sell whatever assets and supplies remain. Oxygen posits that since it paid for Onyx’s supply and since the e-bike company defaulted on its payments, it is the rightful owner of any remaining assets.

There’s just one problem. Those assets are being held split between at least two parties. 

Oxygen is in possession of about 100 batteries and chargers as well as 25 CTY bikes, confirmed Lomax. The remaining 74 bikes are in a warehouse used by Suzhou Jindao, the e-bike assembly manufacturer in Suzhou that was Onyx’s supplier. Suzhou Jindao is waiting for a court order that directs where the inventory should go. 

The Chinese supplier has also been pressured by Ames and Smith to hold onto the bikes and ensure they don’t make it into Oxygen’s hands. In an email that TechCrunch has viewed, counsel for the two investors asked the supplier to hold off on delivering the bikes “in light of the liens held by Troy Smith and Ken Ames.”

With assets split between two parties and a web of legal claims, it’s unclear exactly who will be the victor — or if Onyx will ever exist again. 

There are several possibilities. Ames and Smith could use the trademark assignment to block Oxygen and others from selling Onyx-branded gear. The pair could use the tactic to not only wrest control of the assets but as a strategy to bring the Onyx brand back. 

To make matters more tricky, Ames and Smith – who claim to be creditors per the share buyback agreement – now appear to have regained full ownership of their shares, making them active shareholders. This is because their shares were being held in escrow while Onyx was paying them back; when Khatiblou died and Onyx defaulted on payments, those shares moved out of escrow, which Smith has confirmed to TechCrunch. 

“Either you’re an owner or you’re not an owner,” said Lomax. “Which is it? Because if you’re an owner, then we need to talk to you about how Oxygen Funding gets repaid.”

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MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

• Weighted scoring
• Value vs. complexity
• Buy-a-feature
• Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

Prioritizing your roadmap using our guide

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Analyzing Minard's Visualization Of Napoleon's 1812 March

In The Visual Display of Quantitative Information , Edward Tufte calls Minard’s graphic of Napoleon in Russia one of the “best statistical drawings ever created.” But what makes it so good?

Before we analyze this graphic, we need to know a bit of history.

The year is 1812, and Napoleon is doing pretty well for himself. He has most of Europe under his control, except for the UK. No matter how many times he tried to invade them, he couldn’t break through their defenses. His plan was to place an embargo on them, forcing the other European countries to stop trade with the UK which would weaken them enough so that Napoleon could invade and take over easily.

Czar Alexander of Russia sees that Napoleon was becoming too powerful, so he refuses to participate in this embargo. Angry at Czar Alexander’s decision, Napoleon gathers a massive army of over 400,000 to attack Russia in June of the year 1812. While Russia’s troops are not as numerous as France’s, Russia has a plan. Russian troops keep retreating as Napoleon’s troops move forward, burning everything they pass, ensuring that the French forces could not take anything from their environment. Eventually the French army follows the Russian army all the way to Moscow during October, suffering major losses from lack of food. By the time Napoleon gets to Moscow, he knows he has to retreat. As winter settles into Europe and the temperature drops, Napoleon’s troops suffer even more losses, returning to France from lack of food, disease, and weather conditions.

Let’s look at all the data we have for this battle.

We have the numbers of Napoleon’s troops by location (longitude), organized by group and direction. We can plot it on line graphs like so.

Next, the temperature experienced by his troops when winter settled in on the return trip.

We also have the path that his troops took to and from Moscow. We can display this information by plotting the paths on a map.

Finally, here is Minard’s graphic.

We have many dimensions of data that takes several individual graphs to represent. Minard’s graphic is quite clever because of its ability to combine all of dimensions: loss of life at a time and location, temperature, geography, historical context, into one single graphic. He shows these various details without distracting text or labels as well. For example, he displays the points where Napoleon’s troops divide into subgroups by breaking out the main bar into branches. He adds thin lines to represent river crossings on the return trip that further decimated Napoleon’s diminishing troops. And he is able to show the drastic loss in life from Napoleon’s decision in just a single corner of the diagram.

