If it is a choice... which is the choice I don't understand. I better understand long hoods, chrome and 75 + mph on an open road.
I also understand some useful aspects or factoring but if someone has enough funds in checking account and still factors, that part I don't. Paperwork and invoicing with relation to a solo o/o as the only reason is too lame imo. It does not take that much effort, understanding, time nor discomfort . I do understand, however, that in different life situations having 15K-20K in the bank may not be such an obvious thing but then this is not a choice. As I said earlier, in case brokers take longer to pay than 30-60 days, or the brokers are known for practicing targeted delays then the factoring makes more sense too.
Factoring Companies-worth it?
Discussion in 'Ask An Owner Operator' started by chrissan, Jun 24, 2021.
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God prefers Diesels and dztruck Thank this.
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I'm on my second year factoring with Loves and it's worth it to me for them to deal with all of the BS that neither myself or my wife currently have time for.
In the future, maybe I'll rethink it but for now it's a great help for us. -
xsetra and God prefers Diesels Thank this.
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No recourse factoring for %2.99? After you factor a customer can you stop factoring that customer?
My guess is they can still come after you if they don’t pay? No recourse factoring is usual 2x as expensive.Siinman and God prefers Diesels Thank this. -
It's also "rainy day factoring". Meaning they have no access to your AP, and you can factor loads as you see fit. I spent over an hour on the phone grilling the rep before I decided to dip my toes in the water. Even then, I took a local short load, and even took a fuel advance on that load just to see how it all worked.
Now they do charge $500 to break the contract. But that goes away after you factor $20k in loads. I asked what happens if instead of terminating the contract, I just never use them again. They said nothing happens. But after so many months, if you decide to factor a load, they might need updated info from you.
Not gonna lie, I couldn't find a downside. Because in the end, I was pulling freight I never would have touched before, because of them. I still work with my "normal" brokers as I always have. But they really open up opportunities. If I looked at a brokers pay trend, and there was so much a "blip" away from normal, I'd be too paranoid to haul for them. Truckstop.com takes that paranoia away, because it's not my problem anymore. I threw everything bad I knew about factoring at them, and they answered every question. In the end, I was satisfied, and it's actually paid off.
Look at Meadowlark as an example. They have some really good paying loads now and then. Right now, they're a pretty rock-solid 30 days to pay. But not too long ago, they were dipping into 45 days if my memory serves me. So no way in Hell would I chance them. Since Truckstop.com, I've hauled two loads for them and it all went off without a hitch. Long miles and almost four bucks a mile that I would have missed out on because I didn't trust them.
I look at Truckstop factoring as just another tool in my toolbox.xsetra Thanks this. -
Brokers that are late on the payment, I file on the bond. Takes 10- 30 minutes its easy and I get paid quick.
I understand the reasons people have to use Factoring. I factored several years ago. It just wasn't worth the price when I look back. At the time I thought it was.
I guess the more tools one has the better. Factoring is a shovel that may help a business dig a deeper hole. -
What you do reccommend for factoring now? I am thinking about truckstop, can you advise? Thank you -
I don't factor and never have. I was set up with Truckstop.com factoring in case I should have but it never came as needed so I can't tell you how well they are in practice. I choose them because they contract agreement was plain and simple. I think it was 2.75% and non recourse, no escrow, no minimum, no need to surrender all of your customers/brokers, there was some termination fee but I technically never terminated with them - because I never used them and due to inactivity they suspended my account after 3 or 6 months. If I were to factor for real, I would go with them or consider Triumph - as long as it is still working with DAT load board.
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