Quitting factoring

I use Apex. Not happy and not unhappy with them. I like I don't have to send all receivables to them. The one thing I like is I can check on customers(brokers) credit before I book a load. My average cost last year was 2.84%(per invoice) the rate varies with the amount of time it takes for them to get paid. cost is 3% for 30 days. My money is direct deposit 2 days from submitting invoices. For example I submit invoices Thursday before 3 pm and I will have money in my account Friday morning.
I run for Mercer, Landstar and a couple other brokers that pay quick without a charge.
I factor about 50% of my loads. Had a rough spot 2 years back. Hope to go without factoring in another 6 months.
My revolving line of credit is much cheaper at my bank. That's only 9% apr. That is maxed out right now.

 

Just to follow up with my experience with e Crapitol for comparisons sake.

They have not factored a single bill since October of last year. However, I did send them 12 bills and 4 were sent to them by mistake or through the difficulty that I now refer to as "beating my head against this gigantic rock of incapable moronity".

Entirely despondant, I received no email, no mailstatements. They just keep your money until you holler loud enough to get it. Effectively, anti-factoring.

A term I coined and hold dearly for my friends at e Capitol only.

A stream of demands for forms I must sign and have notarized to end our agreement followed only with a form letter from them after I spent hours tracking down lost checks that were simply sitting on desks at e Capital ! Your $500/mo doesn't even buy you an email when they illegally seize your property ! Stay away from this corrupt den of theives !!!

 

Now that I'm sitting at home, I can detail a little more.
Apex has been good for me. They have many options. Non-recourse is 5% flat rate. You assign them an invoice and they charge you 5%. If they don't get paid, you keep the money they paid you.
Recourse is a variable rate low I think is 2% not sure how short that is because mine have always been around 20 days or longer.

When I assign an invoice to Apex they hold 10% and pay me the rest. IF they don't collect the payment within 90 days they charge me back for the total of the invoice, plus the %charge it may be as high as 5% not sure never has happened. They have a credit rating service to check brokers before giving credit. If the broker is not on their good list, they won't accept the invoice.
When you first submit a broker for payment, use broker AAA, every load I do for AAA I have to submit for factoring, until that broker is all paid. So if I don't use broker AAA for 60 days and Apex has all invoices paid, I can have them send a release letter to AAA and I can collect directly. No more commitment to Apex.

When Apex gets paid, they process the payment if it takes 30 days to receive the payment they charge me 3%. They initially held 10%. I get the 90% difference. For example $1000 invoice , when submitted I get $900. When Apex receives payment I get $70. $100 minus the 3% factoring charge $30.
The extra charges are $2.50 for tripak of invoice to Apex. $3.00 charge for processing each payment. This could include as many invoices as you submit for each payment. Could be 1 invoice to 100. $25 for the actual payment to me.
If it takes less than 30 days for Apex to get paid it cost less. 20 days 2.5%. They have a published rate sheet in the information site.
I have no minimum dollar amount I have to submit per month and I don't have to submit any invoices.
Every month I get the settlement from all invoices paid. This is added to my first factored payment each month.

Also when they receive a payment from someone they did not factor a load for me. They send me an email notification. I send them an invoice via email and the pay me the money in my next payment.

They offer a fuel card, I don't use. My fleetone and the B2B card I use work better for me.
Much more information available on there website. Apex capitol .
Good luck

 

I don't factor and never have, BUT can I use them to check customers credit without factoring the invoices to them?

whats the best way to check customers credit?

 

My wife can verify,but I think when you subscribed to a load board you can check it right there.
As far as a broker.

 

Yea I know the loadboards are a good way to check brokers credit. What about direct cûstomers..

THANKS

 

Brokers should be your main concern.
They are far more slippery than "customers."

 

Thank you so much for your informational reply. It helped a lot! Thanks again

 

I have an older rig and reefer. I do all of my own maintenance. I quick pay all. I figure the rate accounts for this.
I think most out here do not understand the operating costs. 1/2 mileage = fuel. At least be able to do your own tires and brakes, LOF. I know a lot of O/O go bankrupt because of maintenance. Most do not understand the CPM of tires. Using truck-stop shops is a big No No. To many think $1.5 per is a reasonable rate. Running regional and developing a plan is very critical to my operation. Some brokers are more dominate in different regions. Too many take what is given running willy nilly from dead zone to dead zone. Relying on one or two brokers can be detrimental to your operation. For me, factoring is a big No No. Quick pays are definitely less expensive with the larger brokerage companies, and if using there boards you can see ALL that they have. rather than a general board. Plan , Plan, Plan. It is the key. 4 to 8 days out. I have found a 2k difference with insurance rates, same company, different agents from different regions. New venture or experienced.