First assignment

Had my first assignment. It was relatively easy, but odd. A company that handles cash. Reminded me of the co. in LI that held $12MM customer cash. And spent most of it. They were pikers compared to this co. There's nearly $200MM in a custodial account. Sounded like they didn't keep the account properly segregated, and likely can't the way they set up their business. AR cash is co-mingled and their own losses are as well. Could be a mess if this were a melt down, since the companies likely to lose out in the custodial account won't pay their bills.

Worse, the loan was structured on future cash based on historical recurring revenue, not AR. They are essentially pinning their hopes on deferred revenue, because if the company melts down there may not be anyone willing to take over their contracts. Meanwhile, they seem to be doing OK. But they should probably stop taking fraud risk.