What’s a good factoring company?

Why use a factoring company? Any reputable broker will offer quick pay for a fee, or you can book loads on Convoy or Uber with direct deposit to your bank account within a couple days with no fees. It ain't rocket science.

 

Cashway 1.95% non recourse

 

None. Don’t waste your money and fill their pockets. Most brokers offer Quickpay if you really need it. Run hard for a month and the cash will start coming at you, no need to waste your hard earned money.

 

I use Aladdin Finacial when I factor
2.9%
Available pre-paid fuel card with discounts
Money on the EFS card within an hour of submitting the POD, or overnight ACH to my bank
They buy most, but not all broker contracts
Small outfit, good to deal with

 

I am getting out of factoring. YAY! Total waste of money and time.
I would ask them how you can get out if you decide to leave. How long is it going to take them to release your accounts? Do you need to have all accounts paid for? Can you factor some loads, not all? They might pressure you to run more often and submit more to them to keep you attached to them in the long run. The more you submit you tie yourself more to them.
Also, if the broker doesn't pay them, they will take the money back they paid you even if you have a nonrecourse. It only means they give the broker about two or three months to pay. If they don't get paid, they will take back the money paid unless the broker filed for bankruptcy which is very rare. Usually, it is because they don't want to pay or try to find something you didn't do when making a delivery. So, the nonrecourse doesn't really make any difference.
REMEMBER by signing up you give them permission to withdraw money from your bank account to retrieve money a broker owns them. Read the fine print carefully. Better compare it to other agreements. They can hold your assets. Take screenshots. Some might not give you a hard copy of the agreement after you agree online. Some use very confusing language only lawyers understand.

 

And watch out. They might give you 3% but charge a high fee for ACH deposits. They can add a fee for each invoice. So, while you might be thinking you pay 3%, it might all come down to 5%. Some have tiers. Bigger companies submitting a higher volume might get a very low percentage. But an owner with one driver usually doesn't qualify because there is only so much one person can do. Your volume is going to be much lower.

The factoring might work only for bigger guys who have multiple drivers. Instead of having a secretary hired full time, you will lose less money if a factoring does collecting for you instead.

They all seem nice at the beginning. However, if something doesn't sit well with you or is hidden from your knowledge just to rush your sign up process, RUN! They will try to create an urgency for a quick sign up, for you to decide on the spot. They usually don't like to release any agreements until you agree to go with them. At this point, you feel like you have no choice. If you go with a factoring, have those agreements in front of you and compare. Ask questions, better have them email you answers, so you can have it documented.

 

I did a ton of research and I chose Transport Clearings East. I have one truck and factoring is 1.91 percent as of this post. You also have a $25 per month ACH fee with unlimited deposits (you can literally factor one load a day for any amount, if need be).

The bad......
No app for paperwork, so you will actually have to do a little bit more work on your end. But they say they are trying to get an app to make paperwork easier.
Some people feel like they need this.

Really that's the only bad thing I can think of. They're always friendly and helpful when I need them and will bend over backwards to solve a problem.

 

Wow. I did post something in this thread before.
It's been a year since I signed up with Truckstop.com but still not a single invoice factored. I did not need it and don't know if ever use it. I want to keep it this way. I cannot stomach a view of a fat bold dude with cigar on a yacht off of Florida Keys fishing like he's Hemingway...at my expense.
I take brokered loads already. Enough wasted there.

 

That's ok. I was more or less referring to a solo owner operator who needs to factor. He should not. For a solo, I tolerate factoring only as an auxiliary but not a necessity.
Some fleets due to the nature of their business may find it an important service to keep up with cash flow. That's understandable.