Factoring...

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?

 

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.

 

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.

 

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.