RTS Factoring, beware...

Discussion in 'Ask An Owner Operator' started by crocky, Jun 1, 2021.

  1. crocky

    crocky Road Train Member

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    This is a long one but I wanted to share my experience with a 'supposed' quality, factoring company. Thatr being RTS financial services

    (The TLDR version: RTS factoring decided I wasn't doing enough volume for them to factor so they canceled my account. 3 months later they are still holding my company hostage refusing to release me. I have verified all invoices have been paid they have no reason to hold my company hostage but still are and will not tell me why I haven't been released)


    1st the fuel card side of RTS I've had zero complaints or issues with.

    The factoring side of RTS, is a whole different ball game. It's a separate department, company or whatever. I haven't been able to get anyone including my agent on the phone for literally months at RTS Factoring. No one answers the phone. I've never once been called back from a voice mail message either.

    (800) 860-7926 That's their number, try it.. rings and rings when you select one of the options if you don't know an extension it either goes to voice mail or just hangs up.. It doesn't matter if you select option 2 or 3 it rings and hangs up.. (I can't even get a voice mail option now)

    It wasn't like this when I 1st signed up. Back in early 2020 I signed up for the fuel card. I wasn't factoring at the time because I was still a new authority and wasn't doing a lot of volume. I was considering using them for factoring at that time but I was just outside of 90 days on my Authority and it was winter so I wasn't doing a lot of volume. (flatbed hotshot)

    I ended up signing with them for factoring around March of 2020 I was told at that time there was no required volume and I told them I don't run crazy, I take time off at home. I was told at that time there were no issues with this. I signed up factored a couple of loads then the entire country went to #### with Coronavirus shutdowns.

    Keep in mind, I'm a hotshot, I don't have a sleeper, just had a makeshift bed in a crew cab truck at that time. I wasn't set up to cook food in my truck and I tend to stay in hotels after I drop a load and I'm looking for my next.

    Everything started shutting down, flatbed freight went to absolute nothing at this time. There were brokers trying to pay $1/mile to Cali for a full load. It was ridiculous, restaurants were closed, I wasn't sure about staying in hotels at that time so I went home.

    I ended up sitting at home for 2 months because rates were absolute garbage. I was called by RTS at that time and I explained the situation. I simply told them I'm not going to run loads for gas money, I was told by the person I talked to that a lot of guys were doing the same thing. She said everyone was saying the rates were horrible.

    Anyway, I sat home those 2 months, flatbed freight was garbage and then add in the issue of it's harder for hotshot guys.. So needless to say I wasn't running out of FL or the South East for the rates that were offered.

    About that time, cars started going off the wall in FL. Coronavirus had filled the auctions and they had no room. I started running cars at that time. I was getting $600-700 a car to run from Central FL to SC & NC. I was getting $700-1000 per car to run to AL, MS, LA.

    Needless to say, I started hauling cars on my flatbed. I was making way more running 2 cars out of FL regionally than I did with flatbed my 1st months in business. While the rates eventually dropped, I ran cars all through the pandemic and I still run them today. (I usually do oversized, trucks, 4wd's ect stuff normal car guys don't like)

    I talked to RTS again during this time and told them, I.m running cars and I really don't have anything to factor at this time because the flatbed rates were too low but when flatbed rates come back I'll be running flatbed again. That was always my plan. I never once hid that I was running cars when I talked to them.

    Fast forward to early 2021. Flatbed rates are coming back while cars are dropping off a bit, by this time I had started setting up to run flatbed again. I put a F550 on the road and at the very end of Dec I bought a brand new Big Tex 25gn 40fter.

    I ran a few equipment loads off cental dispatch and various cars here or there the 1st 2 months of the year always COD or fast pay but it was all stuff I couldn't factor. I contacted RTS at this time and asked if my factoring account was still good because it had easily been 10 months since I factored anything. I was told at that time that my account was active and ready to go. I had a new agent at that time as my other agent had moved to another position.

    This begins the problems...

