Factoring Companies That You Recommend For Owner Operators?

Because at $120000 you're borrowing the same $10000 every month.

 

If you factoring 100,000$ monthly in a year period you'll pay 24,000$ for that. You borrow for a month not for a year.

 

quickpay from a broker for a fee = factoring without a credit check, for all effects and purposes.

 

Oh, I see now!
But then we can say that it is like factoring $1,200 000 for the cost of $24 000 on a yearly basis, which does not look that bad for practical purposes. But yeah, no matter how you slice it, definitely better to keep that money in your pockets.

 

Wrong.
Imagine. You take a loan for one load. Your customer (direct shippy or broker# will pay off that loan after 30 days. And bank took 2% for that. You took the money for 1/12 of a year for 2%. That makes 24% yearly.

 

Not even close. Factoring is an outside entity taking control of your invoices. QP is simply a small fee for early payment. No strings nor outside parasites involved. Smart carriers add the QP fee on to the rate ahead of time.

 

If my operations as a truck owner generate $100 000 of revenue per year, and I factor all of the invoices as they come at 2% then my total cost is $2000 per year. So, If I want the same day or the next day pay, after each load, I am giving away $2000 per year. Full stop.
Now, when you say 24%, it does not correspond to anything practical.

 

Practically, If I am to wait 60 - 90 days for $50 000 worth of invoices to be paid and have the cash flow drying out, $49 000 on my hand can get me ahead. I don't care if that forfeited 1 grand results from a 2% or 24% calculation, it is going to be $1 000 for all practical purposes.
I don't care about nor need factoring or whatever just wondering why trying to make it look more complicated than it needs to be. Other than that, I fully agree, better not to factor than to factor, if you have enough cash.

 

I’d love to follow that logic. Can’t.

how are brokers not outside parties?
And, why do smart carriers not add the factoring fee to the rate beforehand? Or the truck wash fee, or the ELD fee, or the shower fee, for that matter?

 

They are directly involved in the transaction and are needed if the freight owner only uses them. You really should spend some time reading the endless threads here about factoring instead pf spreading misinformation. Are you even an OO?