Factoring Companies

Discussion in 'Ask An Owner Operator' started by M.Enterprises, Apr 9, 2009.

  1. JasonTheRock

    JasonTheRock Light Load Member

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    Feb 7, 2009
    Oakland, Ca.
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    I forgot to add that D & S will give you Credit Stop on internet truckstop website for free ($35/mo value) if you use them at least once a month.
     
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  3. The Chosen One

    The Chosen One Bobtail Member

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    Mar 18, 2009
    East Coast
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    True.... Compass would charge like $150 a month if i were to quit with them before the 12-month agreement
     
  4. TURKER

    TURKER Medium Load Member

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    Aug 11, 2009
    Raleigh NC
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    You my friend wrong on your formula. If you buy goods at auction that worth $1000.00 and you pay %5 that=$50.00 you had pay flat fee.Not %60 interest.
     
  5. bobobrazil

    bobobrazil Medium Load Member

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    Nov 28, 2007
    In Front Of You
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  6. MedicineMan

    MedicineMan Road Train Member

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    Jan 13, 2007
    Woodville, TX
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    it's not any better of a deal becase your desperate. The deal may be more acceptable but it's not a better deal.

    Plain and simple here. If you are in a position that you HAVE to factor, you shouldn't be in business
     
  7. stepnfetchit

    stepnfetchit Medium Load Member

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    Jun 23, 2009
    Monett MO
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    Check with your local bank. I looked into factoring companies and knew little about them. I have a banker I trust so I told him what I was thinking and he said "we'll do it for you". HUH! They have a program to help small businesses. O/O are considered a small business. They did mine for 5% and it worked well for me. They would even check credit for me. Since I only dealt with 5 brokers mine was pretty simple. I don't know the banking regulations in all states so I'm no expert here. My bank was willing to do it. It worked for me, but may not be for everybody. The thing I liked about it was I was dealing with my local bank, not someone who knew nothing about me or my business. Just a suggestion. My local bank is small (4 branch offices) and I believe Wells-Fargo has a program but somebody else mentioned in another thread that you had to do a minimum of $25,000 a month. Don't know about it. My bank never set a minimum so can't speak for all banks. Just something to check into. I would rather deal with a local bank rather than a factoring company though. I do know that.
     
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  8. High Desert Dweller

    High Desert Dweller Medium Load Member

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    Jan 29, 2009
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    Apples and Oranges. Your example is a one time cash and carry transaction.
     
  9. rbht

    rbht Heavy Load Member

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    Jan 23, 2010
    CT,NH
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    I use freight capitol for some of my invoices and bill the rest myself and the only reason i went to factoring was because so many of the customers i was hauling for went to 45 to 60 days to pay and i'am sorry i'am not going to wait 60 days for my money when all my bills are do monthly yes i lose 3.5% but IMO its worth it i dont have to touch my savings or worry about them not paying, like i said i only do it for the slower paying customers not all if they pay in 15 days or less i bill myself.
     
    Beechvtail Thanks this.
  10. XiZBiT

    XiZBiT Light Load Member

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    Dec 8, 2007
    Detroit
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    Jose,

    I have been talking to these guys for the past couple of days, they have shed a lot of light on factoring for me, but Trans AM is a signed 1 year contract, they are a recourse comapny, many fees, 10.00 ACH fee, and you are stuck with who they say you can haul for.

    I got my authority to be independent, do what I want to when I want and for who I want to. D&S seem to be the only company with out a 17 page contract and allows you to choose who you want to factor and who you want to bill directly.

    I just read a contrat from TBS, I got to the bottom of the first page and said nooooo way! The go as far as you giving up the rights to your own mail, thats right your mail, po box etc. They can open, read, redirect burn or anything they see fit with your mail.... Be very carefull and read the contract and question everything, in essance you are selling your soul to the devil with a factoring company.
     
    highwaylady Thanks this.
  11. SkopjeTruck

    SkopjeTruck Bobtail Member

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    Jun 18, 2010
    Detroit Metro, MI
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    Can anyone tell me of a good factoring company to use? I own a small trucking company with 4 trucks and I receive pay after 30 - 45 sometimes 60 days. This is way too much... I need a good factoring company but there are so many that advertise themselves and are scams. Can anyone tell me a good factoring company from experience? Thanks.
     
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