Factoring Companies

It don't matter just don't do it 80% of the brokers now offer quick pay at 5% or less most are 3% if a broker don't do quick pay it's because they don't have the backing or the money to do it so I stay the he'll away from them
As a O/O if your factoring loads its because you don't have the money I don't pull out my drive unless I have $10,000 in the bank I'm just saying they are in it to make there tax free money!!!

 

We have been in business for 12 plus years. We did it all on our own for a few years without using a factoring company. but as business increased many customers started dragging out net pay days... first 20 days then 30 days now 45 days and 1 even at 90 plus days.
we have used 3 different factoring companies.... I know I know!! Trial and error.
RTS is the worst... bar none. Stay away from them. NBT is decent but can only do or handle so much ( as in many charge backs)
I must, must recomend TFS , great people , great service, resonable % on funding. FYI you can always have a short contract at first. To see how it is working for you. Ask for the type of service you need exactly.... let them know just want you want and need... if TFS can do it they will.
WE have been very pleased with TFS and the whole team there.

 

I like mine with eggs and a little hot sauce.

 

Lol don't feed the trolls??
i checked that factoring company you posted.... Omg!! Fees are waaayyyy to high !! Find another factoring company quick! Best case... Be in position to NOT use factoring at all... That said we all know how the economy is these days so if you must use factoring... Look for lowest %, and watch out for number of days they give you before they up the % rate by say 1 % every 30 days etc. It all depends on the vol. you are doing and need factoring for. If you have customer/ broker who pays within 20 days... Then forget factoring... You don't need it.

 

You hit the nail on the head!! sounds like you are a savvy owner operator. Many brokers even offer 2% quick pay... In that case doing quick pay is costing less than factoring. But what if you have many customers? Lots of loads... Fuel cards to pay off weekly? That's a lot of cash going out in 1 week. Many drivers out there cannot fork that out in a week then wait 30,45, or 90 days.
also something I try do do is include the cost of quick pays or factoring in the rate per load .

 

Unlike you factoring with this company was my worst No No! I wish I would have read the negative side of this company from previous customers before signing up for one whole year. You sound like one of their employees and not a real customer.

 

Factoring companies are like legalize loan sharking, never do it, once you get in, The factoring companies make it very difficult to get out.

 

I disagree. First of all, the 5% is usually priced on the basis of 60 days to pay, not 30. If you are getting paid in 30, there are cheaper options. Second of all, that rate probably is for non-recourse, which includes credit insurance to protect against bankruptcy of your customer. Finally, you should consider that factors provide more than just money. We manage your AR and check the credit of your customers. If you manage your AR or have an employee do it for you, how much is that costing you? Not free is it? What about uncollectable invoices from companies that have bad credit but you never took the time to check their credit? At the end of the day, reputable factors provide valuable services that can help you grow much faster than if you did not factor.

 

I would highly suggest you read up on NBT
I , one of many, have been put through a nightmare by them