Factoring companies: which are good? What to look out for?

I get paid, what I get paid. In fact the percentage Prime takes for front office operations costs is less than what Landstar takes. But I'm not financing my receivables at 60% per annum either.

You get paid what you get paid... I don't see anyone complaining about what you make.

 

But by leasing on to that company your doing much the same thing you were just saying was so bad? You let them handle your dispatching in exchange for a percentage? It's just on the front side not your receivables side?? I'd bet their percentage is a lot higher than 60% APR?

 

Lower. I'd bet your broker takes more than what Prime does too. At least all the biotching about brokers leads me to believe they take 99% and leave the crumbs for the driver.

 

Can't be much lower and to me it's hard to believe prime takes less than 5% of loads for their office services. But to each their own, it's a good thing your happy where you are as there are many that aren't. To some factoring and quick pay make sense to others it doesn't.

 

Actually being here and talking to folks tells me its the other way around.

 

I wasn't talking about within prime inc. I'm talking in general and others leased to other companies etc.

 

Mea culpa.

 

I have a few questions for the factoring guys.

1. Does your company have any "holdback"? Do you hold any percentage of the carrier's revenue for a period of time? Several factoring companies I have seen hold back as much as 15% of the carrier's revenue for a period of time or until the carrier has a revolving account balance to equal the holdback amount. So, do you pay 100% of the revenue less your fee or do you hold a reserve?
2. Do any of you deduct bad debt from future carrier revenue or the holdback amount if the customer doesn't remit payment in a certain period of time? Do you also still charge your factoring fee on top of the bad debt? Do you ultimately hold the carrier responsible for 100% of the revenue and not the customer?
3. Do any of you have a P&L target of less than 14% per annum corporate? Is your total overhead less than 3%? (national payroll targets alone are 32% and considered well managed so that would mean you supply an office, phones, insurance, employees, benefits, advertising...and etc and still manage to operate at 3-4%)

Just curious.

 

1. No holdback, no reserve, no recourse..full 96% funding. Broker goes out of business...that's on us not u...

2. No growing percentage rates or sliding scale. No matter what it takes us to get paid you remain on your 4%. Offer fuel advances 7 days a week on com check or fuel card. pay on copies on same day or next day payments for completed loads.

3. My company offers me the best benefits I've ever had (fully paid) , office, phones, many company events, lunches,trips etc.

 

I must be the dumbest business person on earth, How do you do that on 4%.