Scot Pierce has written an article for the January/February 2012 issue of The Commercial Factor entitled, “A Primer on Subordination Agreements.”

Although subordination agreements are common, the ramifications are often misunderstood.  Any party to a subordination agreement needs to understand the ramifications of what they are signing in order to make better business decisions.  Ultimately, the situation and relative bargaining power of each party will have the strongest influence in determining the final terms.

Please read the article on page 19:  http://www.factoring.org/newsletters/commercial_factor01-12.pdf