    I leave FL with a bucket truck to NC. Can't factor it it's $1k COD. I drop it the next day, I pick up a Military load from NC to Cali. Paid $5,2k but RTS wouldn't factor that load because the broker was a new company. (I ran the load because they offered quick pay and I knew I'd get paid on a military load). Anyway, that was 1st week out this run.

    I wasn't used to Cali and had a bit of a problem getting a load out but ran two trucks to OKC mid-week after sitting 3 days. Can't factor them they are COD's. (RTS doesn't factor cars anyway) I'm in OKC it's Friday. I get two large AC units going back to Cali.. I do a crane unload early Monday and attempt to upload the invoices to RTS's website.

    This is when I realize I'm locked out of my factoring account. I try to call and just get voice mail. My "new": agent never once answered the phone. I left voice mails I tried to call the mainline nothing. Can't get ahold of anyone. I hit a hotel for the day because I wanted to take my time and find a good load out of Cali for Tues and sort out the issue with RTS.

    I end up getting ahold of my original agent because I still had his contact. I explained what was going on with my account. He told me to just send him the invoices and he'd input them manually until they get my account sorted out.

    I sent the invoices he inputted them and I could see them in my account but I just didn't have the option to upload them myself. Anyway, this is all still early in the day. They were in before the deadline and should payout that night.

    Tues comes I still haven't found a load I like but more importantly, my factored load never paid out. This begins the problems.. I email back to see what's going on and my contact can't seem to tell me why it didn't pay out nor why I still have no access to upload anything.

    Finally, I get an email back from him asking why I stopped factoring loads in (2020) until now. I explained via email the situation about coronavirus and flatbed rates being bad. I told him I had been running cars all that time. (I never once hid I was running cars when I talked to RTS previously)

    He doesn't email me back or call me, doesn't ask to verify anything.. I just get an email with a PDF attached saying RTS is no longer doing business with me and not factoring my loads.

    Keep in mind they still have my invoice I was trying to factor.. and I'm at a loss to what is going on at this point.

    continued (post limit)
     
    Last edited: Jun 1, 2021
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  3. crocky

    crocky Road Train Member

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    I ask him to call me, which he did. He said RTS dropped me because they don't factor cars. I explain, that I know this, which is why I hadn't factored anything while I was running cars. I explained again on the phone that I was running cars because freight was so bad during 2020. I told him look at the invoice I sent you, it's air conditioners, not cars. He also asked if I was doing at least $10k/month volume in the email. I answered this with I had been doing an average of $15k/month so far in 2021 but it was mostly cars.

    I told him again what was going on and that I was trying to get back into freight and this was the 1st load I could factor. They reinstated my account.. ( I was really put off by this and should have left RTS at this point). It was extremely unprofessional to not at least verify the situation with me rather than just up and cancel my account.

    While on the phone He asked me again at the $10k a month. I straight up told him at that point that no I was not doing $10k/month in freight because I had been doing mostly cars. I said I expect to get to that volume but I'm doing mostly cars now which is why I need to get the factoring active again. (The invoice I was selling them for the AC's was ($3k) meaning I could obviously do $10k but I wasn't doing it at that point, not in freight.

    So they reinstated me, I was able to upload the invoice myself at that point. However, the invoice he uploaded was showing in my account still and was "pending". meaning there is now duplicate invoices in my account for $6k total.. I contacted him and told him of this situation that there has already been a lot of problems getting me reinstated and I don't want them to accidentally pay me twice on the same invoice and then have those problems.

    Ok, so now everything's good or so I thought.. In meantime because of the trouble, I was having, I didn't want to risk factoring another load until I knew the problems were sorted. I ended up piecing together a few COD loads from Central to get back out of Cali.

    I had an old bulldozer and a Side by side going to TN paying me $2,5k. on the way out, I picked up a Dyno machine that was listed on Central for some reason in AZ that was going to FL paying $1,7k. (that was my way back home). The idea was to drop the dozer in TN, pick up a car from TN to FL to add to the other partial I already had.

