help with choosing factoring company

Looks like a sales brochure copy/pasta. They all say that.

You need to get the actual terms and conditions, then read carefully to understand what must happen to either release a single account receivable, or get released from the factoring deal altogether. Pay extra attention to their definitions of "default" and "good standing."

It's never that simple. Ever.

 

Just another case of someone asking a question..... (but you guys let me know what to do )........and then don't like or want to hear the answer. SMH

 

I don't respond much to anyone asking for help on here anymore. You won't even get a "thanks" or a response.

 

I really dont wanna go out of

Thanks for help man! I really appreciate it!

This is agreement from truckstop:
This agreement is made between (company name): ____________________ and Internet Truckstop Payments, LLC DBA Truckstop Factoring (“Truckstop Factoring”).

1. I acknowledge that if a check is mailed to me belonging to Truckstop Factoring I have 7 days from the time of receipt to forward the payment to Truckstop Factoring. If payment has not been made to Truckstop Factoring within the allotted time Truckstop Factoring reserves the right to charge a $50 fee per check.
2. I acknowledge when Truckstop Factoring purchases an invoice the invoice has been sold and is assigned payable only to Truckstop Factoring.
3. I acknowledge that Truckstop Factoring does not purchase double brokered freight, truck ordered not used, loads with claims, or loads that are more than 30 days old.
4. I acknowledge that Truckstop Factoring reserves the right to not purchase invoices that are not credit worthy.
5. Additional Fees.
   • $1 ACH Fee
   • $1 EFS Fee
   • $1 Fleetone Fee
   • $25 WIRE Fee
   • $20 Letter of Release for a specific broker
   • $50 Check Cashing Fee
   • $500 Termination Fee
   • 3% Credit Card Fee
6. I acknowledge that if I decide to terminate my relationship with Truckstop Factoring I will notify Truckstop Factoring, in writing, at least 30 days prior to termination
7. A $500 Termination Fee will be assessed in order to file any documentation necessary to close an account.
8. I hereby acknowledge that the rate is _____% on a non-recourse basis and that this factoring services agreement constitutes a contract Truckstop will assume the risk of non-payment so long as there a no Payor Disputes.
9. Payor Disputes shall mean any alleged dispute, deduction, claim, offset whether bona fide or otherwise as to price or any cause of defense to payment. Truckstop may attempt (but is not required) to settle any Payor Disputes in its sole discretion.
10. This contract shall be governed by the laws of the State of Idaho. In the event of litigation, the parties agree the exclusive courts of jurisdiction, for matters not requiring litigation in Federal Courts, shall be the State of Idaho courts located in Payette, Idaho, and the Federal Court in Boise, Idaho, for matters filed in Federal Court. Idaho law shall apply to disputes, claims, demands or causes of action that I and Truckstop Factoring may now have or may arise in the future based on this Agreement. Truckstop Factoring and I submit to in personam jurisdiction of the State of Idaho and the state and federal venue in Idaho above stated.
11. I irrevocably authorize Truckstop Factoring at my expense, to exercise at any time any of the following powers until all of my Obligations have been paid in full:
    1. Truckstop Factoring may convert any cash, wire, ACH, or payment in my name or Truckstop Factoring.
    2. Truckstop Factoring may take all steps, actions, suits or proceedings necessary to collect upon my account.
    3. Truckstop Factoring may file any claim under (i) any bond or (ii) under any trust fund or (iii) any insurance policy.
    4. Communicate directly with my Debtors to verify the amount and validity of any account created by myself.
12. I irrevocably authorize Truckstop Factoring to file any initial financing statements and amendments thereto that indicates the collateral as all assets of myself or words of similar effect, regardless of whether any particular asset comprised in the collateral falls within the scope of Article 9 of the UCC, or as being equal or lesser scope or with greater detail
    1. File any Correction Statement in the name of myself under Section 9-518 of the Uniform Commercial Code that Truckstop Factoring reasonably deems necessary to preserve its rights hereunder.
13. Account Disputes. I shall notify Truckstop Factoring promptly of any situation that might affect my account with Truckstop Factoring. This includes tax levies, offsets, accidents, or any other negative event.
14. In the event any one or more of the provisions contained in this Agreement is held to be invalid, illegal or unenforceable in any respect, then such provision shall be ineffective only to the extent of such prohibition or invalidity, and the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

 

I think you're a crazy person if you sign a factoring contract as a small operation. With so many quickpay brokers and so little actual accounting work with a small operation I think it's just handing over around 3% of your gross for no good reason.

 

Can you explain why? What is the issue to use factoring like once in a month for example? Why is that crazy? Well its gonna be almost impossible to find a load as I have new authority and I have box trucks.

 

I signed on with Truckstop.com a couple months ago. Not a cashflow issue, but more an issue of me being too paranoid to work with certain brokers. The $500 termination fee goes away after you factor $20k, and it will detail that in the contract. Also, you don't actually ever have to terminate it. You can simply just never use them. Up to you. I did factor a couple loads right off the bat just to see how it worked, and I even took a fuel advance to check that out too. Now they're just another tool in my tool box.

 

This is what I am trying to do and peope here saying I am crazy but they don't day good reason
Thank you for help. Truckstop agreement is pretty simple and I think I will go with them for now...

 

Not necessarily anything super urgent, but something that can be an inconvenient discovery at the wrong time: when you do sign with a factoring company, they most likely will place a UCC filing. That is, a lien on your business.

The point isn't that they do it. You're borrowing money, so of course they want to secure the debt any way they can.

My point is: know that it's there, and don't forget it even though everyone else involved most certainly will. When you apply for other financing, it will come up. Just be prepared to explain it, or hit it head on and disclose your factoring agreement when applying. Also, when you end a factoring agreement, the factoring company has nothing to gain by rescinding that filing so they won't be in a hurry to get it done. Might even accidentally on purpose forget. Once you're not their customer any more, getting action from them becomes exponentially more difficult and time consuming. Getting that done while securing a blanket release and closing the agreement out, is a lot less of a problem than trying to get it done some time later after you're not their friend any more.

 

I didn't see anything about it in the contract, so I'll send them an email and ask. As far as I'm concerned, they aren't lending money. They're buying an invoice. It's non-recourse unless the customer files a claim against my insurance on the load. Thanks for the heads up. I'll post back what they say.