I run a three car wedge and I'm having trouble finding a factoring service that will accept me. They are saying I have to many invoices for not enough money per invoice. Anybody have any suggestions.
Factoring service for small invoice amounts?
Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by bignick, Jan 21, 2015.
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
I looked into loves factoring there for a bit and they were very nice and the terms seemed good too. But in the end I just couldn't justify giving away the money lol
-
Have you thought about going to prepaid or COD? You could also set up a line of credit with your bank that would cost less than factoring. I don't know your average invoice amount, but D & S, Apex, TAB Bank, Rivera are all factors. I don't recall their minimums. At one time I used D & S, but that has been several years ago.
-
You run a three car wedge and you need to factor. I see a big warning sign ahead. Take G/man's advise above and go COP, COD or quickpay until you build up enough fund in your account to get you by for 30 to 60 days, it's the surest way to survive this business.
-
So your saying since I run a wedge I don't have customers that don't pay ontime or like having free access to credit checks or like saving on fuel or having to stop by the bank everyday??
-
Nick, I think what he is saying is that one of the reasons people run a pickup/wedge is because you can (to a degree) get started for less money that a full blown car carrier, believe me, if you think that 3 cars add up fast you haven't seen anything yet, wait till you get an 8 car up.
Although I can sympathize with non/late paying customers or brokers, factoring IMO is a sign that something is wrong, bottom line is either you are moving freight to cheaply, or your expenses are too high, we all have people that pay late or stick us from time to time.
Is there any possible way you can increase your cash flow, maybe condense a couple of loans you have into one payment, or take less money out of the business?
First step, figure out what your TRUE cost per mile to run is, and then your TRUE average income per mile, if you are upside down or too thin, factoring will only be a Band-Aid until the bank knocks on your door to repo your equipment.
JMHO,
Stanbrian991219 Thanks this. -
I'm not asking for people opinions on wether or not to do it. I'm not just getting started. My situation is different. My son is waiting on a liver/kidney transplant. I don't run every week. I have a house in Charlotte but we stay in Milwaukee waiting on his transplant. I'm just looking for a way to get paid faster. I have no truck or trailer payments. If you can't recomend a good company to go with or you have never done factoring then your opinion doesn't matter to me.
-
O.K. no problem, but that is not how your OP came across, best wishes for your son.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.