good Non-recourse factoring

Discussion in 'Ask An Owner Operator' started by HopeOverMope, Dec 27, 2017.

  1. HopeOverMope

    HopeOverMope Road Train Member

    Feb 25, 2016
    Anybody here have any good experiences with a non-recourse factoring company? And if so, if you don't mind sharing the companies name and the rate you pay them, that would be great; especially because I'd rather hear it from carriers/truckers than off these company websites

    Just looking at some options if I decide to factor for the first year out- thanks in advance if you answer
    Last edited: Dec 27, 2017
    Oldironfan Thanks this.
  2. whoopNride

    whoopNride Road Train Member

    Jan 13, 2008
    I know two people who use Porter Billing in Birmingham AL. They have nothing but good things to say about them.

    That said, I have never factored anything personally, just passing along what they tell me.
    DSK333 and HopeOverMope Thank this.
  3. Misesian

    Misesian Road Train Member

    May 21, 2014
    Nothwest Arkansas
    NASTC has a good deal with Orange Commercial Credit. I signed up with them but haven't used it yet. I remember the rates were good though.
    DSK333, redoctober83 and HopeOverMope Thank this.
  4. HopeOverMope

    HopeOverMope Road Train Member

    Feb 25, 2016
    Great, thank you all for those leads.
  5. xsetra

    xsetra Road Train Member

    Aug 21, 2011
    Apex charges 5%. Not sure of terms.
    I use the recourse cost about 3% per invoice. I have no minimum $$ per month.
    I've read a post on ttr someone recently stated they required minimum $$ invoices monthly.
    I have been satisfied with their service.

    I recommend not using factoring company. Better to get a line of credit with your local bank.
    Good luck.
    TallJoe and HopeOverMope Thank this.
  6. Scooter Jones

    Scooter Jones Road Train Member

    Apr 19, 2011
    Exactly, a LOC with low interest rate is better option. For instance, my insurance company offers a 15% discount if the premium is paid in full upfront. It was like a $1400 discount for me.

    I moved the money into my business account from the LOC and paid the insurance in full.

    I just needed a week for some invoices to pay from good customers, which they did and I then paid the LOC back the full amount.

    Cost me like $15 in interest.
  7. TallJoe

    TallJoe Road Train Member

    Apr 12, 2016
    But is that non-recourse really non-recourse in absolute terms? The Triumph solicitor (the one you see on DAT loadboard) told me, that it is but only, if the broker has filed for bankruptcy. If not, and the non-paying broker or customer is just not paying but still in business, the will still come back to you and demand money return.
    redoctober83 Thanks this.
  8. Justrucking2

    Justrucking2 Road Train Member

    Sep 12, 2017
    Plymouth MI
    I used Apex, they were a good outfit and saved my bacon a few times from dirty brokers. They were non recourse as long as cleared through them. No clue on what their rates are now.
    Rideandrepair and HopeOverMope Thank this.
  9. stayinback

    stayinback Road Train Member

    Jan 24, 2014
    Factoring really is not a solid money flow solution- Your giving up way too much money over the length of your contract to them

    Most Non-recourse stats at 5% for you 1-2 truck guys....

    IF,and only IF you fail to do your homework and move a load for a subpar broker or shipper.........Move it to a reputable collections company like RTS.....

    Now,If you are seeking factoring because you have a certain money flow Problem, (Which means you are bad with money) ..Then Factoring will keep you afloat- But you Need to fix YOU first, Then go to 30-45 day receivables billed directly to your brokers or customers.

    Hate seeing you guys give up $ 10-15k per year in factoring........That's a New car-or an inframe on your truck.
    m16ty, gokiddogo, xsetra and 1 other person Thank this.
  10. Justrucking2

    Justrucking2 Road Train Member

    Sep 12, 2017
    Plymouth MI
    When I through in the towel and started factoring, fuel was well over $4 a gallon and time to pay was well out past 90 days. And right now, nothing has really changed. I see things getting better in the future, but for now independents catching their freight off of the boards and one or two trusted brokers, factoring is now a fact of life.
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