Sg Capital Burlington or Vittoria?

Why don't you call the phone number attached to the NOA and get to the bottom of it. Tell them that there is no business named SG Capital INC and that you'd like a copy of the Master Business License showing SG Capital Inc.

You can also ask for proof of assignment under the PPSA act.

A notice of assignment is governed by Section 40(2) of the PPSA, which states that an account debtor (i.e., the Customer) may pay the assignor (i.e., the Client) until the Customer receives notice, reasonably identifying the relevant rights, that the accounts receivable have been assigned. If requested by the Customer, the Factor is required, within a reasonable period of time, to furnish proof of the assignment and, if the Factor fails to do so, the Customer may pay the Client.
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Of course, you can always just write back saying that you are denying the NOA and will pay the carrier directly. We do not pay factoring companies and we have had no issues with it.
I would also tell the carrier that you do not work with this Factoring Company and will no longer give them loads.
 
Thank you Jim for your searches. My lawyer agrees that the name SG Capital Inc is being used illegally as it is not registered. He also says there is an SG Capital, however that is not Scotlynn. The people that legally own it are in Burlington, definitely some sort of scam going on here. We are only going to pay trucking companies directly in regards to them.
 
I think you'd have to get someone like your lawyer to pull a full business registration report to get the valid business address. Like I said, SG Capital (without the INC) was registered the same day as Scottlynn Group Capital Inc. It highly likely that someone made the mistake and added the INC. when they should not have or when they registered the name the person forgot to add it.
Either way, a NOA should have some sort of entry into the PPSA which can also be searchable through the same process.


SCOTLYNN GROUP CAPITAL INC. is registered as
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My lawyer did pull it, and Scotlynn Group Capital shows 2021, not 2024 (the same day) where do you see that date Jim? Also the SG Capital underneath, if you look at the number it matches with the SG Capital in Burlington, not in Vittoria which is Scotlynn. It appears the Scotlynn one is running the scam, not the guy in Burlington.
 

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B-Rad said:
My lawyer did pull it, and Scotlynn Group Capital shows 2021, not 2024 (the same day) where do you see that date Jim? Also the SG Capital underneath, if you look at the number it matches with the SG Capital in Burlington, not in Vittoria which is Scotlynn. It appears the Scotlynn one is running the scam, not the guy in Burlington.
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I see your information and I don't really know what to say or how it works exactly. The data from your system shows the incorporation date of Feb 10, 2021 but the data I pulled just shows 'Date' which may mean something different - like a last update date. Remember, one is a business name search, the other is a corporate search. They may turn up different data points. In fact, the business name search results may be pointing to a wholly different corporation. Only a CORPORATE PROFILE REPORT will give you that information. Your laywer should be able to get that as well.
Either way, this is something for someone with more corporate law/accounting experience if you really need to get to the bottom of it. I just know enough to be dangerous and then send it to my lawyer if it needs further investigation.
Just be careful, the NOA is not something to just ignore.
 
Thanks Jim.
We are going to pay the carrier directly as our attorney did the corporate searches. The NOA fails as the corporation doesn't even exist.
Pretty disappointing for such a large corporation. Makes me wonder how they grew. Hopefully it was based on honesty and not these types of scams.
 
We all believed that. I received NOA's for multiple transport companies. It's a huge scam apparently to mislead us. SG Capital Inc. does not exist despite them telling us all that they did exist. It's a fake corporation!
 
What is the status of SG Capital and Scotlynn as seem there could be a conflict if broker/ Carrier is also factoring?
Is this allowed? Please educate me as needing new factoring company but don't want to get into a mess
 
Well....legally... (I have not pulled but business profiles so none of this is confirmed but makes sense.)
SG Capital (without the INC) is likely the registered business name for Scottlyn Group Capital Inc. which does the capital and factoring.
SCOTLYNN COMMODITIES INC is the broker arm and the transportation/trucking in Vittoria. (MC-238912 / MC-710394).
SCOTLYNN TRANSPORT LLC is the transportation/trucking based in Florida. (MC-1579720 / MC-820187)
SCOTLYNN USA DIVISION INC is another brokerage division based in Florida. (MC-710411)

These are all separate legal entities and legal businesses. The fact that the name is similar is what is causing the confusion and concern. Is it a conflict? Well, not legally. The conflict would start in the contract that you have with them and what they do with your data. The question is whether you want to risk that your information is passed along to be disseminated by someone else who can use it. If SG Capital was called ABC Capital you'd have no idea of questionable relationship and have never questioned it. How do you know if your previous factor wasn't selling your data? If they were, how would you prove it.

Moving to a rant in a different direction...
In these days, and especially with AI, data is king. Factoring is one way to get data. From this data the factor can get who is shipping, who is receiving, who pays the bills, who is in financial trouble and how much is being paid. If they sell that data, YOU are the one that loses the customer. The quicker people in our industry smarten up and get rid of these data leaks the better the whole industry will be. I don't understand why brokers pay factoring companies and risk that data in someone else's hands. Why do carriers choose to have 3% taken right off the top line - there is not enough margin in trucking for that.
 
