Factoring/New Authority

Good luck getting into any business and getting paid upon demand. This is why credit will never ever be eliminated, even if every debt in the world were extinguished.
This is why having a cash reserve is so important, " time IS money" Benjamin Franklin.
70% of Americans have less than a grand put away. If you top that you are doing better than most. Ever stood behind the clown cashing a Western Union at the Flying J when you have a hot load to drop. I know you have.
Factoring companies serve a purpose, but it is obviously better if you can not use one.
A big problem is undoing all the paper work with the broker or shipper once you can service your own money loop.

 

When I started on my own. I had enough money to pay for fuel my first trip.
Bought the truck, zero down. Seller financed my purchase
.
I had unique experience, I leased on to the man that financed my truck. He had total control of my income. After 6 months I got my own authority and went on my own.( Company I was leased to was closing its doors).
Truck was paid off and after start up costs I had enough fuel money for a couple trips. My newly acquired customers paid upon delivery. It was indeed unique.
But don't we all have a unique situation.
I agree with most of what you say. It would have helped me with more business experience. How else do you get it unless "you get it"

I don't feel the Government should have any say whether I or anyone decides to start a business, flipping burgers or delivery service.

I have several customers that pay upon delivery. I have one customer that pays in advance, either when I get loaded or they pay for 3-4 loads in advance. Usually the last trip of the season is paid after I'm done. This trip is usually a random extra miles than normal run, picking up partials and pieces from various sites to finish the season.
Good luck.

 

....and that's why I did not go with them.

I was watching from a far to see if you will catch that...

 

I think you will do much better, making it happen without factoring. You would be surprised how dependent you get using a factoring company.

Imagine factoring for 10 years with 20 new brokers/customers each year. $10,000 wow.
Good luck.

 

Question again: when you fill a carrier packet, what do you put for references if there’s a reference section? Other brokerages / customers ? Seems kind of odd letting your customers know who else you do business with...

 

is it weird when an electrician lets you know who his other customers are?

 

Hmm I guess not...

 

Don't use factoring companies.

When you bill the brokers, make sure you bill them net 30, with 5% added at 30 days, and another 5% after each subsequent 30 days. File against their broker bond after 32 days without payment.

 

The way to fix Coyote is to bill them net 30, 5% fee per month after 30 days. File on their bond after 32 days without payment.

 

Sometimes they ask for 3-5 references when you do a new set up.If so, I just give them 3-5 brokers I hauled for before with a contact name - I don't even think there is need to call them and ask for permission. In my packet, I don't include a list like that.