help with choosing factoring company

Times a thousand

 

The best rates in the industry since the ELD mandate and you still can't make ends meet without factoring? Wow.

 

Well then go talk to your bank. My credit union offers factoring which is much closer to having a financial advisor then an factoring agent working with you. Their goal is to get you in a situation where they step out of your business and let you run it going forward as they will not offer that service again. They see this as a temporary help and not a permenet business answer. If you don't bank at a credit union you might want to go check it out.

 

I'm getting my own Authority and the issues I had back in the passed with an older Authority I had with a friend was Not getting paid by brokers. My intent was using a Factoring company because after reading numerous details about Non Recourse payments it sounded reasonable when running loads regarding time & the headache of chasing those Account Receivables whiles on the road. Back in 1995 Brokers had 15 Days to pay (computers weren't as accessible as they are today) & being young at the time & not understand the business that well I booked a load through a local broker picked up the load & delivered it filed the BOL paperwork etc. Since my friend was basically the investor (he hadn't a CDL) I ran the company & decided after a few weeks to sign on to a carrier for the experience and headache of chasing down loads etc. because I was new. Up to today we were never paid for that load. After working with the other carrier as a Owner Operator for a year we sold the truck (it was an older 1990 Peterbilt 379 with 800k mi's on it that needed $5k to fix). Regardless, I left then worked for worked for various companies as a driver to where I am today.

I'm just reading the post in this thread regarding 'Factoring Companies' but throught that they were better than what I had to go through in the past when collecting money from Brokers? I know trucking is a cut throat business after driver for 25 years. Even though I'm planning on getting back into being an Owner Operator running my own Authority with the extra capital I have besides the $40k down on a new Freightliner, Authority set cost of $20k & my reseverse of $20k (also a line of credit of needed of $50k) I'm NOT trying to be chasing down Freight Brokers for 15 or 30 days no payments or lose 60% off the top.

I'm trying to understand more about Factoring Companies Non recourse payments if take 3% to 5% own the BOL from the broker and pay ('You' the Carrier) within 24 to 48 hrs to your bank account?

The Truth About Non-Recourse Factoring | Commonwealth Capital, LLC

 

Bet any amount of money you won't find out how much it cost to terminate a factoring contract anywhere.

 

There's no such thing as a short term agreement with a factoring company.

Customary terms are a year, and your account must be in good standing, with any balance already paid in full when you submit the required notice at the right time. Usually 60-90 days before your anniversary date, that will mark the year contract period. Often there is a fee associated as well. They don't make it easy. You have to get a copy of the terms and conditions and read everything carefully.

That said, sometimes they'll waive some or all of those conditions for a good customer who's leaving on good terms. I got that once. It's not something you should ever expect. I believe I got it because I wasn't rushing to move my factoring somewhere else, and made it clear I'd wait out the required term in order to avoid fees. I hadn't used them for nearly a year anyway, and had a good enough working relationship with my account manager to be comfortable asking for an early release. Since they had nothing to gain but a bad referral by messing with me, they let it go.