The beginning of Napoleon’s march vs the end of his retreat.

Equally important as what’s shown is what’s not shown — here’s an earlier example of a well-published data visualization:

This graphic was created by William Playfair, largely considered to be the father of information design, in 1786 — about 100 years before Minard’s diagram was made. Playfair is the inventor of the pie chart, the bar graph, and the line graph - statistic graphics we use regularly today. This graphic has gridlines to mark the years and the number of exports. There are five colors, each color representing something different, as well as a number of specific labels in large text. Compare this to Minard’s graphic: when he draws the map, there are no geographical borders and only very minimal geographical plotting. There are many labels describing cities and number of troops, but they are very small. Minard only uses two colors to represent all of the data in the graphic. Additional labels, gridlines, and geographical markings would have made the graphic too overwhelming for the eye, which makes the impact of the data so much stronger.

There are some similarities to designing print data graphics and designing modern interfaces for mobile and web. When we need to translate numbers into graphics to users, we want to focus on communicating lots of information without overwhelming the users with extraneous content, much like Minard with his visualization of Napoleon’s March. Both designers created effective graphics to turn numbers into a narrative, but Minard was able to tell a much more detailed story with his design techniques.

What’s next

If you would like to learn more about information design, check out Edward Tufte’s The Visual Display of Quantitative Information or any of his other books. You can also take one of his courses in your city.

You can also read:

• Design for Information by Isabel Merielles
• Data source for analysis
• The R code I used to analyze the data

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Moscow concert hall attack: Why is ISIL targeting Russia?

Deadly attack in Moscow claimed by ISIL affiliate leaves more than 133 people dead and approximately 100 injured.

More than 133 people have been killed and more than 100 others were injured following a brazen attack on concertgoers at Moscow’s Crocus City Hall before a performance by a Soviet-era rock band on Friday.

Assailants dressed in camouflage uniforms opened fire and reportedly threw explosive devices inside the concert venue, which was left in flames with its roof collapsing after the deadly attack.

Keep reading

At least 115 killed, more than 185 injured in attack on moscow concert hall, more than 130 killed in moscow concert hall attack, ‘heinous, cowardly’: world reacts to attack on moscow concert hall, moscow concert hall attack: what do we know so far.

Eleven people had been detained, including four people directly involved in the armed assault, Russia’s Interfax news agency reported on Saturday.

ISIL’s Afghan branch – also known as the Islamic State in Khorasan Province, ISKP (ISIS-K) – has claimed responsibility for the attack and United States officials have confirmed the authenticity of that claim, according to the Reuters news agency.

Here is what we know about the group and their possible motive for the Moscow attack.

ISIL’s Afghanistan branch

The group remains one of the most active affiliates of ISIL and takes its title from an ancient caliphate in the region that once encompassed areas of Afghanistan, Iran, Pakistan and Turkmenistan.

The group emerged from eastern Afghanistan in late 2014 and was made up of breakaway fighters of the Pakistan Taliban and local fighters who pledged allegiance to the late ISIL leader, Abu Bakr al-Baghdadi .

The group has since established a fearsome reputation for acts of brutality.

Murat Aslan, a military analyst and former Turkish army colonel, said ISIL’s Afghanistan affiliate is known for its “radical and tough methodologies”.

“I think their ideology inspires them in terms of selecting targets. First of all, Russia is in Syria and fighting against Daesh [ISIL] like the United States. That means they see such countries as hostile,” Aslan told Al Jazeera.

“They are now in Moscow. Previously they were in Iran, and we will see much more attacks, maybe in other capitals,” he added.

Though its membership in Afghanistan is said to have declined since a peak in about 2018, its fighters still pose one of the greatest threats to the Taliban’s authority in Afghanistan.

Previous attacks by the group

ISKP fighters claimed responsibility for the 2021 attacks outside Kabul airport that left at least 175 civilians dead, killed 13 US soldiers, and many dozens injured.

