Having trucks and crews on the road for days at a time, especially if they’re called to another state, is incredibly expensive. As a result, it’s not unusual for storm restoration companies to return home having spent all their working capital. They then face an uncertain road ahead since the utility likely won’t pay for 90 to 120 days.
Apex Capital Corp offers freight factoring primarily to trucking companies. But some storm restoration company owners are starting to wonder these days if Apex might be able to help them. Can they? Let’s find out!
What is Apex Capital and What do They Offer?
Unlike a lot of advance funding companies that have sprung up online in the past few years, Apex Capital Corp has been around since 1995. Today, they’re a full service freight factoring company that provides same day or next day factoring of invoices via a variety of payment vectors including wire transfer, ACH and yes, check.
How Does Apex Capital Work?
Apex Capital works by providing advance funding on invoices in order to help companies normalize cash flow. Whether you’re a trucking company or a storm restoration company, the principle is the same. The factoring company purchases your invoice and provides cash so you can meet your day-to-day expenses and be ready for the next challenge.
If you think “freight factoring” sounds a lot like “invoice factoring,” you’re right. Essentially that’s exactly what it is. The only difference is in the type of work performed to generate the invoices involved.
Apex not only purchases your invoices, they also collect from the company holding the invoice. In the case of a storm restoration company, that would be the utility. As is always the case with invoice factoring, having the factoring company insert itself in the billing/payment process is a mixed blessing.
Sure, it’s good to get the cash you need. But the utility might see this move as a sign that your company is in trouble. And they may not call you the next time they need help.
Apex Capital Requirements
The process of working with Apex Capital begins by providing them your DOT/MC number and then answering a series of questions regarding your company and the invoices you would like Apex to factor.
There are no requirements that you must have been in business for X number of years or have Y number of employees. The main things they’re interested in are the invoices you want to factor as well as your personal and company credit score.
Apex offers either flat or tiered factoring rates:
- With flat factoring rates, the fee percentage is the same regardless of whether the invoice is paid by the customer quickly or slowly.
- With tiered factoring, the fee you pay will depend on how long it takes the customer to pay off on the invoice. The faster they pay it off, the less it will cost you in Apex fees.
In addition, Apex doesn’t ask you to sign any long-term contracts, there’s no minimum number of invoices you need to factor and there are no termination fees.
Now, while that sounds good, keep in mind they’ll only reluctantly provide invoice factoring for storm restoration companies. Still, that shouldn’t be such devastating news because really, invoice factoring is at best a mixed bag for companies.
Apex Capital Pros and Cons
If you’re a small to mid-sized trucking company, it will be a lot easier for you to determine the pros and cons of Apex Capital. After all, your trucking company is what they’re set up to serve. If you are a storm restoration company, on the other hand, those pros and cons will be harder to discern. But we’ll give it a whirl.
Apex Capital Pros
- One of the more experienced invoice factoring companies out there.
- They offer same-day and next-day funding of your invoices.
- You don’t have to sign a long-term contract and there are no termination fees.
Apex Capital Cons
- Apex doesn’t specialize in invoice factoring for storm restoration companies.
- Their fees can get quite exorbitant if they deem you a credit risk.
- They purchase your invoice and then collect directly from the utility.
- That means the utility could deem you unreliable.
Apex is, at best, an awkward fit for storm restoration companies looking for a way to smooth out cash flow problems. At worst, this type of service could wind up setting you back further than if you did nothing.
A better idea would be to use Payost invoice financing instead. We provide the capital you need without a credit check, without notifying the utility, without penalizing you if the utility doesn’t pay early, and without leaving a negative mark on your company’s reputation.
Apex Capital Reviews
Reviews of Apex Capital aren’t hard to find. The thing is that the overwhelming majority are written by trucking company owners.
And while, to a certain degree, invoice factoring is invoice factoring–the nature of the trucking business is quite a bit more predictable than the nature of storm restoration work. So cash flow problems in trucking tend to be less acute and more simply a matter of bad bookkeeping.
Apex Capital vs. Payost
Apex Capital is well-respected in the trucking industry. But storm restoration companies hoping to use them to get over cash flow problems are likely to be disappointed. A much better idea is to choose Payost Invoice Financing. That’s because:
- We don’t purchase invoices like factoring companies do.
- We don’t run a credit check on you like Apex will.
- We don’t take forever and demand collateral like a bank will.
- We don’t charge outrageous rates like you’ll find on some short-term lines of credit.
- Our entire model is based on the creditworthiness of the utility. Not you.
- Our application process is fast and simple.
- We don’t loan you money. We pay your invoice.
Just as Apex Capital was started specifically to address cash flow problems experienced by trucking companies, Payost was started to address the cash flow problems experienced by storm restoration companies. It’s what we do and we do it better than any bank, advanced funding company or invoice factoring company.
“You only have to do a very few things right in your life so long as you don’t do too many things wrong.” - Warren Buffett
Bottom Line: Should you try Payost?
Apex Capital has done a good job helping small to mid-sized trucking companies transcend their cash flow problems. But the dynamics that create cash flow problems for truckers are different than those that create cash flow problems for storm restoration companies.
And trying to retrofit a solution for one type of company onto another type of company is an idea that’s loaded with potential problems.
Payost invoice financing can:
- Quickly provide the capital you need.
- Let you pay off your subcontractors and keep them happy.
- Allow you to conduct important equipment maintenance.
- Provide you enough working capital so you’re always ready for the next emergency.
And all without requiring a credit check, a personal guarantee or collateral. If you’re tired of the cash flow roller coaster, go to our “Apply Now” page. In just a few minutes, you can start the process of having your outstanding invoices paid so you can get back to being in business!