Factoring Companies-worth it?

Whether or not it's worth it to you is ultimately a decision only you can make. Personally, I despise paperwork and don't mind paying someone else to deal with it.

 

Maybe you overestimate the burden of the paperwork.
1.you fill out the invoice.
2. Email or upload it to a broker with other documents the same way as you do to your factoring.
3.wait for money if you can.
4. Of course, keep track of your invoices.

 

It''s not that it's burdensome, it's just that I don't like it. Especially #4.

 

The one possibly positive aspect of factoring is that a financially stressed broker or a broker who simply likes to play games, will less likely f. with a factoring than one truck Joe.

 

What about #5 and #6, when you don't get paid? You're wasting time and worry about collecting, or like me, pay others to.

Differing opinions. Maybe brokers are great, but I'm new to this aspect of trucking.

Do what works for you. The no worries is worth 2%, to me. Doesn't have to work for everyone else.

If you need the name of my factoring company send me a PM. They've been great so far, and came highly recommended by several customers.

Possibly try Uber Freight. I ran a load for them earlier this week. Paid in three days in full, 0%.

 

For most factoring companies, non recourse has its meaning only when a broker declares bankruptcy. If they don't pay because of a potential claim, incomplete paperwork (e.g. missing pages or signatures on BOL) or out of whim, then after 60- 80 days the factoring wants the money back from you.
I guess the non payment is the risk we all take at some degree. Therefore, it is important to know which brokers you deal with. You check their credentials, reviews, ratings etc.

 

LOC or only deal with brokers that quick pay. Factoring companies are rackets.

 

Quick pay doesn't put you in a contract you can't get out of, and quick pay doesn't get access to your accounts receivable.

As said above, there's too many brokers that offer quick pay to bother with factoring. And you should be weened off quick pay by the first year. Add more Net 30's each month, and less quick pay's, and soon you can keep all of your money. As far as paperwork goes, it's simple once you get a system in place.

 

If you use a factoring company because you don't like paperwork.
You have the same amount of paperwork factoring as you do billing direct. BOL,pod, invoice.

Same amount of time.
Send it to the shipper/ broker or to a factoring company.
Factoring cost 3% of my pay.
No thank you, I'll wait for my money.

The faster pay, yes I have used factoring for this reason. During the 2010 recession I needed some help.
In the long run it took me 3 years to get off the factoring. I found a customer that paid COD and used brokers that paid quick, within 14 days. The most expensive year cost me $12,000.00 in factoring fees.

Did they help:
short term, yes.
Long term: cost was bearable and probably a better outcome than if I hadn't used them.

Good luck

 

Name the part of my post that isn't true. A single part.