Factoring Companies

Cash flow is most critical for all trucking companies and whether this is through self capitalization, a line of credit, quick pay programs, or factoring it allows the carrier to operate their business. For most carriers, the luxury of self capitalization or even a line of credit is not available and so their wealth is built through the hard work they put into the operation and their cash flow is provided by other means such as quick pay or factoring. I will not deny the fact, I am involved in a factoring operation, but I am not here to endorse my company nor mention it's name. I am hear to educate the value behind the product and attest that many successful carriers have factored and have grown very successful operations. A testimonial example is a carrier that started up about 15 years ago with their first load for $500.00. They needed cash flow and chose to factor. Their goal was to find higher paying freight that the factor would purchase on a non recourse basis and assume the credit risk. Over the years, they grew their fleet from 1 truck to 10 trucks while factoring their accounts. The carrier, while still trucking then opened a brokerage division. They however did not need to factor this part of the business, because of improved cash flow. Today, they operate a smaller trucking business and still factor this portion of the business mainly to outsource credit and A/R management. They then concentrate their efforts on the larger freight broker portion of their business and even offer a quick pay program to the carriers.

 

I wasn't trying to offend anyone,however,I have been there and done that. I only used factoring as a TEMPORARY means of cash flow. IF after a few months I was still needing to factor to get cash flow than I was doing something WRONG. If you are netting a profit,even a small one,you should be able to eventually put enough reserves aside to not depend on factors anymore. It feels much better to collect ALL of my money than shell out 8-10k a year on a 3rd party billing company. Fortunately I had very little operations in the northeast and the majority of my freight is over 1100 miles.

 

I use TBS in Oklahoma City,Ok. From what I have read here, I think my deal is even better now. They offer 40% advance with a faxed BOL and confirmation. I have a 5% NO- recourse deal. They offer a $13.00 Fedex and my money is on my EFS fuel card by the end of the day that they recieve the original BOL. I think they charge $3 to put it on your card, They do charge $20.00 of you have to use the advance. I have had to use it once or twice and it was great knowing that I could get that good load and have money to get it done with. I don't always take the advance. TBS and EFS have been great to work with they both treat me great. Also having an EFS fuel card saves me money too. I always get cash price or up to 2 cents per gallon discount at the right place.I have also saved 10-12 cpg by checking current fuel prices with EFS. Money in the bank as far as I'm cocerned.

 

I am with freight check and I don't recommend you go with them. They are great when you start but when you want to leave, they become mean and nasty. Putting you on hold for long periods of time. The boss (mike) in meetings and not calling you back. He will tell you he will take care of it in two days and four days later nothing. Just wanted to let you know. Johnny in Ga.

 

Anyone had any experience with abc factoring? I see them on the 3sixty load board.

 

D&S factors takes a strait 5% non recourse as long as the customer/broker is approved...... , depending on your bank it will be in the same day or the next morning at opening, they give you free tripak envelopes which are 90% overnight sometimes 2 days and they will direct depost into your acct same day at a rate of $1 whether you have 1 bill or 20 bills still a buck....... each bill must be in a separate envelope......no big contract ........factor only the bills you want to

 

DONT CHOOSE FREIGHT CAPITAL out of CA. STAY AWAY FROM THEM. unhappy customer of FREIGHT CAPITAL. DONT USE THEM NO MATTER WHAT!

 

Non-recourse isn't what you think it is.





If your 100% protected under non-recourse then why do you have to put up all your assets as collateral?

 

Is anbody use pay4freight.com ?
They offer invoice by fax.
Non Recouse.
30 days contract.
$5.00 direct deposit

I think they are looks good for me.
If you have any opnion, please let me know.

Thank you very much.

 

This is what i have to ask i never do loads for people i dont no or brokers i have been stuck with POL that i was never paid for over $7,000 all togather i was going to get set up with a factoring co were i would be sure i would get something but after looking at all the paper work thay have Im not about to do it