Invoicing was required when I was factoring. I invoiced the factor company for every load I wanted factor. I don't use factoring company anymore. Same number of invoices to send, 1 per load. Factor fees,I had the option. Up to 3% depending on how long factor received payment. This was full recourse. Non-recourse cost 5%. But the factor company had the qualify to be eligible.
There is no negotiating with Uber, but there is with Convoy. I won't haul any loads on Uber for under $2.25 per mile. Earlier this week I hauled one for $4.00 a mile for over 800 miles. This morning I'm delivering a 1,200 mile load from Convoy that is $2.70 per mile. It all depends on how desperate the shipper is. I also haul a reefer.
I read that some factoring companies can end up charging more. Say when the customer you hauled that load doesn't pay for after 30 days now the factoring company may have something in the contract and up there percentage. Maybe as high as 10% That is what I heard. Say they charge 2% but after 30 days they go up, after 40 they go up and so on.
usualy 60 days with recourse , just make sure they pay in 30 days or you can ask the factoring how they have been paying lately before taking the load in case they pay in 60 days or more
There is no reason for anyone to factor. Period. If you don’t have the money then your not doing it right and dying a slow death anyway. IMO other then maybe a 1 man operation in its first 6 months, nobody should be factoring. The more trucks your running, the more important it is that you not do it. I don’t want to hear any of the bs excuses. Look, if you can’t afford to add another truck and run on your own money then you have no business adding that truck yet. I started with 1 OLD ### truck and trailer 12 yrs ago and never factored 1 invoice in my life. I’ve slowly grown the right way always on my own money. I have a 100k line of credit for years now and never used it once. Nowadays between our trucks, owner op, little brokerage, we invoice out $250,000 per month and still doing it on our own.
