The news about this case is coming out fast and furious, so keep a close eye on it. googletag.pubads().collapseEmptyDivs(); googletag.pubads().enableSingleRequest(); Get cash after load delivery Same-day funding via paperwork submission. Ideally, these things happen and you are then free to move onto a new factoring company without issue. 4 days ago 10 trucking companies that used their services were having issues. They answer questions and handle our business promptly in a professional and courteous manner. the courts order moves us much closer to addressing the needs of CoreFunds factoring customers., Medley is a listed attorney for members of the trade group, the International Factoring Association, to use. Before you become an O/O you should take business classes and have atleast 20k in the bank. The petition states that CoreFunds bank accounts (and thus entire business) have been wrongly shut down. }); Court-appointed receiver Timothy Hassenger is working on getting hundreds of truckers accounts receivable paid nearly three weeks after a legal feud between brothers regarding the assets of a family trust led to the abrupt shutdown and firing of all employees at CoreFund Capital, a Texas-based factoring company. gptAdSlots.push(gptSlot); There are some possible legal ramifications for the new factor as well. At this moment there is no way for a factoring company to arrange buyouts or releases until this is resolved. In CDL School Now Some people think that factoring services are similar to bank loans, but that could not be further from the truth. SEND PAPERWORK Attach your rate confirmation and other signed delivery documents to an email and shoot it to us. He will need 1) a copy of your CoreFund factoring agreement and 2) your original UCC1 filed by CoreFund against your assets. Itll take a couple of days to add your truck(s) to their insurance and get their decals, but once you have it, you can book your own loads under their authority and make a deal to share revenue. CV22-0851. (800) 405-5464 Corefund Capital Profile and History CoreFund Capital LLC, an invoice factoring company, provides business and cash flow solutions through full service invoice factoring. However, late Thursday, Parker County, Texas, District Judge Graham Quisenberry appointed a receiver on behalf of CoreFund, which may help truckers gain access to funds more quickly. On Aug. 4, the factoring company reopened for business. This section refers to defaulting on the contract. . If CoreFund does not reply to the demand within 20 days, you may try to proceed with this method. I have several carriers and other factors I am assisting with this, and Im sure other attorneys are too. Frost Bank did freeze CoreFunds operating account, and CoreFund believes TBK Bank will do the same. in a filed record, as applicable, may recover $500 in each case from a person that: (3) files a record that the person is not entitled to file under Section, (1) and whose failure is part of a pattern, or consistent with a practice, of noncompliance; or, may recover damages under subsection (b) and, in addition, $500 in each case from a person that, without reasonable cause, fails to comply with a request under Section. Midway through the week of July 18th, clients reported being unable to reach CoreFund Capital, a freight factoring company based in Weatherford, Texas. Trucking is a community-based industry chances are, you have a friend whod be willing to lease your truck(s) under their authority. WHILE THERE ARE ONLY A FEW BAD APPLES, THEY DO NOT SPEAK FOR THE REST OF THE MANY MORE HONEST AND REPUTABLE FACTORS IN THE INDUSTRY. Heres a great list of the top 50 logistics companies in North America. Now some of you may have noticed in your CoreFund contract. You can also reach out to new brokers you havent worked for in the past. googletag.cmd.push(function() { Everyone knows this is a tough business and we all need to stick together! In basic terms, UCC stands for Uniform Commercial Code. Each state has its own legal and financial laws, but for businesses that typically operate across state lines, a UCC is a common set of laws that multiple states agree and abide by. Prior to the judge appointing a receiver, Medley had a chance to speak at Wednesdays hearing regarding a civil lawsuit filed by CoreFund Capital, which seeks a restraining order and temporary injunction, as well as application for appointment of an attorney for trust beneficiaries against Frost Bank, TBK Bank, Chris Wakefield and Meir Shim Sacks. Now some of you may have noticed in your CoreFund contract Section 17.1.1(c) and (d). Update 7/28: Freightwaves just published a comprehensive update of the CoreFund situation. The parties involved argued over the appointment of a receiver and no ruling for a receiver was made. Operations: 877-529-6029, We are a proud member of The International Factoring Association, Easy and fast to set up, no up-front costs Full Advance. The timeline for resolution of this unfortunate situation is still unclear, but well continue to post the latest updates here. As with the previous question, if a factoring company does factor a load for you without a CoreFund release and new NOA then that factor may never get paid. Please watch out for the predatory factoring companies. 