Broker going out of business

Op do this today. Also call shipper and receiver about getting paid.

Good luck.

 

Lol I have been using factoring since I started 8 years ago with 3 trucks and still hanging over here. Have 1.75% rate. Couple people I know with over 20 trucks have 1% rate and have been in business over 15 years.

 

And a LOC is only 10% of that.

 

Yeah, when you are already established. When you are starting out nobody is gonna give you any money.
Also factoring has some other advantages. For example I manage 3 trucks and still drive myself. I also do small repairs when I can. I am literally so busy with work and kids, that when I tried going without factoring (my factoring allows to pick and choose what brokers I want to factor), I kept forgetting about sending some invoices and then following up when checks were not coming on time.
Factoring keeps it nice and organized, they constantly follow up with payments and like I said earlier, have very good credit checks. The factoring fees are tax deductible and it wouldn't cost me any less to hire somebody to help with paperwork.
If I was just by myself or had more work coming from one source, I would probably go without factoring, but right now doing spot market it works well for me

 

And you're borrowing the same 30-40 days worth of money over and over again. Just never understood giving away more money than necessary.

 

Seems like you made up your mind about it, got stuck at one thing and did not notice the other things I said. From the money interest standpoint yes, you are giving money away, but if you look at it as a service, kinda like hired labor, then it's a bit different

 

If you added up what it actually costs you, bet you could pay (your wife) a part time worker that much and keep it in house for her to invoice everybody and keep track of records and run credit.


Lots of ways to make money: paying a stranger to do a task for you makes sense if it’s cheaper /more effective than doing it yourself: If there is an added value to a service it can be worth more than if you can do it yourself cheaper. That said, keeping red in check and black growing is the basic premise of business.
^that’s why corporate ideology is always looking to push rates for trucking down (and everything else, but trucking is topical)
-it’s just a line item on a p&l sheet. Lower the c.o.g.s and get the most revenue you can for said goods.

 

No, I just ignored the "3 trucks and drove" part. Ran 13 trucks and drove (before cellphones). No reason today with internet/phones, ect to think that it's
too much work to do.
Also ignored the "nobody will give you any money" That sounds like a no cash/no credit situation.

 

Yeah, I brought it up few times for her to do that, but she does her own work and really is not interested to do my paperwork. My oldest just turned 12, maybe I will make her help out.

I don't remember the exact numbers, but I think in 2021 on almost 900k in invoices, the factoring fees were about $14k. Yeah, it's about $1k per month I can keep in the family, but considering how they saved me from working with someone I shouldn't have, that number is not that high actually.
Like for example my friend (who does not factor )with 9 trucks has lost $20k just this year from bad brokers, yet since 2015 I lost only $800 in unpaid invoices.

 

You are smarter than the average bear. You dodged a bullet! Too bad lots of people would rather live with debt up to their necks. Like hamsters on a wheel making more money for others than they do for themselves.