factoring companies

I'll not recommend to use any. The best way is open new credit card with 1 year APR free promotion.
All factoring companies will create a lot of troubles when you ready to quit them.

 

I DON'T mean to be rude or condescending, but if you need to use a factoring company when you're starting up, you really shouldn't be going out on your own.

Sorry, just telling it like it is.

 

P.S.
Don't even worry about factoring.

Where are you going to park the truck?

Yes, I AM your mother.

 

Have you signed on with anyone?

 

I'd disagree with a lot of the negativity regarding factoring companies replied. The vast majority of new O/O's are not able to wait out the industry average 42 day pay terms and in this case, factoring is a great tool to use. Of course, once you become financially stable and are able to afford waiting out the net 30 pay terms, factoring is no longer needed. The biggest benefit to factoring is that it keeps O/O's from taking quick pay from brokers. Quick pay is similar to factoring in the sense that it gets you paid faster for your work (typically 24-48 hrs for quick pay) it differs in the fact that when you opt to use it, you are negotiating how fast you get paid instead of how much you get paid. Any broker or debtor has a competing interest with you. They want you to haul a load for as low as you are willing to move it for and you want to move it for as high as you can move it for. When they see you taking quick pay's, they will drop the load value 15-20 percent right off the bat (if not even more than that.) By using factoring, it allows you to negotiate how much you get paid instead of how fast you get paid keeping the load value high on the front end. Then, when you drop off the load, the factoring company will advance the money from the load to you within the same day (or next day depending on the factoring company) and then collect on the invoice for you on the previously set standard pay terms. Basically, if you have a need for factoring, which doesn't say anything negative about you, your business, or your plan, it will help you to get paid out higher and faster too. I wish you the best of luck man, congrats on the new authority!

 

Sorry to disagree, but i feel you should have 6 months operating expenses tucked away before even considering getting your own truck.

And again, let's not even worry about that. Where are you going to park the truck? That is the first and foremost question before doing anything.

If you have to use factoring you don't have any business getting a truck. Let's do things the right way and not J.O.

 

No worries man there is definitely no one right way to do things. I've seen people have success in this industry in a number of ways. Of course if you are able to save up 6 months of operating expenses (after including the cost of applying for the authority and the insurance down payment) that would be ideal. The simple reality though is that not many people starting out as owner operators under their own authority have the ability to do this. That doesn't make them less than or dumb, it just means that everyone is in a different place financially. My whole point is that while factoring is definitely not for everyone (like if you can wait out net 30 pay terms without having anyone take an additional percentage off the top of your loads for advancing the money to you) it is still a good tool to use for many owner operators getting set up under their authorities