04/30/2022. Here are a few excerpts of this regulation that may be of use. }); googletag.cmd.push(function() { Section (c) states that an event of default occurs when any guarantor fails to perform their obligations to Purchaser. I spoke to a carrier yesterday out of New York that submitted three invoices to CoreFund last week and no one responded to her so shes stuck in limbo, Ashley Dellinger, vice president of sales and marketing of Utah-based Express Freight Finance, told FreightWaves. Factoring involves three parties, the buyer, the seller and the factor. When you sign up for the trial on our website and talk to a representative, make sure you mention that youre a former CoreFund client so they make sure you get the extended free trial. She is an award-winning journalist known for her investigative and business reporting. 5) No Online reviews, Your email address will not be published. 2 Years PERSONS ENTITLED TO FILE A RECORD. In a status hearing via videoconference on Wednesday with factoring companies, as well as attorneys and truckers, Medley said carriers just want to get back to work even if that means leaving CoreFund for another factoring company. . Employee Profiles 1. . It will take a little time for the receiver to get into the offices, get access to accounts, etc, but the hard part is over. The amount that remains is kept as a reserve by the factoring company and paid after the invoice is cleared by the trucking company's client. View contacts for CoreFund Capital to access new leads and connect with decision-makers. Spencer Fane LLP }); Hundreds of small-business truckers who use CoreFund Capital to factor their accounts receivable are struggling to stay afloat after the Weatherford, Texas-based company abruptly closed its doors 10 days ago and fired its entire staff over a legal spat between two brothers. Our commitment is to our clients by providing them with the cash flow solutions they need using a customized approach and a level of care and service they deserve. googletag.cmd.push(function() { Feel free to pass this information along as you see fit. Attorneys for CoreFund have indicated this morning they may file for voluntary bankruptcy or receivership as noted yesterday. Additionally we are saddened and sickened by how this is impacting our clients who we consider family and we are legally unable to do anything to help as they struggle to stay in business. Most likely the financing statement in your UCC does include this. (6) fails to comply with Section 9-616(b)(2). Keep in mind however that UCC Section 9-513 Termination Statement limits this ability if the financing statement on the UCC covers accounts and chattel paper. window.googletag = window.googletag || {cmd: []}; The information contained here is just our take on possible actions you can take if you are a client of CoreFund Capital. Currently we are all at the mercy of the court system, CoreFund attorneys, and CoreFunds owners. The initial credit line provided to the client on May 31 was increased from $12 million to $25 million on Nov. 2 to provide the necessary availability to support ongoing . We will continue to post information here as the situation changes. The petition states that this is because of a spat between the parties who control CoreFunds holding company and trust (Wakefield and Sacks). Per a recent thread in the International Factoring Association (IFA) forum from Jason Medley on the process of filing a termination demand letter: A 20-day notice under UCC 9-513(c) can be sent to CoreFund. Staffing Agencies. Everyone trying to call their account representatives or the general phone number were left getting only voicemails or mailbox full notifications. Edit Details . However, a debtor or secondary obligor whose deficiency is eliminated or reduced under Section 9-626 may not otherwise recover under subsection (b) for noncompliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance. which never claimed an interest in the collateral or obligations that are the subject of a request under that section has a reasonable excuse for failure to comply with the request within the meaning of this subsection. Tony Ginevra, director of operations for Florida-based John J. Jerue Truck Broker, works with a network of 50,000 trucking companies, including 140 carriers in his database that factor their receivables through CoreFund Capital. CoreFund is described as simple, transparent, and reliable, customers say they always deliver funds quickly and give services at a class-leading pace. Please know that every employee of CoreFund wishes more than anything we could have continued funding our clients and now that we could release them and end this awful mess but even if we terminated a UCC or sent a release letter it would not be enforceable given we are no longer employees of CoreFund. While we dont know a timeframe for this petition, this action would allow the Texas courts to revoke all Notice of Assignments for CoreFund and all of their carrier UCCs to be terminated. Its unclear why Jacob Sacks created the new trust. CoreFund was founded by industry veterans with the sole mission of making factoring easier and more. Send me an email. IMPORTANT: WE ARE RECEIVING MORE AND MORE CALLS FROM TRUCKERS STATING THEY ARE RECEIVING CALLS FROM FACTORING COMPANIES THAT CLAIM THEY HAVE A SPECIAL AGREEMENT WITH THE COREFUND RECEIVER TO GET YOU RELEASED FASTER THESE ARE SHADY TACTICS THAT ARE NOT TRUE. 4 Years googletag.cmd.push(function() { With a commitment