loves Factoring

Try to steer away from factoring if at all possible.

 

+1

Factoring is for people who like to give their hard earned money to others. Take the percentage a factoring company charges you per invoice and add that up over a year. It costs you thousands all because you can't wait a month to get paid. It is a super profitable business and borderline predatory. Why do you think when you set up your authority you get dozens of calls from factoring companies?

I am not sure of all the regulations involved but I bet if I took the cash it costs to buy a new truck and trailer and just used that to factor invoices for others I could probably make more than I could driving the truck.

 

Factoring is not a bad idea if you are trying to get your cash back up after major expenses to get your own authority and equipment. after a few months cut them off just dont sign a year contract or anything longterm

 

Factoring is almost always a bad idea. If you are in business you had better be a good money manager. It is far less costly to use lines of credit for major expenses than it is to factor. Factoring should be a last resort only.

 

its a bad idea if you got big money to wait 30, 60 days to be paid. i see you BOSS

 

The amount you have in a/r doesn't matter ... it's still a bad idea... if you need 10,000 to keep operating it take it from your line of credit at like 4% and pay 33.33 in interest for the month rather than give up 3% of 10,000 which is $300. Save $266.67 just for month 1.

So how is factoring a good idea again?

 

Lol nobody answered the original ? Its hard to say if factoring is good or bad for someone without knowing all the details of their operation. As far as loves factoring. I looked at what they have to offer and I think it is better factoring companies you could go with unless you fuel at loves? I use oak hill capital. Just compare what a couple of the factoring companies have to offer and a few things you should pay attention to: recourse or nonrecourse, ach fee, contract or agreement, how paper work is submitted.....just my penny worth

 

I hate giving my money away. A couple folks I work for only will pay with Amrican Express. I hate giving away that 2 and 3/4% but that is the only way I can get them to pay me. I know that it sucks sometimes waiting on that check, but when it comes it is all yours. Plus I don't want a bunch of people I don't even know, knowing my rates and who I work for. You can't tell me there hasn't been some shady dealings with big brokers paying some clerk at a factoring agency to look at the books.

 

It might not be for everybody, depending on your needs and expectations a factoring company can actually be a great partner not only on your daily operation and increase of your cash flow but also help you grow your business