EL PASO, TX, MAY 12, 2013 Check Freight Broker, LLC (“CFB”), owner of the world’s largest 100% free transportation load board and freight payment database, announced today it is providing select factoring companies free access to its credit files. Effective June 1, 2013, IFA-member factoring companies may access CFB’s transportation payment database free of charge. Until that date, enrollment is limited to motor carriers and freight brokers possessing active operating authorities. Non-IFA member factoring companies are ineligible.
CFB is a wholly-owned subsidiary of Interstate Capital, one of North America’s leading transportation factoring companies. CFB operates the world’s largest free freight matching site, CheckFreightBroker.com. In addition to having posted nearly 25 million truckloads of freight, CFB provides registered site visitors access to its FREE transportation credit report database. Tony Furman, CEO of Check Freight Broker, describes what makes CFB’s freight broker credit reports unique, “CFB’s credit reports display only our own first-hand collection experience encompassing millions of transactions with tens of thousands of freight brokers spanning over 20 years. Unlike other transportation credit services that encourage the contribution of data from third parties, CFB does not accept any third-party data. CFB Credit reports are updated in real time as Interstate Capital posts freight broker payments and uploads them to the site”. Furman adds, “By providing free access to our credit database, we are hoping to reduce the cost of doing business for small factoring companies on a budget.”
CFB believes it will save most factoring companies thousands of dollars per year by providing them access to its free freight broker credit reports. IFA-member factoring companies may register at www.checkfreightbroker.com on June 1st, 2013.
For additional pre-registration information:
Tony Furman, CEO
Check Freight Broker, LLC
MAY 6, 2013 EL PASO, TX Technology start-up, BidPay, Inc. announces the development of BidPay®, the proprietary cloud-based system that strengthens the supplier-buyer relationship by delivering spot liquidity to cash-constrained suppliers of America’s leading companies. BidPay® Beta Version 1.0, is expected to be available to select clients by late 2014.
BidPay® electronically connects buyers with their suppliers whenever buyers have supplier payments in the “approved and authorized” status that are not yet due for payment. BidPay® ‘s clients upload their payables to its site, where suppliers are invited to bid on-line for the right to obtain immediate payment. BidPay® will market to U.S. based companies with annual sales between $1 billion and $5 billion (“buyers”).
BidPay® CEO, and inventor of the BidPay® technology, Tony Furman, has over 30 years of experience in the banking and supply chain finance. Furman is co-founder and President of the Interstate Capital Group of Companies of which BidPay® is a subsidiary.
Furman explains, “Cash-constrained suppliers’ alternatives to BidPay® are limited. They may wait to collect payments from large buyers—that are stretching payment terms in increasing numbers, or they may arrange to finance their receivables with external funding sources. The challenge with external funding is that it is a scarce resource that’s not available to every supplier–especially cash-constrained buyers. Every supplier, irrespective of their size or financial condition, qualifies to obtain prompt payment from any BidPay® client.”
BidPay® offers an alternative to the traditional supply-chain financing model where buyers lean heavily on suppliers’ willingness and ability to provide trade credit. In the present supply chain finance model, suppliers borrow from external funding sources to finance receivables arising from their extension of trade credit to buyers. For suppliers of buyers that implement BidPay® technology, the traditional financing model is reversed. “The old procurement model was developed before the advent of modern technology”, explains Furman. Buyers that implement the BidPay® solution negotiate pricing and credit terms during the procurement phase without any discussion or negotiation of prompt-payment discounts. Instead, BidPay® solicits discount bids from cash-constrained suppliers when their need for cash is greatest–after the delivery of goods or services.
At the core of BidPay®’s technology is a patent-pending, dynamic decision-making algorithm that automates the collection, analysis, and acceptance/rejection of discount bids. BidPay® technology maximizes discounts by making it impossible for suppliers to predict auction outcomes in advance, and thereby preventing suppliers from gaming the system by automatically building in the cost of discounting into their pricing of their goods and services.
The auctioning of their payables through the BidPay® process provides the corporate Treasurer and CFO an ROI that far exceeds (i) the discounts the buyer might otherwise earn through the traditional model of offering across-the-board prompt payment discounts; (ii) the opportunity cost of holding excess liquidity on the buyer’s balance sheet; and iii) alternative short-term investment opportunities of like maturity.
Assume a BidPay® client, a buyer that pays its suppliers on terms of “Net 60 days”, owes a given supplier $10,000 on an invoice that’s been approved for payment, but is not due to be paid for six more weeks. The supplier is invited to place a bid on the BidPay® portal where it may decide it’s worth discounting its invoice $200.00, for example, in exchange for the certainty of obtaining immediate payment, and not having to wait six more weeks. The supplier simply bids a 2% discount rate, meaning that it is willing to accept $9,800 immediately rather than waiting six more weeks to obtain the full $10,000.
Auctions will involve hundreds or thousands of cash-constrained suppliers bidding on their own payments due from a given buyer. If it approves a bid, BidPay® notifies the buyer and the supplier when the auction closes. At the close of auction, the buyer promptly disburses payment to the suppliers that submitted accepted bids, less the agreed discount(s). When the technology becomes available on a limited scale in 2014, Furman believes CFOs and Treasurers of leading U.S. companies will be eager to provide BidPay® as an exclusive supplier benefit and lucrative investment tool. The BidPay® solution provides buyers’ with superior negotiating leverage and improves buyers’ gross profit margins while maximizing discount income and buyers’ ROI.
The Interstate Capital Group of Companies is a leading marketer of accounts receivable and freight bill factoring, fuel cards, freight matching, credit reporting services, property broker bonds, fuel advances, tractor/trailer financing, freight brokerage and accounts payable auction management services. Founded in 1993, Interstate Capital has provided $ billions of funding for over 5,000 credit-constrained businesses in the U.S., Canada, and Mexico.
Tony Furman, CEO
An Interstate Capital Company