to clients and a customized approach, CoreFund combines their cash flow solutions with a superior level of care and service. A. Q. I truly can't be more thankful to this company and it's staff for doing everything they say they will do. UCC Filings are a standard part of almost all factoring agreements. Attorney Jason Medley will be filing an emergency intervention and involuntary receivership. Our staff is hurting and struggling with this as we were completely blindsided, Waller wrote. to allow CoreFund to continue daily operations without fear accounts being frozen or Wakefield and Sacks closing the business. As we said from the beginning, we stand with the great staff that made CoreFund the success it was. This section refers to defaulting on the contract. -Todd Waller. googletag.pubads().enableSingleRequest(); Founded in 2015, CoreFund Capital (subsidiary of GMA Factor, LLC) is a freight invoice factoring company headquartered in Texas. (b) [Agreement does not prevent transfer.]. The worst of the CoreFund fiasco is over: yesterday (July 28, 2022), the judge in the court case about the factoring company appointed a trustee on behalf of CoreFund Capital. Whether you do business with us at LoadX Factoring in the future or not, we are here to help as much as we can. Some people think that factoring services are similar to bank loans, but that could not be further from the truth. googletag.cmd.push(function() { In addition to any damages recoverable under subsection (b), the. Required fields are marked *. The petition is asking the Parker County, Texas District Court (Case No. Additionally, we are saddened and sickened by how this is impacting our clients who we consider family and we are legally unable to do anything to help as they struggle to stay in business.. AVOID THESE PREDATORY FACTORING COMPANIES. CoreFund Capital is a great factoring company, their reviews online are a testament to that. Apply Now! Our Take: This section dictates that the account debtor (the client or a broker) can request from the assignee (CoreFund) reasonable proof that the assignment has been made (a Notice of Assignment). (a) [Judicial orders concerning noncompliance.]. 9-406. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); The ones who work daily at CoreFund are great people and we hope a resolution is found for their sake. Carriers are reporting their doors are currently locked, and no one is answering emails or phone calls. Buckalew was hired to work with CoreFunds communications team and the receiver to address carriers concerns. NO! Paperwork is submitted easily through email. 3) No TheTruckersReport.com comments If youre looking for a new factoring service and youre coming from CoreFund, give us a call +1 (410) 204 2084. There was little to no prior warning other than a comment posted to an earlier Facebook thread from the company on Thursday, July 21st, at 8:30 PM. After several communications with their team, we are allowing the receivers staff and the CoreFund staff (many of whom we are told returned to work under the pending receivership) to have time to access the computer systems and review the list of our carriers, which number slightly above 100 at the moment.. This is very different from bank loans which influence the businesses debt to equity ratio, credit score, etc. Werner, Erin (c) [Persons entitled to recover damages; statutory damages in consumer-goods transaction.]. Factoring services, unlike bank loans, focus on the value of receivables. Lesson learned! They deliver factoring services as promised and provide exemplary customer service. It not only details their actions, but also provides their home address., CoreFund Capital Facebook post, 7/23/2022 at 10:00pm cst. Section (d) states that if the Purchaser deems itself insecure with respect to the prospect of repayment or performance of its obligations then this will constitute an event of default. According to court documents, Meir Shim Sacks founded CoreFund Capital in 2014. You most often will hear of UCCs if one of your customers refuses payments to your factor or, in the case of CoreFunds closing, if the factor does not make good on their payments to their carriers. A debtor or consumer obligor may recover damages under subsection (b) and, in addition, $500 in each case from a person that, without reasonable cause, fails to comply with a request under Section 9-210. If you provide me with your company name and contact information, we will be getting terminations of the factoring agreement, UCC3 Lien Terminations, Revocations of the Notice of Assignment to your account debtors/customers, and confirmation of any amount owed to CoreFund or owed to you by CoreFund. googletag.cmd.push(function() { We at LoadX Factoring are working hard to help as many CoreFund clients as possible. We wont look for reasons to come back at you for money like everyone else does. As of publication, FreightWaves calls to Jacob Sacks, Shim Sacks and Chris Wakefield, listed as the chief of staff of CoreFund, also had not been returned. As of right now, NO FACTORING COMPANY has the ability to release you from your NOA or UCC. Menu icon A vertical stack of three evenly . 