The ISIL affiliate was previously blamed for carrying out a bloody attack on a maternity ward in Kabul in May 2020 that killed 24 people, including women and infants. In November that same year, the group carried out an attack on Kabul University, killing at least 22 teachers and students.

In September 2022, the group took responsibility for a deadly suicide bombing at the Russian embassy in Kabul.

Last year, Iran blamed the group for two separate attacks on a major shrine in southern Shiraz – the Shah Cheragh – which killed at least 14 people and injured more than 40.

The US claimed that it intercepted communications confirming that the group was preparing to carry out attacks before coordinated suicide bombings in Iran in January this year killed nearly 100 people in the southeastern Iranian city of Kerman. ISKP claimed responsibility for the Kerman attacks.

Why is ISIL attacking Russia?

Defence and security analysts say the group has targeted its propaganda at Russian President Vladimir Putin in recent years over the alleged oppression of Muslims by Russia.

“Russian foreign policy has been one big red flag for ISIS [ISIL],” Michael Kugelman, director of the South Asia Institute at the Washington-based Wilson Center told Al Jazeera. “The Soviet invasion of Afghanistan, Russian actions in Chechnya, Moscow’s close relationships with the Syrian and Iranian governments, and especially the military campaigns that Russia has waged against ISIS fighters in Syria and — through Wagner Group mercenaries – in parts of Africa.”

All of that has meant that Moscow has become a focus of ISKP’s “extensive propaganda war,” said Amira Jadoon, assistant professor at Clemson University in South Carolina and co-author of, The Islamic State in Afghanistan and Pakistan: Strategic Alliances and Rivalries.

“Russia’s engagement in the global fight against ISIS and its affiliates, especially through its military operations in Syria and its efforts to establish connections with the Afghan Taliban – ISIS-K’s rival – marks Russia as a key adversary for ISIS/ISIS-K,” Jadoon told Al Jazeera.

Should the Moscow attack be “definitely attributed” to ISKP, Jadoon said, the group hopes to win support and advance “its goal to evolve into a terrorist organisation with global influence” by demonstrating that it can launch attacks within Russian territory.

“ISK [ISKP] has consistently demonstrated its ambition to evolve into a formidable regional entity … By directing its aggression towards nations such as Iran and Russia, ISK not only confronts regional heavyweights but also underscores its political relevance and operational reach on the global stage,” Jadoon said.

Kabir Taneja, a fellow at the Strategic Studies Programme of the Observer Research Foundation – a think tank based in New Delhi, India – told Al Jazeera that Russia is seen by ISIL and its affiliates as “a crusading power against Muslims”.

“Russia has been a target for ISIS and not just ISKP from the beginning,” Taneja, author of the book, The ISIS Peril, said.

“ISKP attacked [the] Russian embassy in Kabul in 2022, and over the months, Russian security agencies have upped their efforts to clamp down on pro-ISIS ecosystems both in Russia and around its borders, specifically Central Asia and the Caucusus,” he said.

In early March, Russia’s Federal Security Service, better known as the FSB, said it had thwarted an ISIL plan to attack a Moscow synagogue.

“The most compelling current motivation for ISIS-K to attack Russia is the Taliban factor. The Taliban is a bitter rival of ISIS, and ISIS views Russia as a friend of the Taliban,” said Kugelman.

Moscow’s close relations with Israel are also anathema to ISIL’s ideology, Taneja said.

“So this friction is not new ideologically, but is so tactically,” he told Al Jazeera.

There’s another factor, too: Largely away from the world’s attention, the armed group has regrouped into a formidable force after setbacks in Syria and Iran.

“ISKP in Afghanistan has grown in strength significantly … and it’s not just ISKP, ISIS in its original regions of operations, Syria and Iraq, also sees [an] uptick in operational capabilities,” Taneja said. Today, he added, it is “ideologically powerful even if not politically, tactically or strategically … that powerful any more”.

That poses a challenge for a distracted world, he said.

