Invoice Factoring with Apex Factoring
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Apex Factoring Information:
- Apex Factoring Headquarters: Ft. Worth, TX
- IFA Member: Yes
- In Business Since: 1995
- Direct Lender: No
About Apex Factoring
Apex Factoring, also known as Apex Capital, is a freight factoring company based on Fort Worth, Texas. They assist small and medium sized trucking companies (including independent owner/operators) nationwide with cash flow problems stemming from unpaid invoices. Unlike most other factors, Apex only serves only the trucking industry. Apex has been providing financing solutions to truckers since 1995.
Invoice Factoring at Apex Factoring
Apex Factoring provides a capital advance for the invoices on freight you’ve already delivered. They do this by purchasing your freight bills at a discount to their face value. Apex then advances you funds to improve your net working capital.
Apex Factoring offers it’s trucking customers both recourse and non-recourse factoring options. Under recourse factoring, also known as discount invoice factoring, you must repay the factor for the invoice’s value whether your customer pays it or not.
Under non-recourse factoring, the factor bears the credit risk for your customer’s repayment. As you might expect, this costs a bit more than recourse factoring but it does provide peace of mind. It can be viewed as part of a risk management strategy.
Don’t forget, this only applies to their credit (ability to pay). This doesn’t apply to their willingness to pay, in cases of non-payment due to delivered goods that were damaged-you’re business is still on the hook for repayment to the factoring company.
The steps for accounts receivable factoring at Apex are 1- credit checks 2- Send freight invoices 3- Apex collects from customers. Apex encourages their business customers to perform credit checks on the account debtors. This way, truckers get an idea of who they want to carry loads for and who they should avoid.
Then you send out your invoices like you normally would. Apex will receive, proof of delivery (POD) or Bill of Lading (BOL), rate sheet and any other documents you send to your customer. Apex Factoring will scan the invoices into their system, so your business has 24/7 access to them through a free account management portal.
Apex will then advance you the money based on your invoice and the credit of your customer. Advance rates are typically 80%-90%. The funding can come via ACH, check, wire or loaded directly onto an Apex fleet card.
Finally, Apex performs the collection from your customers. They utilize a “soft collection” method, meaning they communicate with the customers in a professional, non-threating way. Case in point, a 2015 survey by Apex revealed that 87% of brokers and shippers (account debtors) were satisfied in the dealings with Apex Factoring. Through a large network of contacts, there’s a good chance that Apex knows your customers as well as you do (if not better).
A unique offering of Apex is their Apex Startup program for entrepreneurs who want to start their own trucking company. Many existing truckers are owner-operated and are able to make a nice living being their own boss. Apex helps with the startup process which includes registrations and licenses such as your DOT number and motor carrier operating authority (if hauling interstate). They can even handle all renewal filings and paperwork.
Apex Invoice Factoring Info:
- Funding Time: Same day or next day
- Contract Length: No long-term contracts, no termination fee
- Monthly minimum: No
- Dedicated Rep: Yes
- Factoring Fee: Flat 2% on invoices already billed
- Non Recourse Factoring: Yes
- Load board access
- Fuel cards
- Professional Collections
- Credit checks
Invoice Factoring Company Review: Apex Factoring
Like Fleet One, we were impressed with Apex’s use of technology to help their clients. They offer an impressive suite of products including a mobile app for factoring, a proprietary load board service called nextLOAD, and a fuel card providing discounts nationwide.
Further, it was nice to see that there were no long term contracts or monthly volume minimums under Apex’s factoring facility. When canceling a contract with Apex, they do require 60 days’ notice. After seeing the 2% flat fee, we assumed it must accompany a year contract-it didn’t.
Monthly minimums can kill a small trucking company. For example, if your truck is in the shop for an extended period of time, the fees incurred by not meeting the minimum volume requirement are punitive.
A Solid Reputation
Reviewing what customers were saying about their dealings with Apex Factoring uncovered generally positive comments. We found a couple unhappy customers, but not many. They were related to customer service issues and Apex responded to all complaints. Apex capital is rated A+ by the Better Business Bureau and accredited.
Should I be Factoring Receivables with Apex Factoring?
Considering they offer both recourse and non recourse factoring, no long-term contracts, fuel savings programs, a 2% flat factoring rate (for recourse) and no major complaints (especially considering a 20+ year operating history) we would be comfortable factoring receivables with Apex Factoring.
Their extensive knowledge and relationship with many freight forwarders allow them to offer a premium credit service. Just make sure you read and understand the full factoring agreement prior to signing.
Get a free quote and see how much you qualify for through factoring.
Other Invoice Factoring Companies like Apex Factoring:
- Fleet One Factoring
- Tab Bank
- Crestmark Bank
- National Bank of Arizona
- Green Bank
- Riviera Finance
- Independent Bank
- OTR Capital