How did that go? Did you end up using them?Has anyone used this company? They are calling me 3 times a day for freight . I am not certain they are a carrier?
I believe this is only the case if you sign off to the factoring co's legal agreement ( it's escaping me right now the actual legal name of this document) . In our 11 years of being in biz, we have never signed these agreements and we have paid the factoring co's within terms with not issues. I believe that if we did not have a history of good payment, the factoring co's may push us more to sign these agreements. The point is that if we are agreeing to a service provided to us at a certain rate, in many instances we don't know it's being factored until the bill comes to us as such so in my mind, that is not my liability unless these terms are negotiated prior.The factor has no interest in policing 'best practices' in our industry, but of they have a new client that could be doing something strange (like passing off freight to another party), factoring the invoice then not paying that other party then you've done them a favour as they may now limit the amount of finds that can be outstanding on the account at a given time.
Yes, if you pay the factor and Carrier A chooses not to pay Carrier B you may become liable to pay Carrier B when they call your customer.
I hope the funds flow as they should,
Mike