Factoring service for small invoice amounts?

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.

 

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,

Stan

 

O.K. no problem, but that is not how your OP came across, best wishes for your son.