Factoring? Is it for u?
- Thread starter csands007
- Start date
Tennesseahawk
Veteran Expediter
I'm looking into factoring for the short term (6 months or so). I've checked out a few trucking forums where they have a large independent membership, and read what they say about factoring companies. That would be the first place to check.
One thing I read about non-recourse... most only clear you of non-payment if the broker you dealt with goes bankrupt. Otherwise, you have to pay just as you would with recourse.
Do your math on the rates. That 5% for a bill paid in 30 days is like a loan that charges 60% annually. At the same time, they serve their purpose. Just do your homework, so you won't be taken.
One thing I read about non-recourse... most only clear you of non-payment if the broker you dealt with goes bankrupt. Otherwise, you have to pay just as you would with recourse.
Do your math on the rates. That 5% for a bill paid in 30 days is like a loan that charges 60% annually. At the same time, they serve their purpose. Just do your homework, so you won't be taken.
Tennesseahawk
Veteran Expediter
I agree, Col. But looking fuel being around $5, that comes out to $6250 for 10,000 miles in your first month before pay starts rolling in. And that's IF your first and subsequent runs pay at 30 days, and not 45 or 60. After paying for the authority, permits, insurance, etc., not many have that pay stashed. If they did, then why would they leave being a contractor?
A few months of factoring wouldn't hurt, if you could be responsible with saving up for that $6250+. I could see some abusing it like credit cards, tho. 5% is 5%. It's up to you if you want to spend $10,000 of a $200,000 yearly gross on a low-rate loan shark, or a nice Belize vacation. I'm sure the wife would prefer Belize. Mine would.
A few months of factoring wouldn't hurt, if you could be responsible with saving up for that $6250+. I could see some abusing it like credit cards, tho. 5% is 5%. It's up to you if you want to spend $10,000 of a $200,000 yearly gross on a low-rate loan shark, or a nice Belize vacation. I'm sure the wife would prefer Belize. Mine would.
Only small carriers should factor
If your an OO then find a carrier that puts money on a Comdata card or cash advances your load pay for a much much much smaller %, I think a comdata transaction is a few bucks.
If you are a small carrier and would like the names of some decent factoring firms PM me.
If your an OO then find a carrier that puts money on a Comdata card or cash advances your load pay for a much much much smaller %, I think a comdata transaction is a few bucks.
If you are a small carrier and would like the names of some decent factoring firms PM me.
Tennesseahawk
Veteran Expediter
kw... tried the link, but either their server is down, or they're out of biz.
kwexpress
Veteran Expediter
larry I doubt they are out of biz they are Advanced biz capital.
I tried to log on to the member page and it isnt coming up for me either
there is a ton of factoring companies here is my take on a few of the ones I have used over the last 10 years.
Comdata: does not approve enough brokers
Riviera: has a sliding scale based on volume but I want my money now and they hold I think like 15% of your invoice untill paid then refund part of it after they have been paid.
freightrevolution
ne flat fee I like tons of brokers and shippers they will fund never had any type chargeback. But I have had problems when they issue com-checks it seems they was going over limit most days and sometimes I would have to wait till the next to cash the code.
however they started using t-check codes once they done that I never had a problem again.
I also like the fact that flying j offers a fueler money card with the mastercard logo
that can be used anyplace mastercard is accepted.once freight revolution would issue the code I just called the 800 number and loaded the code on the card and it was instant.
I am not using any factoring company now as I have taken some time off from trucking to get into sales but I will be back in the next year
I tried to log on to the member page and it isnt coming up for me either
there is a ton of factoring companies here is my take on a few of the ones I have used over the last 10 years.
Comdata: does not approve enough brokers
Riviera: has a sliding scale based on volume but I want my money now and they hold I think like 15% of your invoice untill paid then refund part of it after they have been paid.
freightrevolution
ne flat fee I like tons of brokers and shippers they will fund never had any type chargeback. But I have had problems when they issue com-checks it seems they was going over limit most days and sometimes I would have to wait till the next to cash the code.however they started using t-check codes once they done that I never had a problem again.
I also like the fact that flying j offers a fueler money card with the mastercard logo
that can be used anyplace mastercard is accepted.once freight revolution would issue the code I just called the 800 number and loaded the code on the card and it was instant.
I am not using any factoring company now as I have taken some time off from trucking to get into sales but I will be back in the next year