Load factoring.

[person]

Joymax, Thank you for the education.

[ncnewbie]

Anything not illegal is arguably legal. For instance, it's legal for the factoring company to pay you 1 minute after delivery. However, your contract with them probably stipulates a different specific time period like 25 days. In the realm of legal periods to pay, they have now established a period specific to you. One purpose of contracts is to specify "legal" things that pertain to the 2 parties in the contract.

Answer these 2 questions:

1. Does your contract with D&S specify in writing a time period in which you're to be paid?

2. Does your contract with D&S specify in writing they will impose liens for any reason and delay your payment?

If the answers are YES to #1 and NO to #2, you should point out to D&S they are violating your contract and that you're having your lawyer look into remedies including damages for lost revenue.

As I see it, any delay D&S has in collecting it's money in it's contract with the broker has no bearing on whether they should pay you as long as you lived up to your end. Of course if your contract stipulates otherwise...........

Good luck with the outcome Joymax!

[Joymax_Trans2]

ncnewbie,

There was no contract. So the answer to Q1 & Q2 is NO.

I also received a real good understanding of what is meant by non-recourse. There is non-recourse if there is a credit issue with the broker. Let's say the broker filed for bankruptcy - then there is non-recourse to the Carrier. If that is not the case and they are still doing business but just not paying the factoring company then the factoring company can seek payment from the Carrier.

I was under the impression that is was best not to sign a contract but in reality if you are going to deal with a factoring company, seek one using a contract because everything is spelled out and there are no grey areas. With no contract - you have no idea what's going on with the factoring company, legal or unlegal.