Factored loads
- Thread starter onebeat
- Start date
I'm not sure what you are asking. Are you looking for a company to pay on your freight bill receivables?
Try Coast to Coast capital in Berwick Pennsylvania. You can look them up on the internet and call them to see if they can help you out. They deal with a lot of smaller carriers from what I understand. I personally wouldn't use them because their 5 percent is a little bit too high for a recourse factoring company. I can get loads factored for 2.5 percent elsewhere for recourse or 4.8 percent for non-recourse.
I don't think he does either.
Well recourse means that if the broker does not pay the factoring company, the factoring company will come after you and your assets for the money. But if have a non-recourse contract with the factoring company, they technically are not supposed to come after you for the money if a broker skips town. They are supposed to eat that paper, but most of the non-recourse contracts skip around that fact and sometimes have clauses in them to protect the factoring companies!
It's all the same deal, so why not save 2.5 percent. Then if you are a smart carrier, you will give your drivers the option of getting paid the same day they deliver for a fee of 2.5 percent, and your factoring operation is funded by the drivers and does not comme off of your 15% profit margin!
Dispatcher
Active Expediter
If a factoring company tells you they are non-recourse company that will be the first lie they tell you. All factoring companies are recourse! If they do not get paid from the responsable party they will hold some of your reserves to pay for it. If anyone has a contract that says the company is non recourse company please fax it to me at 314-750-8280. If you want an honest factoring company that pays from faxed copies and if you get it in by 2pm they pay you by 5pm. 4% fee plus a reserve hold. Call my contact Richard at 913-393-6115 and tell him Larry Baty told you to call. They have been completly honest with me and the other drivers I know that use them.
Jefferson3000
Expert Expediter
Even all recourse companies are not the same. Some take 5%, and pay you your 95% quick. Some take 2.5-3%, but they only give you 90% quick and hold the rest until they get paid. Some will take 2.5% and factor anything and everything you hand them, and then if they don't get theirs in 60 days, you get charged back. Sometimes that extra 2.5% for a company that will tell you up front when they cut someone off is worth much more.
Most non-recourse companies won't factor 80% of the companies that advertise on this site, at any rate.
Most non-recourse companies won't factor 80% of the companies that advertise on this site, at any rate.
How can you run a brokering operation that has at least 200k in invoices at any given time without using a factoring company? If you do not pay the truckers or the trucking companies fast enough your Transcredit credit score will be low. I doube many new brojers or trucking companies have 200k on hand to just throw around lol!
Plus factoring certain companies is safe. Like factoring Panther, or Express 1, National Logistics and a few other of the larger boards is pretty much as safe as it gets. Oh, these companies offer quick pay at 3 to 5 percent and the factoring company can do better than that. Also, brokers who use factoring companies get more trucking companies to work with them because they know that they are always going to get paid. So, even if a shipper refuses to pay, the company that pulled the load got paid, the broker would then have to caugh up the money and go after the shipper.
Also, some people do not know how to collect from companies that have stiffed them. I know a collection agency that charges 25 bucks to begin harrassing collection phone-calls every day and they will also file against a brokers bond for free! When you threaten to file on their bond, that's when the brokers usually pay attention to you. You have to be really careful who you get loads from because there are a lot of people who broker loads and they do not have broker authority or a broker bond and that is illegal. The regulations state that in order to broker loads, you must be a property broker of goods and have a broker bond or a broker trust fund in the amount of ten thousand dollars. Contract authority can only be used to get loads directly from the shipper, not to broker them out!
Plus factoring certain companies is safe. Like factoring Panther, or Express 1, National Logistics and a few other of the larger boards is pretty much as safe as it gets. Oh, these companies offer quick pay at 3 to 5 percent and the factoring company can do better than that. Also, brokers who use factoring companies get more trucking companies to work with them because they know that they are always going to get paid. So, even if a shipper refuses to pay, the company that pulled the load got paid, the broker would then have to caugh up the money and go after the shipper.
Also, some people do not know how to collect from companies that have stiffed them. I know a collection agency that charges 25 bucks to begin harrassing collection phone-calls every day and they will also file against a brokers bond for free! When you threaten to file on their bond, that's when the brokers usually pay attention to you. You have to be really careful who you get loads from because there are a lot of people who broker loads and they do not have broker authority or a broker bond and that is illegal. The regulations state that in order to broker loads, you must be a property broker of goods and have a broker bond or a broker trust fund in the amount of ten thousand dollars. Contract authority can only be used to get loads directly from the shipper, not to broker them out!