BLACKLISTED

Same here. No billing, no collecting, no worrying about it is well worth it to me. In my previous business I was always 40-70k out on outstanding invoices, and had to dedicate a job to that position.

I've dealt with it for 17 years. No more

 

As long as you realize that it is a loan costing you over 36% APR on that money and the factor company has full recourse on that money if they don't collect from the Broker-Shipper. Even when they say it is a non-recourse loan.

Not saying never Factor just use it as a very expensive tool to help out with short term cashflow problems till you have the capital on hand to never need it.

 

I don't factor but, I use to think factoring was for short term cash flow problems......now I see it as a way to get paid for sure without having to worry if your gonna get paid or not.

 

I respect your opinion, but I have no cash flow or savings issue. Everyone on here thinks if "you're factoring, you're broke". Not the case for everyone. I'm the one paying it, and for me it's well worth it.

I'm not mad at anyone for not factoring, and I really don't get it when someone mentions it and everyone has to post about their disdain for it.

You do you, I'll do me. For someone who doesn't mind the aggrevation dealing with collecting, I get it. I got into a truck to simplify and calm the stresses in my life, working pretty good so far.

 

Problem, is as Bennys mentioned there is no such thing as non-recourse factoring unless your customer goes bankrupt. There truly is no such thing as a free lunch is those business for the Carrier.

The Truth About Non-Recourse Factoring | Commonwealth Capital, LLC

 

That was my next question...

 

Personally, I think it's a better option to do a quick pay or something similar if one does not want to wait for contract terms like NET15/30/45 etc etc. It's a little cheaper with no strings attached AND you don't have another parasite in your pocket dictating how you do business.

 

You really need a simple math course. Your not taking out a loan. You sell your invoice for 3%. You don’t pay 3% a month on that invoice.

 

I don't see the point of factoring these days if you've got the money to cash flow it. Why let another company get first right of payment on your ####? It just seems like that's inviting pain later on of you try and rid yourself of them. I hate floating $30k as much as the next guy so I'll simply quickpay something occasionally to keep the float down. It's not hard to come across quickpay at 2% working the load boards.