Factoring/New Authority

I would like to pass some information and experience onto any drivers thinking of obtaining their own authority and using factoring companies.

Firstly, if you start out with your own truck and use factoring, you may run across many issues as I did; in that they promise next day pay and that is hardly the case -my experience. They find issues with almost every BOL submitted and often just tell you they are having trouble with the broker paying. Bills are always not clear enough-submit or fax another, and another, and sometimes I was asked to send in originals. I did this priority mail and they claim they did receive them and I was to track them. Or, they claim they have not checked mail today etc and every other excuse not to pay on time. I was not paid on a couple bills and put off by one factor time and time again only to call the broker myself and find that they paid, but I was not paid. So, point is; you may have many problems getting your money paid to you.

Secondly, if you don't use factoring, some companies will not pay up to 6 weeks after you deliver the load. LANDSTAR for me is one of them that finds every excuse in the book not to pay. I call them and call them and the check is to be sent out Monday, but by Friday it is not here. I call again and the load number for the check that was to be mailed 5 days ago is not in their database-they cannot cross reference your BOL, or your MC, or your company name, or shipper or receiver to locate the load. That's my experience with them when we send in a clean BOL the day the load was delivered. (I am sure those leased directly to Landstar and other trucking company brokerages get paid timely-good). Five other brokers have not paid after 5 weeks, one does not have any record of our paperwork and the list of issues with brokers and factors goes on.

Thirdly, if you use OOIDA insurance, you may find 20-30 large brokers/trucking company brokerages that will not use you. I was given a list by OOIDA Insurance of brokers whom I would have trouble with and yes, Landstar was on the list also, but Landstar said they could use me for 45 days and that's all due to my insurance (even though I carried the required 100,000/1 million). But these companies, in my opinion, probably had disputed claims by OOIDA and thus, its a way for them to get back at OOIDA.

Lastly, if you have new authority it is often difficult to broker loads because " you have new authority". That is a new absurdity in trucking today. I had driven over 5 million miles with 34 years of safe driving only to be told you cannot have a load because your authority is new. Now, take Swift, England, etc. that have an old authority and they get the load even though the driver may only have 3-6 months experience. That is a new scam that has no standing at all and drives-out new, smaller operation companies or independent operators. I understand that many drivers/Owner Operators may say they never had these issues, and good for them/you. But want to convey this to people who may be thinking of going independent. And, have plenty of cash to fall back on/work with until you are up and running and firmly established.