No gripe. You might want to rethink the 4% fee thing. a 4% charge is a 48% APR
Other than that, carry on fine sir
good Non-recourse factoring
Discussion in 'Ask An Owner Operator' started by HopeOverMope, Dec 27, 2017.
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20 Mule Team Thanks this.
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gokiddogo, TallJoe and whoopNride Thank this.
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If you factor 15k for 30 days it cost $600. You borrow the same 15k every month for 12 months it cost you $7200 in a year. 48% apr.
You can get a 15k dollar line of credit from the bank for 7%. If you keep it maxed out every month it only cost you $1050 per year. 15,000 x 7% = $1050.
Math lesson over!!Nostalgic, gokiddogo, freightwipper and 1 other person Thank this. -
It is what it is, and it is what I had to do. Rates collapsed, and I saw no other recourse, I sold out and headed to the Oil Patch and really had to work. My buddies, they filed bankruptcy. Two are now dead, and one is a company driver, but he cannot afford to buy another truck. Me, I have a truck, busted my ### in the oil fields of ND and as of now am doing OK. What tomorrow brings is another story.
There is a property up for lease down the street, and I have a few ideas, well one, and have the coin CASH to maybe accomplish it.gokiddogo, whoopNride, boredsocial and 1 other person Thank this. -
I used an example on another thread the other day. My insurance was up for renewal on the 22nd. My underwriter offers a 15% discount if I pay the annual premium upfront. It was like a $1400 savings for me. I had several invoices about to pay. Instead of stressing over it, I paid the full $7,458 amount out my personal low interest credit union LOC. A few days later when the cash flow built back up I paid the LOC off in full.
It cost me $16.52 in short term interest...
Compare that to factoring at 4%. $7,458 @ 4% is $298.32. I saved $281.80 comparatively speaking.
Look, I know that cash flow can be a real issue for any business, large or small. Been there done that. However, a lot of money is being collected by these factoring hawks. The goal should be to get to the place where not one nickel is spent on the "generosity" of these companies.gokiddogo, whoopNride, HopeOverMope and 1 other person Thank this. -
Scooter Jones Thanks this.
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If I decided to bill direct without a factoring company, what are some good ways I can check credit so I can help make smart choices to whom I should extend credit?-
I'm familiar with Truckstop.com and using their credit rating/ days to pay and etc... the fleet I'm with now uses RTS financial, and I book my own truck most of the time , most of the brokerages I choose, RTS approves...
So I was going to ask OOIDA if they have some type of provider that we can run credit checks with and read reports on brokerages... that would help me gauge better whom to do business with [brokers & direct customers]Last edited: Dec 30, 2017
stayinback Thanks this. -
If you can't afford RTS credit- (I think like $110 per month includes D&B Market sharing and criminal activity with every aspect of transportation.
For Free,Just do your homework-Real Easy- Use your senses God Gave you- If you Smell a Rat- Its a Rat, Simple as that
If you run for brokers exclusively,,,Even Easier, to Check For Free everything about them via Safer or DAT services
Like I say...If you "Feel" it from the start like its gonna be a puzzle......Leave it be.HopeOverMope Thanks this. -
Baxter Bailey is a trucking collection agency. They also have a rating for brokers and shippers.
HopeOverMope Thanks this.
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