“How to combat this is the big question at a time when big power competition and global geopolitical churn has put counterterrorism on the back burner,” Taneja added.

How has ISIL responded?

ISKP social media channels are “jubilant” following the attack on Moscow, said Abdul Basit, a senior associate fellow at the S Rajaratnam School of International Studies, Singapore.

“They are celebrating the attack,” Basit told Al Jazeera, adding that supporters are “translating and recirculating the responsibility claim” issued by the ISIL-linked Amaq News Agency.

Basit said that ISIL’s method of operations involves amplifying a propaganda campaign in advance of large-scale attacks and this had been observed in recent anti-Russian messaging. Such attacks “add to the credibility” of armed groups, Basit explained, which then “increases the scope of their funding, recruitment and propaganda”.

More attacks are possible in Russia and elsewhere, he added, given the key role that ISIL recruits of Central Asian origin – particularly Tajiks – played when the group held territory in Syria. They have now returned to the Central Asia region and their intent to carry out attacks has now materialised in capability, Basit said.

Previous attacks in Russia

Moscow and other Russian cities have been the targets of previous attacks.

In 2002, Chechen fighters took more than 900 people hostage in a Moscow theatre, the Dubrovka, demanding the withdrawal of Russian troops from Chechnya and an end to Russia’s war on the region.

Russian special forces attacked the theatre to end the standoff and 130 people were killed, most suffocated by a gas used by security forces to leave the Chechen fighters unconscious.

The deadliest attack in Russia was the 2004 Beslan school siege which was carried out by members of a Chechen armed group seeking Chechnya’s independence from Russia. The siege killed 334 people, including 186 children.

Red Wings prospect observations: What I’ve seen in the AHL playoffs

GRAND RAPIDS, Mich. — The Red Wings’ top AHL affiliate is now officially on the ropes.

After a gutting, sudden 3-2 overtime loss to the Milwaukee Admirals in Game 3 of the Central Division final, the Grand Rapids Griffins’ season is now on the line in a best-of-five series, and that means it’s desperation time for the Red Wings’ top prospects, whose seasons hang in the balance.

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But even through two series, this playoff run has already offered up plenty to chew on when it comes to Detroit ’s farm system. Playoff performers have asserted themselves. NHL timelines have become just a bit clearer. And this week, 2023 No. 9 pick Nate Danielson made his pro debut.

So, ahead of Game 4 on Friday night, here’s what we’ve seen so far from some of Detroit’s top prospects in these playoffs.

Carter Mazur’s readiness

I don’t think I’d call Mazur the Griffins’ outright best player in these playoffs — Austin Czarnik is their leading postseason scorer and has looked the part — but he’s stood out for all the reasons you’ve come to expect. He’s a fearless competitor, and as a result, he consistently finds his way to scoring chances.

He did not score in Wednesday’s Game 3 but could have easily had a pair of goals. He thought he had one, jamming away at a puck in Yaroslav Askarov ’s pads before officials waved the goal off. He had another big-time look late in the game off a rebound.

So while Mazur trails Czarnik (eight points in seven games) and Jonatan Berggren (seven), it is in no way surprising to see him next up for the Griffins with six points in the playoffs and tied for the 10th-most shots on goal across the league this postseason.

“He’s awesome,” Czarnik said of Mazur. “He’s become a heck of a player throughout the year. So, it’s been fun to play with him. He makes simple plays, he makes good plays, and he can control the puck, handle guys, so it’s been fun to play with him.”

There’s going to be a ton of intrigue around the young collection of forwards going into Red Wings training camp this fall between Mazur, Berggren, recent top-10 picks Danielson and Marco Kasper, and 6-foot-8 Elmer Söderblom. What Detroit does this summer is going to have a big hand in determining how many spots those players are competing for. But from what I’ve seen in these playoffs, Mazur is the one who most often made me think, “How is this guy not on the team next season?”

