No more factor for me.
This above article reveals exactly what I experienced with FIRST LINE FUNDING GROUP out of SD.
The whole company is run by women.I am like, women are mopre likely to treat me better than any other factoring company.I had called about 6 factoring companys prior to signing onwith them.Most of them wanted a 6-12month contract at between 4-6% factor rate.The better rate out of all of them was Apex which I think was a non-recourse at 3% and a 90% advance until the invoice was paid by the broker/shipper.
So, I signed a 6 month contract with First Line Funding group which was a recourse factor at 3% upon an invoice paid within 30days.3.5% factor upon an invoice paid after 30 days and so on............
I sent my first 4 bills in.I even sent in LS and Mercer just to keep them off my back.Although there was no limit in the amount of invoices I was to send them, they kept emailing me about sending in more invoices.
The first straw was when they were taking too long to bill the brokers.It took them about 3 weeks to even start billing the first broker.Because of an "assignment" issues with LS and Mercer, after they billed them, these 3PLs sent me the money instead of mailing it to First Line Funding.I then sent Mercer and LS' checks that I recieved.The other two bills was not being paid fast enough from my opinion, and I had to go behind their back and call these brokers to pay them on time.In my opinion, they intentionally wait soo long to bill the brokers and in that case they can make more on their end.Numerous phone calls I made to them was never returned.After I made sure they got paid by every broker, they realised I had stopped sending in anymore bills(remember there is no minimum amount to send in).They still never returned my calls about getting my "reserve" on those 4 bills becasue they realised I wasn't sending anymore bills.
After reading Donna Ryun's OOIDA article, I have taken the $500 they owe me as a loss, and so no more factoring for me but rather a quick pay(1-4%) with any broker with good credit.
The only thing I might be missing is getting a fuel card from Apex Factoring or anyone else that may have 20cents off the pump price.
I am still researching on a better fuel card like B2B or schneiders'.
Just like you said Chris, my credit Union may also be a good source in getting the recievables.
Last edited by henboy1; 03-13-2010 at 06:59 PM.
|