Freight Capital for factoring - your experience?

Just to add a little caution to what Red is saying and how he is using factoring (and I still owe you for this one ).

Be careful if you are getting in big with a factoring company the way Red is. If you are not happy if can take well over 60-days to unwind the relationship if you can't find another that is willing to buy you out.

And from my little research on the industy, if you are looking for a buyout you better have good credit, great volume or both.

 

Wow, i've never had an issue with them. When my accounts get over 45 days they allways call the customer to find out about pay. Not once have i had a funding issue. But like anything else some one might go 10 years with no issue someone will have trouble from the get go. I looked at alot of companys before choosing them and for me the where the easiest to work with. But to be clear i do not use them that much only for 4 or 5 slower paying brokers and shippers.

 

I hate having to babsit my account with them they seem to make to many mistakes.I .guess if you dont catch there mistakes ,they would seem to be a good factoring company.

the time it all takes to mail off loads to them sucks they need to start accepting scaned and emailed load reciepts like most companys are doing now days,,,, would save me a but load of trouble if they did.

 

I do my own factoring save me money

 

Never used this company but I do use Apex. Have had very good customer service and responsiveness is excellent. Pay 2% for what I thought was 90 days but just found out it's 60 days. We get a fuel discount and EFS account through them. Settlements are always correct and on time.

Bad news is they want all our invoicing, even Landstar, Mercer and others with 2 to 10 day payment terms. We ran some outside Apex and they somehow found out and threatened to close the account.

 

I do not recommend Freight Capital. They do not have a one page agreement. They will present you with a one page to sign but there is a web site listed on there to go to to read more. It is 8 pages that need to be combed over by a lawyer. The minute you sign up you are locked in. It will COST you to get out. Customer service is great as you are signing up but things will go down quickly once they have some of your invoices. They have a California office and a Memphis office. You will get bounced around. They know you are stuck once you sign that agreement with the " 90 day Relationship Period" that has a cancellation notice requirement of 60 days, certified letter only. So, you only have 30 days to test their services. After that 90 day period you are locked in for a year. Oh, you can cancel any time they will tell you.. but what they won't spell out is how much they will charge you. Their $295. start up fee and the 2.95% teaser rate isn't enough for them. You will be screwed.

 

I am not trying to say they are great but when i went with them they where the best choice for me. Bin using them on and off for certin accounts for 4 years and never an issue with them. The start up paper work was easy and there was no 8 papes on a computer i had to go through. I have a total of 4 documents from them when i joined that states there terms and conditions. I have every thing here i printed and saved from them. They allways answer my questions and i get someone every time i call. My money is there when they say it will be. How are you stuck i can factor or not factor any company i want but once you factor a customer once you have to keep factoring that account. Thats with any factoring company. If you have to factor every single customer yes then your stuck no matter who you use but IMO thats just bad to do. Maybe they have changed there set up since i started useing them. Like i said not saying they are great or sticking up for them just saying i have had no issue with them like the otheres are claiming. There are some factoring companys out there that want your first born.

 

About being "stuck" with Freight Capital.. They won't release my reserves yet even tho they have been paid by the broker and they have got their percentage. They are holding my left over 7 % for , gee, i don't know..BECAUSE THEY CAN!! They will not release the UCC hold so I can hire another Factoring company without a$ 500. fee. A UCC filing cost a few dollars to put on and release. So, greed, again. While I will not use Freight Capital ever of course, I can not use another factoring company without paying Freight Capital their ridiculous fee to release me. Probably won't use a factoring company anyway. It's a hassle but most brokers that are decent can QP... just thought a factoring would make things flow better, not worse.

 

Lets put it this way, if there holding your reserve and theres no issue on the account i would send them a cetified letter stateing you want it released in a certin time frame and if not your turning it over to a lawer. I just looked through all my paperwork and isee nothing about a $500 fee must be something new. Again if you have bin with them long enough to meet there term requirements send them another letter stateing the same for the $500 fee as for the researve. My paperworrk states there is no fee or recourse to leave once i met there 6 month term. Good luck

 

I have done 3 invoices with them my first run picked up on Wednesday and droped late Friday I put it in the mail at the truck stop but did not leave untill Monday so Tuesday when they got it I was already six days in it and y'all all know the broker don't start there 30 days untill they get there invoice and they send reg mail that can take up to five days so be4 the broker gets the paper work your 13 days into your load so that's how every invoice I have done with them has gone over 45 days
I paid the start up fee my first invoice my first run cost me over $600 I have not seen my other 5% yet I called them on that they said I get it back after the first of the next month.......I'm waiting!!!