The biggest question is going to be strength, as Mazur is still a bit stringy for the kind of hard-edged, tenacious game he wants to play. And it may be that Berggren’s lack of waiver exemption still gives him the logistical edge in actually handicapping a favorite. But Mazur looks like he can bring the hard-area scoring the Red Wings need, and while he’s still young, he is now 22. I think he can help them soon. He’s already a very important piece for the Griffins.

William Wallinder’s growth

There weren’t many major positives for the Griffins in Game 3 because, despite the game going to overtime, Grand Rapids was decidedly out of rhythm for the first two periods. Shots were lopsided in Milwaukee’s favor until the Griffins came out roaring in the third.

But Wallinder was a bright spot for me. He had Grand Rapids’ only goal in those first two frames, creeping down into the left circle, and while the shot itself wasn’t anything remarkable, Game 3 was probably the most comfortable I’ve seen Wallinder in Grand Rapids. He had a goal and an assist and a very notable one-on-one defensive play in the third period, using his body to kill a would-be chance off the rush and spring the Griffins the other way in transition.

Wallinder’s best tool is his skating at 6-4. But what will really make him an NHL regular is if he can continue to incorporate that physical defending into his game. A great skater with length and some offense is a strong starting place; a great skater with length, offense and physicality is the profile of a potential regular. So it was encouraging to see that kind of performance from Wallinder.

“Just trying to be a little more intense in those situations,” Griffins coach Dan Watson said. “Trying to end plays harder, and it’s just being harder on the puck, harder on people. That’s where his game’s gotta grow, and it’s continuing to grow. And he’ll learn that. But you can see it in moments: He’s a special player, he’s going to be a real good player here. Obviously scored that big goal, great play, but now those areas around the net, down the walls, the battle areas, that’s where he’s gotta grow his game.”

Wallinder is ticketed for another season in Grand Rapids, and I’m eager to see how much he’s able to embrace those physical challenges.

Nate Danielson’s debut

The story of the week so far has been Danielson’s arrival in Grand Rapids following the conclusion of a stellar WHL playoff run. Danielson was a force for Portland in the postseason, putting up 24 points in 18 games, tied for fourth in the WHL. That was a continuation of an offensive eruption, doubling his assist numbers after the trade to produce at nearly a 1.5-points-per-game rate in the second half.

That has been, understandably, the cause for a lot of excitement — and so has been his subsequent assignment to Grand Rapids.

There has been an adjustment period, though, which only makes sense. Danielson played his first two games without so much as a full practice. The Griffins coaches went over their systems with Danielson without really being able to do a full on-ice install, instead having to rely on video and a slideshow of how the Griffins play. And Watson noted after Game 3 “he’s not going to miss coverages, he’s going to be smart with the puck,” which speaks to how well he picked up those systems despite the circumstances.

But that adjustment factor is still real, particularly when it comes to what Danielson can make happen with the puck jumping up a league and into a playoff series. The detail and maturity in his game still has stood out, but it hasn’t yet led to many dangerous chances, as Danielson combined for one shot in his first two games. And again: That only makes sense for the circumstances.

“I like him,” Watson said. “Right now he’s figuring it out, but he’s a smooth skater, thinks the game extremely well. He made some nice plays here tonight. … I think he’ll get more comfortable next game and hopefully he’ll be a factor, but with that said it’s still a lot of pressure on him to come in here and jump into the series and get going. But he’s handled it extremely well, he’s a mature kid, he’s very responsible on the ice, and I trust him out there.”

Danielson said he didn’t think Game 3 was his best game and pointed to how tight it was on the ice and the challenges of getting going.

“It felt like a lot of times you get the puck, even if you beat the first guy, there’s a second guy right on you,” Danielson said. “That’s probably the biggest adjustment, I think.”

It was always going to be a big ask for Danielson to make an impact jumping right into this kind of situation, and really, it’s more for his long-term benefit than anything. We’ll see how he adjusts if the Griffins can continue to stay alive.

