eCapital
TypePrivate
IndustryCommercial finance
Founded2006 (2006)
FounderSteve McDonald
HeadquartersMiami, Florida, U.S.
Area served
United States, Canada, United Kingdom
Key people
Marius Silvasan (CEO)
Steve McDonald (President)
Charles Sheppard (COO)
Products
  • Freight factoring
  • invoice factoring
  • asset-based lending
  • payroll funding
  • equipment financing
  • lines of credit
Number of employees
700 (2022)
Websitewww.ecapital.com

eCapital is an international provider of Invoice and Freight Factoring and Asset-based lending services headquartered in Miami, Florida with operations in the United States, Canada, and the United Kingdom.[1][2] Marius Silvasan is the current chief executive officer of the company.[3]

In 2021, all of their subsidiaries and acquired companies were consolidated under one company, named eCapital.[4]

History

Steve McDonald founded the company as Global Merchant Fund Corp in 2006.[3][5]

In 2017, Gerber Finance, a company that specializes in assisting importers, distributors, manufacturers, and service providers, was acquired by Global Merchant Fund Corporation.[6][7]

In 2018, Paragon Financial Group was acquired by Global Merchant Fund Corporation. Paragon Financial Group specialized in accounts receivable financing, credit protection, non-recourse invoice factoring, purchase order financing, and vendor guarantees.[6][7]

In 2019, Global Merchant Fund Corporation acquired Accutrac Capital, a company active in freight factoring, a sub-sector of transportation market.[7]

In 2020, the company renamed itself as eCapital.[3] In the same year, eCapital acquired Advantedge Commercial Finance, a UK-based specialty lender and factoring company; Bibby Financial Services; REV Financial Group, a factoring company based in Los Angeles; and Prosperity Funding, a Fort Lauderdale-based factoring company.[7][8]

In November 2021, eCapital acquired Flexible Funding, payroll funding firm specializing in funding assistance for the staffing industry, and its subsidiary, InstaPay, that provides freight factoring services.[7][9]

In 2022, eCapital acquired UMB Bank's accounts receivable financing division and a company called CNH Finance that was active in the healthcare sector.[7]

In 2023 Former CEO Jennifer Palmer filed a Gender Discrimination lawsuit against eCapital in a Southern District of New York court.[10][11]

Fees and Expenses

eCapital charges a $750 minimum termination and UCC release fee for any contact, as well as an hourly rate of $250 and other expenses for the work of the termination. Early Terminations include the previous costs, plus up to 10% of the available client credit, plus other expenses.[12]

$25 Fuel Advance fee, Initial account fees which are a percentage or the credit, Minimum Value invoice fees, 15% mission notation fee on invoices, $200 late email/submission fax fees[13]

Trucking Industry Reviews

The Truckers report website performed a review consolidation of its members about eCapital. The result of the review was that the overall impression of eCapital was "Very Negative"[13] The main concerns and highlights listed were as follow:

  1. Difficulties in contract termination and leaving the company: The main complaints are exorbitant termination fees and very poor to almost nonexistent client service responses.[13]
  2. Refusing to return escrow/reserve money back to clients.[13]
  3. Not releasing UCC in a timely manner.[13]
  4. Multiple paged legal contracts that are only web based, and change without any notice.[13]
  5. Aggressive and Dishonest Sales.[13]
  6. Nonexistent customer service.[13]
  7. Poor Communication.[13]
  8. Exorbitant termination fees.[13]
  9. Problems with releasing funds and getting paid.[13]
  10. Unauthorized Factoring[13]

There were no positive highlights in the review[13]

Gender Discrimination

Jennifer Palmer, former CEO of eCapital, filed a lawsuit in a Southern District of New York court

Stated in the Lawsuit by Palmer: Palmer was demoted to co-CEO due to retaliation for filing a gender discrimination complaint with CEO Marius Silvasan, and then later terminated because of the complaints she made, and replaced by someone who was less qualified (and male).[10][11]

Products and services

  • Invoice and factoring, collateral lending and Equipment financing, Lines of credit.

References

  1. ↑ "Best Factoring Companies of 2022". Investopedia.
  2. ↑ Prior, Jon. "Fort Worth firm that vacuumed up soured loans after 2008 crisis raises new fund". Dallas Business Journal. Retrieved 2022-05-04.
  3. 1 2 3 Young, Vicki M. (2021-04-20). "This Growth-Hungry Factoring Firm Has Funding for Fashion—and Freight". Sourcing Journal. Retrieved 2022-05-04.
  4. ↑ "Freight financing: Lender merges acquired brands to tap into logistics consolidation power". The Journal of Commerce. Retrieved 2022-05-04.
  5. ↑ "Ecapital Holdings Corp". Bloomberg. Retrieved 2022-05-04.
  6. 1 2 "Startups too small for traditional banks, VCs could access financing from restructured eCapital Corp". Retrieved 2022-05-04.
  7. 1 2 3 4 5 6 "Our History".
  8. ↑ "ECapital receives loan for purchase of Advantedge Commercial". S&P Global. Retrieved 2022-05-04.
  9. ↑ Ifasso, Plamedie. "Miami-based capital solutions provider acquires Fort Worth payroll funding firm". Dallas Business Journal. Retrieved 2022-05-04.
  10. 1 2 "Palmer v. Ecapital Corp". casetext.
  11. 1 2 "Palmer v. eCapital Corp. et al". law.com.
  12. ↑ "Broker Factoring Master Agreement Terms And Conditions Receivables Finance Agreement". Ecapital.
  13. 1 2 3 4 5 6 7 8 9 10 11 12 13 "Trucking Companies Review eCapital Freight Factoring". The Truckers Report.
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