Problems getting load picked up because of Factoring

If you have the money to pay for the loads up front factoring is probably an unnecessary expense. A comcheck is a way to send money just like a cashier's check/money order...it's guaranteed money...no chance it will bounce. You should get your credit information up on DAT or other load boards that your using. I only extend credit to people or businesses with an excellent credit rating. Anything less than excellent credit I immediately insist on payment terms that I find satisfactory or I will turn down the load.

 

And the factoring companies won't accept payment up front?

 

You'll just have to suck it up as part of being new with no established business. Factoring won't really help you. I think you're already on the right track with quick pay and a substantial advance to get their attention. Contact Comdata about setting up an account. It's cash based. you wire money in from your bank (deposit) then issue express codes to make payments. The recipient can cash it at a truck stop, or write the express code on a Comchek (basically works like a do-it-yourself money order) and deposit it. If they also have a Comdata account, I believe you could also pay direct from your account to theirs. Mind the fees. There's a fee for everything.

I've done one load like this and it went ok. Broker credit was weak and my factoring company declined. They offered 50% advance and the balance on delivery, so I accepted. Actually passed on the advance since it was an established company (20+ yrs) that had a run of claims. The credit report validated the story and I saved the fee. I got an express code for payment in full and registered it before the product came off. It went fine.

Frankly, if someone still won't haul for you when offered COD and maybe an advance, you're probably better off without that one.

 

Dang...

Thought this thread was about algebra.

Dissatisfied.

 

I'd be happy to haul for you if you pay as described above, 50% when loaded and the balance before the product comes off the truck.

 

Back up a second, not everyone works on percentage and you have a contract with the carrier and not the driver. The least of your issues is going to be credit if you start violating the trust of the carrier.

You need to start working with all the major factoring companies. If you are going to pay upfront, call the factoring companies and get a small line. Then pay with ACH or Comcheck as soon as the load is invoiced. They will love you and you will build usable credit fast. We did this when I had my company and I know a couple accounts that the factoring company got the money from us the day they sent it to the carrier. What is the APR on 5% for money loaned for zero days?

 

I feel your pain. I had to try to move loads when I started working with a carrier with 100 trucks and excellent credit but when starting their brokerage dept. nobody would move for me either. I contacted Internet Truckstop and Transcredit.com for DAT and sent them 5 carrier references to establish credit. Took about a month as they contact the references for a fax to verify and some were slow in responding. That's all it took, some time, some calls, some faxes, a lot of follow up. I don't know why somebody would charge $250 for updating a credit report. When I would have carriers that had to use their factoring companies I would ask for the phone numbers to contact them. Wow are they difficult to deal with and were hard to convince to trust me. I would go back to the carrier and pay comcheck 3.5% discount and pay within an hour of receiving the BOL and their invoice. Then use them to add to your credit references and it really brings down your Days To Pay number. You said you have carriers that worked for you in the past it should help your efforts. Voice (904) 725-2239 ext 2302 This is the number to contact a girl named Beth who assisted me on this matter about a year ago with Transcredit who gives info to DAT. Internet Truckstop you want to speak with the Assurances Service Dept.