Factoring Company: which are you using? Who offers the best terms?

Best advice I can give as a professional business person is.......


DON'T FACTOR!!

If you can, Please use your own capital. Depending on the size of your company,If you choose to Factor, You can stand to Lose significant amounts of $$$ per year

 

Exactly! Just think for every $10k in revenue, which is fairly easy in a month, it'll cost you at least $500. What could you do with that $500?

 

1 truck is looking at a minimum of $6k to 10k per year in factoring fees..........Not a sensible business solution

Only time factoring is viable is for a large 100 plus truck company where the COO or president cant handle funding their operation because they are patientless and put their profits in front of their costs to operate

 

Don't factor. Once you start, you'll never be able to stop. Not to mention the horror stories out there. They will always find a way to screw you, heard it from lots of friends.

 

I'm another one that is against factoring, or quick pay. But if you have to do something, do quick pay on SOME of your invoices to keep a positive cash flow.

With factoring alot of them from understanding have contracts that are hard to get out of once you are in a better position and no longer need them.

 

I am pro factoring. I got two trucks and a buddy of mine is about to lease on me two more. If I had another 100k of working capital I would buy two more trucks and still factor. Let's say you got 10 trucks, so you need another 150k cash in working capital, why not buy more trucks and make more money? My factoring fee is 2.75% right now and it goes down with the volume. 100k monthly volume is 2%, 500k volume is 1%. They do invoicing, they do credit check better than I would, they provide you with working capital, which allows you to grow faster.
It's the same as buying a house, you can save up and get it for cash, or get it now and pay interest on it.
It's just not easy to find a great factoring company,a lot of them do try to screw you over

 

Just run on Credit Cards for a bit if you need to. You'll still be far ahead. You won't spend more than 10k a month to run a truck. Right now its more like 5k-7,500 with fuel down and a slow market. Most loads pay within 30-45 days tops. If you can't get a 10k credit limit you probably can't afford a truck anyways. Get a 10k credit card with an introductory offer of no Interest for the first year. Theirs tons of em. They spam me with offers all the time.