Factoring % | What's normal for a starting out company?

What is your business?

 

I factor because of the time it takes to do all the paperwork and tracking of loads and payment. I do all the back office work. Scheduling and driving.
SO I see it as paying for an office I don't have in house. More efficient for me. More drive time for me. Less paperwork when I get home.

 

Tracking loads and payment really isn't that hard to do .... when you get home or have someone check the mail and the cheques arrive .... make a spreadsheet in excel put in invoices and date sent and another column of when the money is received ...simple.

....unless there are cash flow issues to begin with.

 

Ya CASH flow problems. With factoring I have 100% percent control of the cash flow. All done electronic.
Checks received in mail. The wife has 100% control and I see no cash. Cheaper to pay the factor company.

 

Lol ... fair enough! I forgot to factor that in.

 

I don't use factoring or quick pay, I look at it as no different than leasing onto a carrier.

If you do your invoicing at the end of every day/load it doesn't take long at all. It takes my computer longer to boot up and shut down than it does for me to fill out an invoice. Excel is a great program, I use it to keep track of my miles for IFTA as well.

 

I have never used Excell.
Trips I bill dirent. I have a blank invoice PDF. Bring it up, fill and sign. Keep track in my documents file. When sent and move to a different folder when paid.

 

Here is what I am getting at. If you give up 3% per invoice and say run 2500 miles a week at $2 that is nearly $8,000 a year you are pissing away because you couldn't wait 30 days to get paid. I don't know about you but I work too hard for my money to waste it like that.

 

Contractor in oilfield mainly but we also do trucking for hire, dirt work, hauling dirt and gravel, etc