    That was the plan however after I loaded the Dozer in Cali and headed to AZ I had a slight fever and a very mild headache. The next day I'm in AZ and I'm getting the Dyno but I'm starting to worry I have cronavirus. I told the dude when they loaded and I stayed away from them. I get loaded and there is also another issue.. RTS didn't pay me again for my invoice.. I'm now a few days into this at this point..

    Yeah, I ended up getting cronavirus.. I did a no-contract drop of the Dozer and Side by side in TN. The owner was still in Cali and his friend was supposed to meet me at the house but got hung up. It was better that way and I took pics and the owner sent me the money via cash app and I was gone.. RTS still hadn't paid me at this point.

    Anyway.. I'm on the road, sick with cronavirus, and dealing with not being paid by RTS. I didn't get anything else in TN because I didn't want to risk contact with anyone. I hadn't been tested but I knew I had CV by this point. I had a lot of mild symptoms ranging from the whole realm of what you get. I delivered the Dyno, in the blazing hot FL sun and that was my worst day with CV. Again I made sure the people stayed clear of me and told them I was certain I had it.

    I'm now unloaded at home it ended up taking RTS over 2 weeks to pay me for that load of AC's . I sent in the invoice on 03/08 but didn't get paid until 03/22. (The broker themselves would have quick paid me in 2 days for the same 3%)

    I was back in FL at that time quarantining myself. I was tested for CV and was positive.. but that next week I had next to no symptoms. I quarantined about a week and a half by that time someone from the state health dept had called me and discussed my symptoms with them and I explained the sitution of being on the road the 1st week but they said based on my symptoms and the time frame that I didn't need to quarantine any more.

    Somewhere around this time, I get an email from RTS saying that I "failed to perform" to their standards and they were no longer going to factor for me.. At that point, I was over it, I simply had to laugh it off.. (I did a tad under $15k in 3 weeks but could only factor $3k of it) Keep in mind had they not had their screw up of not paying me, I would have run freight out of Cali, not the COD stuff I ended up taking.

    Once again, I contact the only contact I have at RTS factoring.. (still can't get anyone else on the phone) I called him and we agreed to go our separate ways. He then tells me of some other factoring company that would work with my volume levels and tells me to contact them.

    I tell him at that point, that I'd need a release from RTS so I can move on to another factoring company. He tells me that they can't release me until the load I factored pays out. I asked him will RTS automactly send me a release or will I have to contact RTS to get it. He tells me it would be automatic but I didn't need to wait for that, that another factoring company could buy out my contract.. (This should have set of warning lights but I was already over this)

    It's now 6/1.. I factored the single invoice with them on 3/8 and they paid out 3/22. They still refuse to release my company. I've contacted them Friday and again today and I'm being told I have to tell my new factoring company to contact them.

    I asked why? No answer.. They are essentially holding my company hostage and I believe they want to try to force another factoring company to buy out my contract. Being they refuse to tell me why they won't release me or why I need to have another factoring company contact them, I can only assume they are trying to hold my company hostage for some unknown reason.

    Here is the kicker.. the only contract I signed was in 3/2020. It wasn't planned but when I went back it was actually a year later in 3/2021. The contract I signed in 2020 had no minimum requirement for the amount I factor. When I started back up in 2021 I didn't sign a new contract meaning my contract with them has no min requirements.

    I get that they can decide to stop doing business with me for whatever reason,. but the $10k/month is not anything I've signed or agreed to. Meaning they are now holding my company hostage because I factored a single invoice and then they canceled my account. They never had me sign an updated contract with new terms.

    I know for a fact, that they've been paid out on the single invoice. I've done 2 more loads for that same broker both via quick pay but I've asked them if the previous invoice was paid out and they said yes (it was 30day pay, meaning RTS was paid for it well over a month and a half ago.

    RTS still refuses to tell me why I need to have a new factoring company "contact them" and they still refuse to release me. This has caused me problems because it's directly limiting the freight I can go after.

