from South Africa. Shortly after meeting, the two
launched a factoring business from a spare
room with not much more than a desk
and a thermal-paper fax machine. They
began building a partnership that has
allowed us to develop an enduring
business helping small companies
grow and thrive by gaining access
to capital. Over time, the trans-
portation segment became the pri-
mary industry they served, and that
has evolved to what is now eCapital. Over
the last 25 years, we have purchased bil-
lions of dollars of invoices
and helped several thousand
owner/operators and small fleets
succeed by providing access to capi-
tal and predictable cash flow.
We provide invoice financing, or
factoring, services to new entrants
and small fleet capacity providers that are vital to the health of
the U.S. truckload transportation
capacity base. We manage carrier
payables for brokerage-based 3PLs
(third-party logistics service providers), accelerate payments to a
growing list of last-mile delivery
providers, and increasingly, act as
a technology and services platform
that powers the transportation settlement process for
TMS (transportation management software) providers, visibility applications, and the new generation of
digital freight-matching innovators.
QThere are a number of factoring firms that serve the transportation industry. What is different
about eCapital?
AWe have a clear vision and are highly focused on the business that we’re in. For us, this means we
are reinventing transportation financial services by
accelerating access to capital and streamlining the
flow of information and funds to enable shippers,
carriers, and logistics service providers to adapt,
grow, and thrive in the digital age. Second, we are
a business with deep knowledge and experience with-
in the markets we serve.
QTo what degree have last-mile providers, which ave gained prominence with the expansion of
B2C (business-to-consumer) commerce, been underserved in the development of factoring solutions?
ATo say the segment is “underserved” might be a bit of a stretch. I think I’d qualify that by
saying that it’s somewhat underserved. I also think
it’s fair to say that on the surface, when compared
with other traditional long-haul segments, last mile
may not appear to have embraced invoice financing
(factoring) to the same degree—but
the demand is there. Some providers strictly operate intra-state and
are part of larger regional carriers
that hold the service contracts with
shippers—they have the capacity to
settle quickly. But many do not, so
we help those carriers grow.
Q Do those providers have unique factoring needs relative to the
truckload carriers that have been
factoring companies’ traditional
customers?
AYes. There are unique opera- tional processes, technologies,
and business rules that come into
play and dictate how we efficiently process and manage last-mile transactions. Aside from that, the goal is
the same: We enable owner/operators and small fleets
to grow and thrive by providing predictable cash flow.
QWhat role do you see blockchain playing in the segment of the industry that your company spe-
cializes in?
AFinance and carrier settlements will be among the first, if not the first, widespread deployments
for blockchain in transportation. I think blockchain
will play a major role in reducing fraud, establishing
security and visibility, and streamlining the entire settlement process. We are members of the Blockchain
in Transport Alliance (BiTA) and look forward to
