Detention? Owner Operator leased on with company who factors??

Detention is normally paid at the same time as rate con is paid. So if they are factoring I would guess it would be paid right away. Why anyone would factor is beyond me with quick pay being an option with almost every broker.

 

I don't know if I would call that a friend if he has at leased on to him and on top of that he's factoring his money.

Typical percentage in a lease is around 25% but when you add on factoring on top of that what is that like another 10 or 15%?

I wonder what all the fees are that your friend is paying.

So all in all everything included what are they taking 35 or 40%? Maybe more?

Does this guy think that having a truck is a business or charity? Because he's not making any money with that kind of percentage.

Also, that it's probably a skimmed-off percentage so he is probably getting at least 10% or 15% less than what he originally thought that it pays. That could be as high as 30 or 40 or even 50% depending on the carrier. Yes there are plenty that are in business purely to rip people off

BTW, his "friend" probably pocketed the detention fee.

On top of that you're probably going to tell us that he has a driver in the truck and he's doing this for passive income because someone told him he can get rich this way, such an easy business, sit back and count the money...

 

Some detention pay is hard to collect, been waiting on some since August.
I know they’ll never pay it.
I ask about once a week, but they pay rate, then pay detention separately.
But I don’t factor, and i do the billing.

 

I have a few like that and try to not do any business with them unless I can rape them on the rate. Always make it up somewhere else is my thought or I won't pull a load for them.

 

Pretty much do, they don’t care.
Got a load going there tomorrow, specialty load, going to be $5.44/mile if you break the tonnage to mileage.

 

The answer to your question is: the factoring company will advance whatever amount is on the rate confirmation. If detention, layover, lumpers, etc. any accessorial is not added into the total, then no they won't advance it because it's officially not there.*

So what do you do? Two choices.

1. hold up the invoice until they send a revised rate confirmation that includes all the extras and then send it. If who you're dealing with is halfway decent, a day or two is reasonable to wait for it. Keeping in mind that the "days to pay" clock doesn't start until the customer gets an invoice. Shady brokers will delay detention approval to buy more time to pay.

2. Put the extras on your invoice as "requested" and a zero amount. Tell the factoring company what's up when you send it. They'll fund the confirmed line haul then any extras approved after the fact will come in as an overpayment, and get carried into your reserve account for later disbursement at whatever interval they use. Usually monthly. It's up to you to get that update rate confirmation, so don't expect anyone else to chase that down for you.

That said, your client isn't the one factoring invoices. If he's got a legit claim for detention/layover, and can prove check calls were made and instructions on the rate confirmation were followed, he should get paid as agreed whether the carrier can get an invoice advance, or even collect on the extras or not.

* in the case of a good (unicorn) factoring company, working with a carrier in good standing that has sufficient reserve balance to cover any short pay, and a customer that has an established track record of paying claims promptly, the factoring company may advance unconfirmed extras. Usually with at least a verbal confirmation from the customer upon receiving the invoice. This is extremely rare, though.

 

It's been said in this thread already but don't waste your money on a factoring company as a one man show. Most brokers have quickpay from 2%-4% and you should be avoiding shady ### brokers anyways.
I know a lot of youtube truckers will try and push places like thunder funding, Triumph, or others but they get massive kickbacks for those referrals.
You'll also be in for a massive headache when you realize you're getting screwed and try and get away from those places. Most of the time it's just not worth it.

 

At Landstarve we don't collect our DETENTION ( Always moist and delicious ) until Landstarve is paid for that load.