Factoring Companies

I use Factor Direct Corp from Ontario, they have been good for me. They will usually try to finance every invoice but after 90 days of no payment from the customer you have to pay them back. Although I had an invoice that went over 90 days once and they were very accommodating since they seen I was doing what I could to get payment (got a representative from Loadlink involved). Other companies that are non-recourse factoring (don't have to pay back if the customer doesn't pay) are very picky on who they will factor.

 

Unless you have connections to your own clients/customers, Loadlink is the only reliable way to start. Authority is just the safety fitness here in Alberta. It is a short course now and a test, not too difficult. You need a truck, insurance, registration etc before being able to apply.

 

You will never come out ahead being leased to someone. They keep you at a rate where you're making the same maybe a tad bit more than a company driver. When I called around they wanted to pay $2 a mile for superb flat after fuel surcharge included. I went on my own and started making $3-$4 a mile right away. Right now I make about $3-$6 a mile for triaxle. It is alot more work to be on your own though. If you need someone to take care of paperwork or book loads because you can't use a computer or something then being leased on is the only option.

 

Make sure you truck and trailer are good to go and don't have a lot of issues. I'm fighting with an other truck I started with. The repairs arent the killer since I do my own work, its the loss of revenue. I could have taken home $40-$50k this last month if I have a truck that could go full blast. You equipment reliability is important.

 

Factors are the best way to put your customer list and rating info into the hands of someone who has way more trucks than you do. It just works that way, it’s not supposed to, but in a the haze of free lunch, booze and of stripper dust it does. Beware.

 

You don't factor with a trucking company, that's like saying don't use a bank because they will know all your customers. That arguement doesn't really make sense