Factoring, Brokers, Dispatchers and Loadboards

Regarding factoring. Don't do it. If you need cash flow use local bank credit or other source but no factoring.
Here is why.
Factoring bank will pay your invoice then 30 - 45 days later broker underpay your invoice to factoring bank. Bank will silently withdraw money from your account or from your next invoice. You say, well i will call broker AP and ask them. You are out from this equation. Broker have contract directly with your factoring bank.
Finally you realized how factoring is bad and terminate contract, now be ready for surprise. Because brokers AP signed contract with factor bank they will not pay you without release letter directly from factoring bank. But you now not factoring bank customer, nobody in factoring bank cares what you need.
Remember cheese in trap is to catch not to feed.

 

There there is a lot of truth in what this man has said. For example what would the APR on factoring all loads at 3%? What would you finance at that APR?

 

At my last company I did flatbed regional in the midwest. We used OTR Consulting out of Atlanta for dispatch. I worked with Joel. I averaged anywhere between $5-7k gross and home every weekend, sometimes during the week as well. If you can find a good dispatcher I definitely think they are worth it.

 

Lawsuit against who? Factoring company paid you all money they got from broker. Broker says they pay factoring company in full. Mostly they underpay lumper fee. Would you pay lawyer $2,000 to retrieve $200? Would you pay money lawyer to force factoring company to send termination letter to all your customers you was working thru factoring?
Shady not companies shady some individuals in any company.

 

Both your posts here sound like solid advice. I just wish there was a decoder ring in this box of cereal...

 

Some of these guys are straight up fear mongers.... Some of the stuff these guys come up with makes you wonder who they did business with or if it was just sone random truck driver in Idaho who's cousins brother had a bad day.... I mean ffs.. you have contracts, ratecons for a reason...l