Freight factoring

Bibby Transportation. Ask for Scott Blackburn

 

They charge 1.59 percent for 30 days then an additional 1 percent every two weeks. I find that most brokers get you your check in less than 45 days of recieving invoice. They have a nice website that tracks everything. They also have a very good credit check website that gives tons of info on brokers. I shopped around quite a bit and can't find anyone that can beat their rate. It's also only a 10k min. Tell him Fast Shadow Trucking reffered you. Good luck

 

Why factor when so many good companys pay so quick. Like Mercer within 24hrs of faxing the bills. Most factoring companying will only factor with the well credited companys. If you use the credit check like internet truckstop or members edge has, you can pull for the better companies and get paid without the extra cost.
I also found out, if I put on my invoice "7% discount if paid within 10 days" I got paid quick on most others also.
Factoring servics used to be the way to go, but anymore these brokerages will pay quick if you offer the same discount.
I actually had a customer that would ask for the discount if paid upon deleivery so I got a check upon deleivery.

 

Why on earth would you offer a 7 percent discount on the total bill??? That is way more expensive than what a factoring company would charge. If your willing to wait 10 days to get paid at a 7 percent discount then why not wait 2 days and pay 1.59 percent? I agree that there are some good companies that pay quickly but not every company does so if you can't wait 30-45 days to get paid then you have to have a plan.

 

I guess I never needed to attain much cash to keep running as I only offered a discount when I took a load from a very slow paying customer and then figured the extra cost in bidding the rate.
I never used a factoring company but the few times I checked into it, they told me I had to give them so much invoices per month like $10k.
And then whenever I set up a new broker to use, I would have to put the factoring company in the contract if I was goning to use them.

This is why I found offering a large discount was cheaper for me. 7 percent on 1000$ was 70$ that I would use once or twice a month. Where as if I used a factoring company at 2% ( the best I could find) on 1/2 my loads would cost me well over the $70-140 a month.

Maybe factoring companies are lot cheaper now than they were 5 years ago.

Just please read the fine print on all their contracts.

 

Bibby sounds very reasonable. I've been getting by using broker quickpay options and/or just waiting for checks but now I am sticking a bunch of money into repairs and I'm going to be running slim when I get going again. I'm considering Freight Capital because I've heard their fuel card is pretty good, I figure I can at lest get some of my money back on fuel discounts. I'll be talking to them tomorrow as far as percentage and which invoices I'm required to factor, etc..

 

Sixteen years former fleet owner and operator; with all the technology inside the transportation industry lately, if ones are not skilled within business management ones may suffer greatly. Positive income on time is a must in the trucking business. Trucking industry has a huge turnover of operators and number one complaint is always money.
Secondary Marketing is not competitive because there are limited supplies of private investors who are willing to take risk. However, ones that are ranting about "Factoring" have not been told via ones who are in my business upfront accuracy.
My business is like PMS, it comes and goes in cycles, but one must watch these cycles or lose out, same as you all best watch the upcoming letters "PR". Ones must learn to "Think outside the box" to be successful in trucking. Factoring as with any investment is long term, not a one time deal; saying that, no investor (like me) would buy just one invoice because costs involved in the transfer. First you must have a steady customer base, ones you haul to regularly, these same ones who pay regularly over time. "Over time" it's within norm limits to be 45 to 60 days out getting your money from a delivered. Now if you're leased to a large carrier, forget it. Factoring is for small operations that have their own authority. Investors take care of these delays in paying you in like 3 -5 days at initial beginning. After initial period the money is your account at your disposal twice every month until agreement expires usually two (2) years. You do not pay anything upfront, but when an invoice pays that month then the investor will take out his fee or "yield" and pay you the reminder, this is your second payment that month. You are not held liable if consignee fails to pay. That's the risk of doing business "over time." Fees charged are close to the "PR", a/k/a Prime Rate. Not rates ones have shown in these posts. I've been in this business when I was not gray headed; now me gray headed. Whoever is quoting these rates obviously are not real investors. As of 4/1/13, PR is 3.25 with 0.75 Federal Discount; you may ask what's "Prime Rate." Prime Rate is determined by the federal fund rate, which is the rate banks charge other banks to borrow money overnight. When banks pay more to borrow, PR increases and when it costs less from The Federal Reserve then PR decreases. Difference between these two rates are normally around three points or 3%, where as the PR is always highest of these two rates.
Banks with N.A. shown after their title is abbreviation for 'National Affiliate', which are allowed to borrow from the Federal Reserve than sometimes if you're a good customer, ones can benefit borrowing from an N.A. bank verses a "state controlled bank because the discount for N.A. banks offer at Federal Discount, which is shown above. Owner operators should watch federal funds rate more so than fuel prices, federal funds are determined by supply and demand.
Factoring is cheapest way to obtain constant flow of cash for small business folks, ask any real investor.