Do not do loads for IGH Logistics

I don't want the headache of sending in the paperwork and waiting to get paid etc. Plus the reasons as stated above. Factoring really costs nothing because of the write off. I do not use Loves fuel program.

Be Safe Out There


Captain Dave

 

Write off or not- Lets do some arithmetic..

50 weeks times average weekly gross receivables of $4000= 200,000 buckaroonies

Average factor of 4% (3-5% is norm)
$8.000 per year in factoring fees if my math is right........Hmmm, That's approx. 2 weeks per year you worked for free paying a Factor-... That 8k is an Inframe on your Motor.

Food for thought.

 

Very true. But let's look at that $8,000.00. I do some very expensive paying loads. If say 3 people (loads) don't pay me.... Well there's 8,000.00 plus the loss of time and fuel of doing the lost or non pay load. It works very well for me, and I will go on record saying if there approved list there seems to be less bs with the broker(s). I also don't have anyone at home that would file all the paperwork etc. My girl is hands off.


Be Safe Out There



Captain Dave

 

I Could see that part about not trusting a girlfriend/Spouse ..Why can';t you Bill? Its Easy..I Do It.

Now If you have several trucks...I see the need for staff help. But a 1 truck Show- Piece of Cake- I Find time to Drive- Billing-Maintenance- and Time for Family.

Anyway- if what you do works- Excellent- I Never cared for Factoring as a useful tool.

 

Two observations:

1) If anyone thinks that any decently priced factor (NOT 4%) would have lent IGH Logistics money you're in for a rude surprise. Factoring companies refuse to lend all the time.

2) 4% is VERY high. My company has been advertising 2.9% for over a year and I'm reasonably confident that we aren't competitive at that rate. I'd be surprised to hear the market rate was higher than 2.5%.

Non recourse factoring really isn't worth it. Get a reputable factoring company that has tight credit requirements and book loads with credit worth brokerages. Or if you have the credit get a credit line from a bank and only do business with credit worthy brokerages. There isn't any % in working with people who might not pay us. I won't work with customers who show me any meaningful credit risk at all and neither should any of you.

 

I'm sure I could do better but I like there program. It work for me and I know for sure they got money lots and lots of money. I do charge brokers for any tracking put on my cell phone (50.00 per load) and I charge a trailer fee $20.00 which goes towards washouts. Some cry but they pay as they know it's a fair price.


Be Safe Out There


Captain Dave