So you want to "own " your own company

Thanks Josh, I have got two recorded phone calls from them today and there is no phone number to talk to anyone so I was being cautious.

 

Thanks for all the info!!!

 

Thanks to G/MAN for the wealth of info on authority!!!!

 

You are welcome. Glad to help.

 

I am sorry that I missed your post. When I first considered factoring I checked a number of them. Some had minimum monthly fees, minimum number of invoices or volume per month or restrictions where I had to factor ALL invoices with them. I looked at recourse and non recourse factoring. Most recourse factors use a sliding scale based upon the length of time a shipper or broker takes to pay the invoice. In many cases, the fees were close or could even be higher than using a non recourse factor. I had a couple of shippers that paid upon presentation of my invoices or COD and I did not want to pay a factor to shuffle paperwork on those accounts. In my case, the non recourse factor that I selected has worked well for me.

When a load is delivered I put the bol in an envelope that they proved and drop it in a Trip Pak station anywhere in the country. They receive the invoice the next day and fund the bill the day it is received and the money is in my account the following day less their percentage. Recently they have begun a program where some brokers and shippers will accept fax or email copies of BOL for delivered loads. I can fax it to the factor and they fund it the same day. It takes a day to get into my account. So far, I have not had a problem with them. I have done business with this particular factor for a number of years. At one time I did factor a lot more invoices, but I don't do much with them any more. I believe this factor charges $1 to do the electronic transfer, but that is the only other charge. I get all my money up front without any reserves being held back. If I did a higher volume of factoring I might consider recourse, but this works for my business model.

My factor has taken invoices from brokers who have taken over 30 days to collect, but it is a case by case basis. If a broker or shipper takes longer then I don't want to do business with them. I also don't usually do business with anyone who has been in business less than 1-2 years. I have done business with a couple of them who were new, but it was either prepaid or COD. If it is COD I have a comcheck or similar payment before we allow the freight to be taken off the truck. I have been very fortunate on losses due to non payment. But, I am careful with whom I do business. I turned down a very good paying load a couple of months ago. I wasn't sufficiently comfortable with the time the new broker had been in business, so I passed on the load.

There is another reason to factor. If you have a single truck operation where the owner drives the truck and are out for several weeks at a time it makes it easier to get money into your account when you factor or do business with those who will cut you a comcheck. If you travel and there is no one at home to get the mail, you may want to get a PO Box for brokers and/or shippers to mail checks. I don't like to leave checks in the mail box. Most factors will direct fund your bank account or cut you a comcheck.

 

G/Man, who are you using?

 

D & S Factors. www.dsfactors.com.

 

It sounds like a great deal and you seem very happy with it. I wish everyone had similar experiences with their factors. You comments on not doing much business with people that take more than 30 days to pay is important....it means on average, the factor is collecting in less than 30 days, so charging you 5% for non-recourse is fair for both sides. Everyone should have your discipline. You should give a plug to your factor and disclose their name for others on this board.

 

I know some people have had less than desirable experiences with factors. I did a lot of research before I decided to go with my current factor. It was the best match for me at the time. I have too many other things to concern myself without having to worry about getting paid. I did mention my factor in the above post. I have also mentioned them on other trucking forums. I don't mind passing along names when I have had a good experience.

 

Greetings everyone, Is there a sample Business Plan with financial forecast formulas available for or to start o/o? If yes, please let me know where to find one. Thank you...!!!