Factoring company resumes operations

A freight factoring company that abruptly shut down – affecting over 350 customers – is back open for business.

Weatherford, Texas-based CoreFund LLC had recently ceased operations in the midst of an ongoing spat between the two brothers in charge of CoreFund’s holding company. The banks that provide funding to CoreFund froze the accounts associated with the company as a result of the disagreement. Because of the freeze, the company’s day-to-day operations came to a complete halt.

On July 28, a receiver for CoreFund was assigned by the courts. This action would allow for operations to continue – protecting CoreFund’s assets and customers – while the legal dispute was resolved. At that time, the receiver believed it could take up to two weeks to have the company back up and running.

On Aug. 4, the factoring company reopened for business. Scott Christiansen is the managing director for SafeWater Capital, the company overseeing the receivership for CoreFund. According to Christiansen, all of CoreFund’s employees have returned to the office and business operations and procedures for the factoring firm have returned to normal.

Uniform Commercial Code liens held by CoreFund on their customer’s accounts prohibited those carriers from securing factoring services with another company during the freeze. Bonnie Castillo, president of CoreFund Capital, told Land Line that UCC liens for customers are being released once the account is paid off. Additionally, UCC liens would be released if CoreFund were to be purchased by another factoring company.

Castillo says that her staff is committed to returning to normal operations for their customers.

“Our team is working diligently. They care a tremendous amount for these carriers, and this group of people feel absolutely horrible for the situation that has occurred,” she said. “They are here and ready to speak to clients, answer any questions, and take care of any concerns and fundings that they have.”

Carriers are encouraged to contact their CoreFund representative directly with any questions or concerns regarding their accounts. LL