Billing direct / account receivables

I was under the impression places like CHR database and build a profile of the carrier to be pulled up by the broker. Being a new entrant I expect to be using them quite often. I do like the quick pay option best, just hate to seem like I'm hurting for cash when I'm not. It's all about that piece of mind to not have to keep track of receivables and know I've been paid for my services.

 

So we should use them? Come on what's the skinny on this? Why do you have to write long paragraphs?

 

no,5 % total,and out of it goes 2.9 to the factoring company,then they keep a few bucks more for invoice handling,1 buck per invoice and I get whats left,usually 1 % plus the original 95%

 

Tracking receivables for a one man operation isn't that hard. You still have to reconcile the receivable in your business checking account whether you factor, quickpay or extend credit to the shipper/broker and wait 30 to 45 days for your money.

I use Quickbooks Pro for my accounting, yet still use Freshbooks for my invoicing because I like their platform. Yes, it does cost me an extra couple of hundred bucks a year, but it's worth it to me.

 

Cash flow, or lack thereof, is obviously the number one thing that sinks businesses.

My .02 cents would be to try and set up a personal LOC if you can. Most credit unions will extend you such as a member (with good credit score) for around 8% APR right now. If you need a temporary cash bridge, that's a heck of lot cheaper than paying 4% to 6% of the gross revenue for quickpay or factoring fees.

I believe CHROB charges 2% quickpay and 1.5% if you do a certain amount of business with them.

Others like Werner Logistics & JB Hunt offer 1.5% quickpay.

The goal (in my opinion) is to get to the point where it's not necessary to borrow any money for normal operations costs.

 

Sure but if can get my money ASAP (whether I need it or not), not have to worry about getting paid and/or ditch the hassle of tracking down my revenue then the small 5 percent just might be worth it.

 

The LOC is a good idea for those who need the working capital to operate but the quick pay is a "tell" to the broker that you might be in need of cash so they can use that as leverage during negotiations.

 

It's your money, not mine However, if on $200,000 worth of revenue a year you're willing to give up $10,000, more power to you. Not me.

Besides, most factoring companies will come after you if they get stiffed anyways...

 

Are you an owner operator now?

 

Yes, I agree and I'm an O/O now. It's my second year in business. Looking to get my own numbers in May/June. It seems factoring and quick pay both have their own unique pros and cons associated with them. 10k is still cheaper than hiring an employee to handle my receivables though.