5 stars all day long Date of experience: November 08, 2019 Share SC Sherwyn Cox 1 review US Aug 24, 2019 A. NOT SO FRIENDLY FACTOR TRIUMPH BUSINESS CAPITAL. }); Its unclear why Jacob Sacks created the new trust. Our Take: Even if your contract with CoreFund states that the transfer of rights is prohibited (a new factoring company takes over in case of default), this section does not allow such prevention. You can view the order here: https://hubs.ly/Q01hQDNy0. }); googletag.cmd.push(function() { Our staff is hurting and struggling with this as we were completely blindsided. | CoreFund Capital LLC is a premier provider of financial services, specializing in business financing through invoice factoring services. window.googletag = window.googletag || {cmd: []}; A person may file an amendment other than an amendment that adds collateral covered by a financing statement or an amendment that adds a debtor to a financing statement only if: (1) the secured party of record authorizes the filing; or. As part of the original trust, Shim Sacks granted special power of appointment to his brother, Yaakov "Jacob" Sacks. googletag.pubads().enableSingleRequest(); Were actively working with a number of carriers affected by this situation to identify solutions for their unique situation. Great article for financing spectators such as us along side informative work around to make sure we have the back bone strong enough to handle all our clients through this. Major Update: Thursday 7/28/2022, 2pm cst. According to court filings, Jacob Sacks exercised this special power of appointment he holds under the original trust and transferred the trusts assets, including the holding company that owns CoreFund, to a new trust he created, the Sacks Family Grandchildrens Trust, on July 12. CoreFund is happy to be able to provide them the working capital needed to help expand and grow their business, Bonnie Castillo, president of CoreFund Capital, said. Unless the assignee complies, the account debtor may discharge its obligation by paying the assignor, even if the account debtor has received a notification under subsection (a). }); He said the CoreFund situation is rare in the factoring world. googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); ALIENABILITY OF DEBTORS RIGHTS. Possibly. Melissa Harris joined CoreFund Capital as vice president. CoreFund Capital: How Express Freight Finance is Helping July 26, 2022 Is Freight Factoring Worth it? If this is a new broker for you that does not have a CoreFund NOA then it is likely you can invoice directly and get paid. Oil and Gas Services. As a business owner, moving freight should be your top priority - but managing financials can pull focus away from your trucks. According to court filings, Jacob Sacks exercised this special power of appointment he holds under the original trust and transferred the trusts assets, including the holding company that owns CoreFund, to a new trust he created, the Sacks Family Grandchildrens Trust, on July 12. window.googletag = window.googletag || {cmd: []}; Can any factoring company get me a CoreFund release faster? CoreFund Capital, a factoring company based in Weatherford, Texas, went dark the week of July 18, 2022 with no warning or communication to clients or the public. She is an award-winning journalist known for her investigative and business reporting. , the secured party may claim a security interest only as shown in the list or statement included in the request as against a person that is reasonably misled by the failure. This will expedite helping you move on to a new factor, without waiving the right to get your Reserves released (that will be step 2). Might learn how to keep it from happening going forward and seeing how to maybe get your money. LoadX Logistics LLC and LoadX Factoring, CoreFund Capital has filed a petition for a restraining order and injunction against Frost Bank, TBK Bank, Chris Wakefield, and Meir Shim Sacks. We just need the folks behind the wheel to get released so they can haul loads and get paid, Medley told FreightWaves. The petition states that this is because of a , between the parties who control CoreFunds holding company and trust (Wakefield and Sacks). altLine The Southern Bank Company - Low fees, accounts receivable-based financing. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); Currently, CoreFund has a UCC Filing for all of its customers. If you or someone you know needs support, please dont hesitate to reach out. . CoreFund Capital facilitated an increase to the credit facility for a global logistics and freight forwarding company. And there are tons of great factoring companies that are ready, willing and able to pick up the pieces. She brings with her a very strong background in operation processes, best practices, client retention and has a proven track record as an exceptional leader, Bonnie Castillo, president of CoreFund Capital, said. May 7. All things considered, you can argue CoreFund is in default and the contract is no longer valid. The hard part is over and the judge appointed a receiver in the CoreFund case. We have been with CoreFund Capital LLC, since September 2021; CoreFund Capital has the industry expertise, stability and outstanding customer service . In an email to FreightWaves, Buckalew said CoreFund is solvent and plans to stay open after the truckers get paid. I give my express consent authorizing TruckersReport and its, $10-$20 per advance, available 7 days per week, Free Credit Checks on potential Customers, Quick and Easy Qualifying online application. He warned factoring companies to be cautious