Factoring Companies-worth it?

I don't understand what your problem is @Kevw45. What is it that upsets you?!
Crap advice...like what's a good advice? What would you like to hear? Factoring is good? Buy a brand new truck with minimal down and then make payments of $3500 and insurance premium $2000 per month, then have no cash on hand while Load boards pay less than 2 per mile? Just a matter of time when they will.
How do people get their cash when they buy their first trucks, would be the question for you to ask. I don't know the answer. It is individual matter. Everybody's own business how they did. I had my cash, I went to Arrow Truck Sales and bought the White Volvo financed by Transport Funding at 14.99%. I paid it off 3 years earlier. Next one will not be financed through them. Neither will it be a used one. I bought a brand new trailer with a 3K down too. Almost paid off. End of story.

 

You obviously havent attended his convention nor read his book. Its standard to be successful to have done those 2 things even before getting a CDL

 

The "good" or desirable advice would be go for it...even with empty pockets, all the money in the World wait for you ... remember, you are better than all of them, you will show them how things are done. They may run for 1.5 per mile, but you ain't gonna be like that, pulling cheap freight, you know better. Show'em!

 

We were discussing factoring. Financing equipment is a different animal. Factoring is forfeiting a chunk of revenue because you don't have 15-20K reserves - that's an average monthly revenue for an o/o with a dry van. Sure, If I had to, I would factor. I have enough cash not to because I believe that truck ownership requires firm cash reserve. Financing $50K-200K worth of equipment does not compare to factoring because someone who needs to make such heavy payments already needs to have some substantial reserves of at least 3-5 payments ahead in case of being down for a month or two, thus the person has enough money in the bank which he can also use as a cash flow buffer. I would feel horrible and could not sleep at night, If I had low cash in the bank and the rest is in credit cards.

Yeah, the puzzle is how the f... you can get the money for that...to have it in the bank and let sit there, while an average American does not have more than $500.... What makes you such above the average, so superior, is what you asking?! I don't know...People work long years and save. People win a lottery. People inherit. People have already money because of their wealthy spouses. People are expelled from their former lucrative jobs and get to trucking...etc.

 

From the retrospect, I could have. The first few months.... Part of the reason was that I was leased on where they advanced money for fuel and could have offered help in case of a break down. I would have lucked out even without money in the bank. I am not sure if it should encourage anyone to start without cash in the bank.

 

Look at the progress we make being less combative. The answer is yes, you can make it.

I do factor, but I don't need to. I'm new at this game, so my opinions may change further down the road.

I've listened to o/o who cussed brokers repeatedly for 26 years, so why trust them? The ones I've found that I asked about offering quick pay, offered it at 5%, so is that better than factoring?

 

How are you gonna pay for a huge repair if u dont have money in the bank? U gonna use a credit card and now owe a credit card company instead of the truck? Plus, u do know that when ur truck is in the shop for a huge repair you’re making 0$. Actually negative because ur insurance is due. Then how do you pay rent with no money in the bank? U gonna use more credit cards to pay rent? Why about food? U gonna feed yourself on credit cards too? You have to right? according to you, you are gonna use all credit.

also, u havent broken down exactly how much ur gonna spend to start the business with, u think trucks and trailers are cheap now?

 

Spent all your money on truck and trailer, only money for fuel left, and customers load on your trailer. Break down 200 miles away from delivery needing 2k repair. How's the load gonna get there?

You're paying the cost of repairs to have it transloaded, or paying cost of repairs to deliver on time and keep on truckin.

 

Please tell me how much money you would need to start being an O/O. How much is gonna be the cost of your truck, trailer, insurance, registration, business license etc.

You’re throwing out “paid off equipment” like its the price of a hammer and nail.

 

My situation only, but my truck, trailer, authority, and insurance totaled around 62k. New trailer, well used truck.

I put another 8k into repairs on the truck, all done by me.

So I'm sitting at 70k invested.

All that I've done trying to prevent Breakdowns, and I had 3 major Breakdowns in as many weeks.

If I couldn't have afforded to fix, I'd have lost my ###.