Factoring...

Discussion in 'Ask An Owner Operator' started by Blackhorse77, Mar 26, 2020.

  1. Blackhorse77

    Blackhorse77 Light Load Member

    264
    132
    Feb 29, 2020
    0
    If you use factoring, do they charge a late payment after 60 days? And if they do, what is it? And if the factoring institution is not funded by the broker, do they go back to your checking account to withdraw money after 60 days? What kind of exclusions are you aware of? What does your recourse fee include?

    I was told that if someone files for bankruptcy, I am covered. But if the broker just simply not pay for the load, the factoring will go pack to my business account to take money back.

    What’s your experience with it?
     
  2. Blackhorse77

    Blackhorse77 Light Load Member

    264
    132
    Feb 29, 2020
    0
    Hi all!

    After I said I want to leave yesterday because they were not clear on parts of their agreement, somehow they changed manually the amount I entered for the invoice. I remember when I was entering manually the lumper fee. And that I submitted the correct amount. They made a three way call to the broker saying I manually entered the wrong amount. I couldn’t believe what I was hearing.

    They are the only ones who can modify amounts entered.
     
  3. Blackhorse77

    Blackhorse77 Light Load Member

    264
    132
    Feb 29, 2020
    0
    Now, I see my mistake. It not only wastes money BUT TIME. Instead of sending everything directly, now I have to go through third party, BACK and FORWARD. And many brokers expedite payments for a small percentage even lower than factoring and without charge for the wire.
     
    Last edited: Mar 28, 2020
  4. danny23tx

    danny23tx Road Train Member

    1,042
    1,267
    Feb 16, 2016
    0
    Yup , many larger brokerages will pay you for a small 2 or 3 % fee and some will pay you early for free . Been out here 4 yrs under my own Authority never not been paid .
     
    Blackhorse77 Thanks this.
  5. roadmap65

    roadmap65 Light Load Member

    275
    283
    Feb 26, 2015
    0
    Of your just one truck why would you factor? Why give away $10,000 a year
     
    PE_T, Deadwood, Deere hunter and 2 others Thank this.
  6. Blackhorse77

    Blackhorse77 Light Load Member

    264
    132
    Feb 29, 2020
    0
    I started this whole process because my husband told me it is better that way. His brother told him to use factoring services. So, I followed his advice. Huge mistake! I shouldn’t have listened to him. I am handling the paperwork at home. And it actually eat up more of my time. And it is confusing more to the broker, factoring, and me. I am giving work to somebody else instead dealing directly. It is like training a new person on the job. Or handling children. And I am in the middle of it and already hate it.
    Maybe, it works for my husband’s brother since he’s on the road most of the time.
    But I help with paperwork, so my husband doesn’t have to worry about that part. I don’t see now any benefits. It’s not even the money, it’s time it consumes and be in the middle of it all. Also, it adds more to my paperwork to note all the deductions after they take the percentage, charge for each invoice, and the wire.
    I am worried what they will do to us if we want to leave. They might ruin our relationship with brokers, etc. They might make things difficult for us. I will just have to see. I already have to stay 90 days for the trial period. Then have 30 days to leave or stay the full year.
    Then I need to send a letter by certified mail if I want to leave. And I don’t know how much time it will take them to release UCC.
    I still would like to see some of good things.
    It actually took them a few days to process invoices because the start up took so long.
     
    Last edited: Mar 28, 2020
    Deere hunter and Midwest Trucker Thank this.
  7. Midwest Trucker

    Midwest Trucker Road Train Member

    2,278
    5,325
    Aug 31, 2018
    0
    The brother probably just doesn’t have enough money to run on his own. Or he did it because somebody else said too and now he doesn’t want to jump through the hoops to get out.

    Invest the time in getting away from them, you’ll be happy you did.

    There hopefully will be someone come along and give you advice on how to go about doing it. I’ve not factored so can’t help you. Good luck. Your on the right path/mindset.
     
    Rideandrepair, PE_T, roadmap65 and 3 others Thank this.
  8. JDstrick

    JDstrick Light Load Member

    75
    35
    Feb 19, 2020
    0
    factoring is great. its absolutely imperative to use a non recourse factoring co. this means if they take the load its a done deal for you. they dont come back in 60 or 90 days on u.
    I have used Truckstop Factoring flawelessly for years. E scan your POD by 4est and money is in your account am. less 5%... no worries about chasing a beater!
    Once used Assist out of South Dakota...bad bad bad...got burned 2 times on brokers they approved . thats right, hard to believe. its was painful 2!!
     
    Rideandrepair and Blackhorse77 Thank this.
  9. JDstrick

    JDstrick Light Load Member

    75
    35
    Feb 19, 2020
    0
    you have to disengage from the snake, haul for somebody who has quick pay that you are not factoring to snake untill all loads are paid out..then you can get a letter of release. i had to learn the hard way 2..
     
    Rideandrepair and Blackhorse77 Thank this.
  10. JDstrick

    JDstrick Light Load Member

    75
    35
    Feb 19, 2020
    0
    5 % is 5 dollars per hundred to get my money the next day...I love it..keep cash rolling...,It is the name of the game.......
     
    Rideandrepair and Blackhorse77 Thank this.
  • Draft saved Draft deleted