Scout Logistics and Grand Financial and Factbanc partners

youngtea

Active Member
10
Do factoring companies have any reason not to share their paperwork?

For example carrier A gets a shipment from Broker A.
Carrier A uses factoring company A.
Broker B gets the paperwork from factoring company A.
Broker B now calls shipper with the cost in hand and can get the customer.
 

Freight Broker

Well-Known Member
30
That may happen.. who knows. I'm more concerned about factoring companies doing their jobs properly. Too often I find they're the tail wagging the dog. I might find a new carrier.. we agree to move a load.. and several hours later, "so sorry my factoring company won't approve you". So I ask why and they can't or don't want to give me an answer. So I offer to pay the carrier $25,000 on the load in advance if they can show that I've ever paid anyone late.. (including personal phone and utility bills going back to when I was 18 years old). For some reason nobody will take me up on my generous offer. Some years ago I had to sue a credit reporting agency and a factor to get some wrong info corrected.. my lucrative settlement aside... I'd rather not go that route.
 

MikeJr

Moderator
Staff member
30
Factoring Company A will have a duty to protect the confidential files (paperwork) from Carrier A. It'll be in the agreement between the companies I would expect.

Keep well,
Mike
 

youngtea

Active Member
10
Factoring Company A will have a duty to protect the confidential files (paperwork) from Carrier A. It'll be in the agreement between the companies I would expect.

Keep well,
Mike
I understand there is an agreement between Carrier A and Factoring company A, however there is no way Broker A is protected at all.

I have a friend that works at one of the large factoring companies and what stops him from telling me the shippers for all shipped products? I've thought about this and considered rejecting factoring companies unless I get this in writing.
 

Freight Broker

Well-Known Member
30
Ask your friend and see what he says. If he hands you over the info then there may be a problem.. I've looked at not working with factoring companies too, but the trouble with that is that so many carriers opt to factor their receivables. 10 or 15 years ago most carriers did not factor... now I'd say at least 70% do.
 

theman

Well-Known Member
20
It's a really curious situation. Scout is really just involved in produce ... if they go outside of that, it's to find freight going to the produce areas.
 

MikeJr

Moderator
Staff member
30
I understand there is an agreement between Carrier A and Factoring company A, however there is no way Broker A is protected at all.

I have a friend that works at one of the large factoring companies and what stops him from telling me the shippers for all shipped products? I've thought about this and considered rejecting factoring companies unless I get this in writing.
Right,

What I'm saying is. it's not in Factor A's best interest to give Broker B any paperwork from Carrier A's transaction. First, I would make sure that there was a 'security of documentation' clause in our agreement if I was Carrier A, but also wouldn't compromising the business/income of my client (Carrier A) not be in my best interest as a Factor?

Mind you if business is compromised, it would strengthen the need for me... Ah, I see!

Keep well,
Mike
 

QueenD

Suspended Member
5
I agree with Gords statement in the shout out box -

I ues to deal with Grand Finance and they were very expencive and a lot of extra fees. Alex Damaschin was rude to my costumers and caused me alot of business.
I changed my name and moved to JD Factors and they are very profissional with my costumers. Please stay away from Alex Damaschin and Grand Finance.
The owners of this company are said to be criminals from New York.
 

htcollections

Suspended Member
10
True, but some carriers have no choice. Responsible factoring companies can be useful, but not when they have people like Alex involved. Grand Financing is out for themselves only with the highest failure rates i was told. They have hidden charges and do not ask for Independent Legal Advice. An unsophisticated person will not understand their contract at first. Alex is often rude to many people from customers to his own carrier clients. They don't care about contracts as they are in so much litigation it would amaze anyone. They can fire Alex, but they will simply replace him with another ass.
 

loaders

Site Supporter
30
Is factoring your invoices the only answer for a cash strapped, asset based carrier? Am I correct in assuming that in addition to having a secured, business line of credit with a chartered bank, there are some that also sell their receivables at a discount to factoring companies? Surely the financing costs of a line of credit would be more reasonable than a factor. Trying to operate profitably under the pressure of both line of credit and factor fees, would be extremely challenging. As freight broker said, there seems to be more and more carriers using factoring companies, and as a result, more factoring companies. I guess in the "old days" you either begged or borrowed the capital to get started and then pleaded with the bank to extend you some credit just to keep the wolf from the door and the wheels turning. Maybe there is a correlation between the expansion of the factoring industry and the number of new entrants into the trucking industry. Easier to obtain operating funds?
 

Freight Broker

Well-Known Member
30
Some carriers and brokers don't have two nickels to rub together. They get into business due to sheer grit and determination.. try starting a carrier with no money at all. Yet I know several who have done it albeit very few become successful.
 

htcollections

Suspended Member
10
FREIGHT BROKER. I know at least 8 carriers that dealt with Alex. He's not the smartest guy around from what i hear. But i guess the brothers are ok with his tactics. Im sure some one might do exactly what you are suggesting.
 
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