Factoring Companies That You Recommend For Owner Operators?

If you used your credit card for 100$ and paid it off 1 month later. Bank charges you 2$ interest. That's means that the APR is 24%. Not 2%.

So your customer returning the money to your factoring company after one month not after a year!

Multiple factoring rate by 12 (11 in worse case) and if you can get money cheaper then get it.

 

Some of you people honestly have not got a clue how factoring works. First off you’re not paying an APR you pay a flat fee for the service. OTR for me is .03% if you factor $1000 you pay $30 for the service of having $970 put into your account the same day or the next depending on what time that you send in the invoice. I love how some of you act like 30-45 days is normal for getting paid if you bill a customer direct. I’ve got direct customers that will let you wait 90-120 days. I only factor brokered freight on my end. Getting my money the next day plus unlimited credit checks on anyone that I do business with is well worth the .03% that I pay for the service. I’m a one truck operation. They’ve told me that if I decide to grow that they would cut that rate down to get my business. Once again it is a flat rate not an APR like some on here have suggested.

 

I can say the same about my credit card.
It's not 36% APR it's a 3% monthly fee.

 

I’m an o/o, using factoring and don’t get why everyone hates it.
It’s not necessary but convenient. Yes you paying fees but it’s much easier to track your invoices (at least for me). Also they check brokers for you making it easier. When it’s non-recoursing factoring you will get paid no matter what. But if in 30-60 days your broker will refuse to pay what you gonna do?

 

Btw if you do over $250k monthly, the factoring rate is only 1%.