Factoring companies: which are good? What to look out for?

Well we are growing like wildfire because of our rates and offering being above and begin most competition...I'd say the wal-mart mentality isn't always a bad thing..quantity over quality of sale...high volume low margin...and our customer service is top notch...no automated menus or answering services, someone always answers the phone etc...better than most other I try to get a hold of when trying to do buyouts etc. customer service does wonders for business and carriers in need of easy to access service and help while on the road.

That's why I get annoyed with all the bad mouthing other bad factoring companies have caused carriers to do because were not all bad..

 

That's great and I'm glad you like it....but....how can you do that on 4% when the prime lending rate (amount money costs you) is 3.6%? Seems to me that quick growth is just going broke faster.

 

I don't own the company so I can't answer that G3, but I do hear your point!

 

First..I admire your enthusiasm!! If you ever need a job selling please call me first!!

4% amortized is 16% per annum. That's how you do it. I'm a small broker and I offer quick pay at 1.6%...which is exactly how much my transaction fee is to put money in my carrier's account. I do it because I believe in paying for what I get and I get great service from my carriers and that keeps my customers very happy. I don't make a dime on quick pay but the transaction fee is 85% deductible....so I get to keep about 1% of what I earn.....LOL......

And don't forget to call me..... anytime!

 

Well G3 your doing it right, just how I see it. We wouldn't be here without our carriers, so us just as yourself like to take care of them. The snake in the grass, penny pinching brokerages and factors are the ones ruining it for us.

And thanks for the complements they are appreciated! Where are u located G3?

 

And here you make my point for me and still don't seem to get it.

I'm not cracking on leasing to a carrier. It's a business model that you and many others have great success with. I've chosen not to go that route, but I don't have to rationalize my own approach by pointing out the worst case every time someone brings up leasing to a carrier.

The fact that you continue to correlate the cost of factoring to a loan APR is every bit as naïve as if I were to say that leasing to a carrier is just being a glorified employee that owns his own tools. Neither could be farther from the truth.

 

Nashville, TN. I'm a very small operation these days. 4 Brokers and a manager and a AR clerk. I also have an old truck I drive to escape from the office pretty often and to see my customers. We were bigger a few years ago but sold the field offices and downsized so we could live a little.

 

What do you mean by the prime lending rate? I thought much of the money they use is money they have in the bank, not borrowed?

 

That's funny G3, I have thought about one day starting my own op like that...office when I want, then when I'm sick of sitting at my desk I could take to the road...and when I'm not in the truck someone else could run the road..I've loved trucks since I was a kid and still do..but don't think being full time OTR is for me.

 

I started out driving for my Dad hauling produce...put myself through school driving. Taught school for a year and just about went nuts....I've been doing this stuff since 1976 and still love it....on my own terms.