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Jim L said:
Well....legally... (I have not pulled but business profiles so none of this is confirmed but makes sense.)
SG Capital (without the INC) is likely the registered business name for Scottlyn Group Capital Inc. which does the capital and factoring.
SCOTLYNN COMMODITIES INC is the broker arm and the transportation/trucking in Vittoria. (MC-238912 / MC-710394).
SCOTLYNN TRANSPORT LLC is the transportation/trucking based in Florida. (MC-1579720 / MC-820187)
SCOTLYNN USA DIVISION INC is another brokerage division based in Florida. (MC-710411)

These are all separate legal entities and legal businesses. The fact that the name is similar is what is causing the confusion and concern. Is it a conflict? Well, not legally. The conflict would start in the contract that you have with them and what they do with your data. The question is whether you want to risk that your information is passed along to be disseminated by someone else who can use it. If SG Capital was called ABC Capital you'd have no idea of questionable relationship and have never questioned it. How do you know if your previous factor wasn't selling your data? If they were, how would you prove it.

Moving to a rant in a different direction...
In these days, and especially with AI, data is king. Factoring is one way to get data. From this data the factor can get who is shipping, who is receiving, who pays the bills, who is in financial trouble and how much is being paid. If they sell that data, YOU are the one that loses the customer. The quicker people in our industry smarten up and get rid of these data leaks the better the whole industry will be. I don't understand why brokers pay factoring companies and risk that data in someone else's hands. Why do carriers choose to have 3% taken right off the top line - there is not enough margin in trucking for that.
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My question Jim is: Can we legally say no to a factoring company which has bought the invoices?
 
BPOVFB said:
You can
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genuinely curious, how does this work?

If I sell my receivables, legally, to a bank/PE/Factoring company, you can just say no I don't want to pay that specific person? That doesn't sound right

Jim L said:
Well....legally... (I have not pulled but business profiles so none of this is confirmed but makes sense.)
SG Capital (without the INC) is likely the registered business name for Scottlyn Group Capital Inc. which does the capital and factoring.
SCOTLYNN COMMODITIES INC is the broker arm and the transportation/trucking in Vittoria. (MC-238912 / MC-710394).
SCOTLYNN TRANSPORT LLC is the transportation/trucking based in Florida. (MC-1579720 / MC-820187)
SCOTLYNN USA DIVISION INC is another brokerage division based in Florida. (MC-710411)

These are all separate legal entities and legal businesses. The fact that the name is similar is what is causing the confusion and concern. Is it a conflict? Well, not legally. The conflict would start in the contract that you have with them and what they do with your data. The question is whether you want to risk that your information is passed along to be disseminated by someone else who can use it. If SG Capital was called ABC Capital you'd have no idea of questionable relationship and have never questioned it. How do you know if your previous factor wasn't selling your data? If they were, how would you prove it.

Moving to a rant in a different direction...
In these days, and especially with AI, data is king. Factoring is one way to get data. From this data the factor can get who is shipping, who is receiving, who pays the bills, who is in financial trouble and how much is being paid. If they sell that data, YOU are the one that loses the customer. The quicker people in our industry smarten up and get rid of these data leaks the better the whole industry will be. I don't understand why brokers pay factoring companies and risk that data in someone else's hands. Why do carriers choose to have 3% taken right off the top line - there is not enough margin in trucking for that.
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Also, I have no idea why a carrier chooses to factor, in the US, its rampant.

We can offer quickpay 2% paid within 48 hrs. Which is better than most factoring companies offer and people routinely turn us down and stick with the factoring company. We are actively trying to avoid paying factoring companies right now, but it's a losing battle.
 
@Fr8Guru " we don't pay factoring companies, we pay the carrier direct" thanks. Easy as that. Then pay the carrier. AS @Rob said, we will leave it Jim :D
 
I am not a lawyer, however it has always been my understanding that once a debtor receives a properly completed Notice of Assignment, the debtor is obligated to pay the new owner of the debt, in this case the factoring company. If payment is made to any other party, including the original debtor, the Notice of Assignment remains in effect. Now, having said that, if you do refuse to pay the factor, or any other supplier for whatever reason you choose, the onus then rests with them to decide what level of legal action they want to take against you. If these proceedings ended up in court, the factor would be in a favourable position if the NOA was complete and properly executed. As others have said, we too offer a quick pay program and it amazes me why more carriers, especially smaller operations, don’t take advantage of it.
 
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loaders said:
I am not a lawyer, however it has always been my understanding that once a debtor receives a properly completed Notice of Assignment, the debtor is obligated to pay the new owner of the debt, in this case the factoring company. If payment is made to any other party, including the original debtor, the Notice of Assignment remains in effect. Now, having said that, if your do refuse to pay the factor, or any other supplier for whatever reason you choose, the onus then rests with them to decide what level of legal action they want to take against you. If these proceedings ended up in court, the factor would be in a favourable position if the NOA was complete and properly executed. As others have said, we too offer a quick pay program and it amazes me why more carriers, especially smaller operations, don’t take advantage of it.
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This is my understanding of how it works as well.
 
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