No Release Letter

Nice thought Loaders, This discussion could go forever. But what must be considered: the economy of the transportation industry demonstrated that Factor is essential to it as it allows the business short of cash to operate and expand. Perhaps, without the Factoring companies a lot of small businesses-members to this forum would not be, as the industry to be dominated by few larger players backed up by finances and there would not be a space for competitive market of a small business. Nowadays, small business sector in transportation industry is quite significant.

The other words, we just need to learn how to continue to deal together, so far we are doing just fine with few minor hiccups here in there which is part of DOING THE BUSINESS.
 
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The take away from this discussion that applies to everyone, is too be extra vigilant when dealing with a carrier who uses the services of a factor. Especially a carrier who changes factoring companies on a regular basis. In addition, when a carrier requests “quick pay”, extra diligence should be exercised. This is not a knock against factors or the carriers that use them, it is just a prudent business practice.
 
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You're in the clear on this as you have a bonding agreement with the factoring company with respect to any payments involving this carrier. Unless and until the factoring company releases you from said agreement you are required to make payment to them. The carrier may fume about it, but they cannot unilaterally change the terms of payment.
 
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I fully agree. However in my particular case, the carrier doesn't quite see it that way and is filing suit in Small Claims Court against the shipper and the receiver.
 
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