Factoring company

Everybody has a different business model and uses what works for them. I don't use factoring companies because I rarely use brokers. I have direct customers that give me a check on delivery, and I do the rest of my business only using Convoy and Uber for backhauls who pay me within a couple days without factoring fees. No invoices to send, so no waiting for payments. Honestly, if I was relying on brokers and factoring only, I would have dropped out of this business months ago. The last 3 months I'm finally seeing some high paying loads here in the western states that are turning things around quickly for me. This month is my best so far over the last year. Hopefully it continues for a while.

 

What does Uber pay a mile

 

That's like asking what brokers on DAT pay per mile. There is no set rate. Shippers post loads on Uber and Convoy, some pay high and some don't.

 

I was under the impression there was no negotiating on Uber. What do you average per mile using Uber?

 

simple , if are a single driver or have a 1-3 drivers and can wait 30 days max on no fee or 2-5% quick pay on 7-15 days then don't do factoring , if have multiple drivers than go with a factoring , no drivers want to see their money in 30 days , factoring make 90$ advance on payments once you sent invoices, my case

 

Invoicing is not much of a workload with QuickBooks app on iPad/iPhone. If it’s a new customer, I build a profile the night before delivery, build the invoice, and attach the rate con. Then after the signed pod, I attach it and it’s ready to send most days before I leave the receiver. It’s even quicker if I already have a customer profile.

for a new customer, takes 5-10 minutes. For an existing customer it takes 3-5 minutes.

 

Yeah, factoring companies make it sound like if invoicing is a big deal. I do it all in my phone. About the only things I use my laptop for is for booking loads and creating or revising forms such as trip sheets.

 

Part of the reason why people struggle or even go out of business is because of not knowing enough. I was speaking to a young guy a few months ago, and he told me he gave up his authority because loads weren’t paying enough. I asked him who and how many brokers he worked with, and he said like 3. Anyone will struggle in those circumstances.

 

if you are a single driver there is not reason to have a factoring , you have a flett with 5 drivers or more then that would be the best choice , unless you have a big line of credit / loan

 

I’m starting to think that for fleets, using a (good) factoring company can increase your profits by being able to put to work tens of thousands of dollars as opposed to only saving what factoring will cost. In other words, if you can make more money than what you would save by not having factoring, then getting factoring makes sense.