    I'm a single-person company. I don't have the time or ability to run around chasing every broker I run a load for to collect, or try to follow up with them on payments from 30 or 45 days ago.. I'm a one-man operation, I drive, I book my loads, I do my billing.. I can't deal with chasing brokers who haven't paid.

    That's why I wanted a factoring company so I didn't have to deal with that hassle. Due to this issue with RTS I'm still not running much freight, and I'm running mostly cars. With cars I do mostly COD and deal with a hand full of brokers I know pay without chasing them.

    I know a lot of youtube and social media guys spam RTS for their $100 finders fee, but I wanted to share my experience with them.. I realize if looking at this from RTS's viewpoint, that my 1st year would be suspect to them, but hey, it was a Pandemic and the economy was crashed, WTF was I supposed to do? I don't think I've done anything wrong and I've always been open and honest with them anytime I talked to them.

    Last.. the most ironic thing... the week after RTS canceled my factoring account for "failure to perform".. The Fuel card side of RTS called me up and told me due to the volume of fuel I buy, that Pilot was jumping my discount from .10 to .45 cents. (essentially Pilot is now matching the Circle K price I was getting, which is where I had been filling up)
     
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  4. crocky

    crocky Road Train Member

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    BTW, I'm posting this here because I want it to be a warning to others but also because no one at RTS will answer their phones. My one contact at RTS for factoring is hit or miss if he will even answer an email..

    Meaning maybe someone in a higher-up position will be forced to read my post now that it's public on a trucking forum.
     
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  5. pavrom

    pavrom Road Train Member

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    ...they tried to sign me up ... I'm glad i didn't
     
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  6. Snailexpress

    Snailexpress Road Train Member

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    As a president of single-person company I would point on your mistake about factoring. Factoring company isn't your accounter. They doesn't care about for how much you invoiced broker, did broker paid it at full. They simply charging you for lending money to broker to pay you your money.
    In case broker underpay you the factoring company will simply and silently withdraw money from your account later. Now you lost any leverages to get your payment at full.
    Broker - We paid everything to factoring company.
    Factoring company - we paid you everything broker paid.
    You are out of loop.
    With today's smartphones or computer very easy to keep invoices and payments tracking. If crocked broker cut your payment you will respond immediately.
     
  7. crocky

    crocky Road Train Member

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    I know there is always an argument for factoring or not factoring. For myself, I felt it was the better option and it's why I only went with a well-known company. . But yet here I am having problems with a factoring company....

    What gets me is there is absolutely no reason for them to do this. They have been paid, their is nothing they are going to gain by not releasing my company. Being they wouldn't answer phones, all my communication is via email, so I have a written record of everything.
     
  8. danny23tx

    danny23tx Road Train Member

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    A single truck company probably shouldn't be factoring . I cant think of a reason why its a good business model unless your broke and in debt and in that case I think a change of scenery is in order . I use the Rts fuel card but thats it with those guys .
     
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  9. Snailexpress

    Snailexpress Road Train Member

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    What is interesting I have few brokers who pay next day free of charge. They are mid size brokers.
     
  10. crocky

    crocky Road Train Member

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    It's one of the reasons I've stayed with cars as much as I have. Most of my loads are COD, but I have a few companies that arent' but they pay quickly.
     
  11. crocky

    crocky Road Train Member

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    That's very easy to say.. If you've been in business a long time and have brokers you tend to work with and know they will pay you without hassle. It's an entirely different thing when you are a new company. Not to mention at a time we just came out of the trade war where rates went to hell only to go directly into a Pandemic where rates went to hell.

    It's easy to judge others who are just starting out when maybe you've been in business a much longer time. Fuel prices are ridiculous, insurance rates are much higher for us newer companies. Not everyone has the ability to sit around waiting 30-45 days to recoup all that money. Assuming no issues on top of that..

    Almost every business in existence takes on debt of some sort to run. Factoring is simply a way to get your money faster at the price of a small percentage, without having to worry about debt or requiring endless supplies of operating cash.. I don't think 3% is too much to get it the next day vs 30-45 days..
     
    Last edited: Jun 1, 2021
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