if they decided to fund truckers because of the UCC liens and the notice of assignments that are still in place with CoreFund. As of Monday night, July 25th, the company confirmed via Facebook that, unfortunately, the entire CoreFund team was terminated. This clients business has performed impressively over the past months with a solid base of customers. Effective immediately, Express Freight Finance will offer a 60-day contract with a 30-day release clause for those carriers impacted by this situation with no set-up, due diligence, or early termination fees. CoreFund Capital specializes in business financing through invoice factoring. Thank you for your message. In the meantime, we are here to help.. googletag.enableServices(); CoreFund Capital, a receivables finance company, provides working capital for transportation, logistics, oilfield and intermodal businesses through invoice factoring. The receiver stated the goal is to have this done by the end of this week, Friday 8/5/22. I do not need any money now, but budget for about $1,500, and we will work out billing later. CoreFund Capital | 287 followers on LinkedIn. Charter Capital works with many oil and gas servicing companies who have gained a competitive advantage with invoice factoring. (g) [Limitation of security interest: noncompliance with Section 9-210.]. If you send them to CoreFund they will be placed in an already long queue. Jason Medley, partner with law firm Spencer Fane in its Houston office, is representing more than 100 trucking companies that were affected by the CoreFund shutdown. June 3, 2022 Contact Information. CoreFund Capital provides its services on a contractual basis. googletag.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); Please contact an attorney to help you in the matter if you are affected by this CoreFund shutdown. Disclaimer: The following information does not constitute legal advice. CoreFund is a wholly owned subsidiary of GMA Fund LLC, the holding company for the Shim Sacks Family Legacy Trust, which he created in October 2014. Can they? In the Freightwaves article, Jason Medley, partner at Spencer Fane in Houston, noted, This means that the receiver is able to act on behalf of CoreFund to release the UCC1s and notices of assignment and make payout arrangements. Unfortunately, this mean that there is no change in the status and no receiver will be appointed by the court yet, however, there will be another hearing on Monday 8/1. If you do not have this, Jason can pull it for you. Get on the road, stay on the road, and grow. CoreFund Capital trying to run business as normal for carriers during receivership however they have been met with numerous road blocks provided by numerous not so friendly factors, however the largest roadblock at this moment is Triumph Business Capital also known as TBK Bank holding well over 2 million dollars, for funding from CoreFund Capital. We are also working on getting further guidance from an attorney who specializes in this industry. CONSHOHOCKEN, Pa., Jan. 27, 2021 /PRNewswire/ -- DrayNow, the first real-time intermodal marketplace, and CoreFund Capital, a premier full-service. 1 Year On Behalf of Jason M. Medley CoreFund Update CoreFund is described as simple, transparent, and reliable. DISCHARGE OF ACCOUNT DEBTOR; NOTIFICATION OF ASSIGNMENT; IDENTIFICATION AND PROOF OF ASSIGNMENT; RESTRICTIONS ON ASSIGNMENT OF ACCOUNTS, CHATTEL PAPER, PAYMENT INTANGIBLES, AND PROMISSORY NOTES INEFFECTIVE. }); She said Hassenger plans to release the carriers that want to find a new factoring company but that many are choosing to stay with CoreFund.. Corefund Capital screwed their customers. By providing your email, you indicate you have read and understood our A good factoring partner will have tools and expertise that help you with everything you need, not just same-day cash. Cash Flow, Invoice Factoring, Financial Services, Accounting, Customer Service: Founded: 2015: Our Take: Simply put, if the secured party (CoreFund) is not following the UCC regulations you have the right to file a lawsuit against them for damages incurred due to their failure to comply. First, none of the information below constitutes legal advice, and you should consult an attorney. There is no doubt that CoreFund Capital is an outstanding factoring company. Join Our Community. jmedley@spencerfane.com. window.googletag = window.googletag || {cmd: []}; These truckers need to leave CoreFund now., In the meantime, Medley said his firm was working to contact the receiver to expedite the process as much as possible.. window.googletag = window.googletag || {cmd: []}; Do I go ahead and send to CoreFund, or wait? Contact information for Attorney Jason Medley: Jason M. Medley CoreFund, Inc. offers highly personalized service and help cut through the red tape that is often involved in securing business loans from banks and other lending institutions. This is normal for factoring companies and acts as a form of protection for the factoring company in case of client or debtor default. A hearing is schedule for tomorrow, Wednesday 7/27/22. CoreFund Capital's services include: Non-recourse factoring programs Same-day payments Full advance programs googletag.pubads().enableSingleRequest(); googletag.enableServices(); As of late Thursday night, Parker County, Texas, District Judge Graham Quisenberry appointed a receiver on behalf of CoreFund.