Marco Kasper

We’ll go quicker on Kasper because we talked about him in depth in the last prospect update , but I think the Red Wings will be happy with what they’ve seen from Kasper in this playoff run. He’s got five points in seven games these playoffs, headlined by a three-point outing in Game 1 of this series, and continues to be the kind of hard-nosed two-way player Detroit drafted him to be. He had a couple of nice chances turned away in Game 2 of this series and could have had a couple more potential Grade-A looks in Game 3 if Berggren was just a hair quicker getting him the puck as he drove the net.

I’ll be fascinated to see where his game is come fall. My gut instinct is that some more time in Grand Rapids, playing top minutes and getting real power play usage, would help him. But he’s got a lot of the elements the Red Wings will be looking for this summer and has steadily improved throughout the season. A big camp and preseason could make him a tricky decision for Detroit. He’s an easy player to like.

Sebastian Cossa

Cossa had a rocky outing in Game 2, so one of my biggest questions coming into Game 3 was how he’d bounce back. Watson coached Cossa last year in Toledo, as well, so I asked him ahead of the game how Cossa usually responded.

“I think if you look at any time he’s had a loss and maybe not played up to his standards and our standards, he’s had a great bounce-back game,” Watson said. “That’s been part of his growth is just that mental fortitude and making sure he’s mentally dialed in. Full confidence he’s going to have a great bounce-back game. … That big Game 3 for him (in the first round), he was huge against Rockford early on, allowed us to get a lead and play with a lead, and he made some big saves early. And we’re going to need him to do that again tomorrow.”

That proved prophetic. Cossa took a barrage of shots through the first two periods and kept the Griffins in the game despite the lopsided shot disadvantage. He stopped all 11 shots he faced in the first and was the biggest reason Grand Rapids was still within range to make a third-period comeback and force overtime. In the end, he stopped 27 of 30, and the winner that beat him in OT was a deflection that he had no chance at.

It was a good outing, even in the loss, and it gave the Griffins a chance. I’d call that a successful bounce-back, just as Watson predicted.

Albert Johansson

Johansson has been playing a big role all playoffs for the Griffins. He’s been playing on their top pairing — first on the right side with Simon Edvinsson on the left, and more recently on the left side with Edvinsson out (day-to-day) with an injury. In this series, he’s played over 21 minutes per game. That speaks to the coaching staff’s trust in him.

He’s got three assists in seven games, including one Wednesday, but point production isn’t really the make-or-break of his game. In fact, to hear Watson tell it, his subtlety is part of the appeal.

“He’s responsible behind that blue line,” Watson said. “I think his mobility helps him quite a bit defending and I just think he sees the plays really well, kills plays on line rushes and makes a good first pass. And I think he’s a guy that you have to coach, you have to see him a lot to appreciate what he does because some games you’re not going to notice him. And that means he’s doing the right things. And other games — I remember one game he scored two goals by having a good one-timer. So he can do a lot of different things, but when you don’t notice him is when he’s having his best games. But you have to see him enough to appreciate it.”

Johansson is expected to be on the Red Wings roster next fall, no longer exempt from waivers. He can do a bit of everything, but he doesn’t scream go-to power play QB or top penalty killer right away — though I do think the latter unit is more likely to be his special teams fit. Perhaps he’s a bit like Olli Määttä in that way.

His role and playing time, then, will depend on how well he can demonstrate his overall value to Red Wings coach Derek Lalonde and his staff through the preseason. But while he will have to make that case on the ice next fall, it doesn’t hurt to be able to point to playoff reps like these in the meantime.

(Photo of Nate Danielson: Nicolas Carrillo / Grand Rapids Griffins)

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Max Bultman is a staff writer for The Athletic covering the Detroit Red Wings. He has also written for the Sporting News, the Pittsburgh Post-Gazette and South Florida Sun-Sentinel. Max is a graduate of the University of Michigan, where he covered Michigan football and men's basketball. Follow Max on Twitter @ m_bultman

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Assignment Moscow: Reporting on Russia from Lenin to Putin Hardcover – July 23, 2020

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The story of western correspondents in Russia is the story of Russia's attitude to the west. Russia has at different times been alternately open to western ideas and contacts, cautious and distant or, for much of the twentieth century, all but closed off. From the revolutionary period of the First World War onwards, correspondents in Russia have striven to tell the story of a country known to few outsiders. Their stories have not always been well received by political elites, audiences, and even editors in their own countries-but their accounts have been a huge influence on how the West understands Russia. Not always perfect, at times downright misleading, they have, overall, been immensely valuable. In Assignment Moscow , former foreign correspondent James Rodgers analyses the news coverage of Russia throughout history, from the coverage of the siege of the Winter Palace and a plot to kill Stalin, to the Chernobyl explosion and the Salisbury poison scandal.

• Print length 256 pages
• Language English
• Publisher I.B. Tauris
• Publication date July 23, 2020
• Dimensions 6.44 x 0.99 x 9.37 inches
• ISBN-10 0755601157
• ISBN-13 978-0755601158
• See all details

Editorial Reviews

“ Assignment Moscow exposes how the Moscow correspondent has had to adapt to multiple manifestations of censorship, or compete with state-run media, the severity of which has ebbed and flowed with changes in regime.” ― History Today “Reporting from Russia has never been easy; Rodgers vividly captures the changing fortunes of Moscow correspondents over the past hundred years, as they penetrated the mysteries of life in Russia and brought them to our newspapers and screens. Some were duped, some were fellow-travellers or spies; most battled against censors and blank-faced politicians; all have helped to shape our understanding of the world's biggest country.” ― Angus Roxburgh, former Moscow correspondent for the BBC, Sunday Times and Economist “Writing about journalism in Russia since the revolution, James Rodgers rightly emphasises that to understand Russia you have to talk to people of all kinds. But he argues that even correspondents who knew the language and the history found it hard to report dispassionately because of official obstruction and their own emotional involvement.” ― Rodric Braithwaite “A highly original, engrossing and accessible book, Assignment Moscow stands out among journalistic accounts of Russia for its subtlety, humility and historic scope. It tells the story of British and American journalists who aimed to throw light on Russia from Lenin to Putin, and in the process illuminated the West itself.” ― Arkady Ostrovsky, Author of The Invention of Russia: The Rise of Putin and the age of Fake News, Winner of the 2016 Orwell Prize “It is hard to believe that in the torrent of books published on Russia each year, that one could come along as original and valuable as Assignment Moscow. One comes to appreciate the service of our reporting men and women in Moscow. For all their fallibilities, without their dedication, we wouldn't have half the understanding of Russia that we have today, imperfect as it will always be. We therefore owe them – and especially Rodgers as journalist, teacher, analyst and cataloguer – a huge debt.” ― James Nixey, Chatham House

About the Author

Product details.

• Publisher ‏ : ‎ I.B. Tauris (July 23, 2020)
• Language ‏ : ‎ English
• Hardcover ‏ : ‎ 256 pages
• ISBN-10 ‏ : ‎ 0755601157
• ISBN-13 ‏ : ‎ 978-0755601158
• Item Weight ‏ : ‎ 1.23 pounds
• Dimensions ‏ : ‎ 6.44 x 0.99 x 9.37 inches
• #1,171 in Media & Internet in Politics (Books)
• #1,247 in Russian & Soviet Politics
• #5,588 in Journalist Biographies

About the author

James rodgers.

James Rodgers writes books on international affairs, especially armed conflict. His work has a focus on how the stories of those events are told to the world. Much of his writing draws on his own experience reporting from the former Soviet Union and the Middle East as a journalist from the 1990s onwards. During his BBC career (1995-2010), James completed postings in Moscow, Brussels, and Gaza where, from 2002-2004, he was the only international correspondent based in the territory. His numerous other assignments included New York and Washington following the September 11th attacks; reporting from Iraq in 2003 and 2004 during the United States-led invasion; and covering the wars in Chechnya.

James now lectures in International Journalism at City, University of London. He still works as a journalist, too--contributing work to the BBC, NBC Think, Forbes.com, Monocle Radio, and others.

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