I wonder why we are doing it...

[QUOTE="semi" retired;4261876]Hi skateboardman, boy howdy, got that right. Remember those crooks that you trip leased from years ago, to get you back home? You ALWAYS took the advance, as many times, that was all you saw.[/QUOTE]

old habits are hard to break,lol to this very day I always get every available penny on a load advance whether I need it or not. it is that much less of my money someone else has.

and folks , its frustrating but that just the nature of this business, and keep in mind , the guy shipping the product waits to get his money quite often also.

 

You sound like me. I am opposed to paying someone to pay me money that they owe me. No thanks I will wait the 30 days for ALL of my money. "we will pay in X# days for a percentage" ok I will deliver faster for a percentage otherwise pay me all my money.

 

some brokers arent that bad, but they make alot of money with quick pay and advance fees

 

Just raise your rate to offset the quick pay fee or if you prefer using a factor, include the extra fees in your rate. Consider it a part of the costs involved in doing business. You might also check into getting a line of credit from your bank. Fees are usually lower with this type of funding than using a factor. I wish we could always get all of our money when the load is picked up or COD. It would help with cash flow. But, that isn't the way most in this business operate. Every business must have cash flow in order to survive. It is better to take 1% or 2% off the bill to keep the cash flow up than to sit waiting on your money to come in.

 

The problem is that there is no "we". Truckers aren't united, haven't been and wont be anytime soon. So brokers take advantage of the numerous drivers who are constantly rotating through the system, coming out of trucking companies after a pathetic 6 months to a year of "professional" driving experience. After being in this for over 2 decades, I've gotten used to all the scams, the green rookie drivers, the charlatan motor carriers, and freight brokers who lie to everyone. Most people like me retire and move on, just lucky to not have ended up in prison after being pulled out in front of by a high coke head on their way to get a sandwich to appease their munchies.

Trucking is a tough business and we are all preyed upon left and right by all sorts of predators. Once you realize that, you just start saying no more and more. Money or not, its just not worth risking your future and lively-hood for some scumbag predator. Get all the money you can and demand more and more from every broker. They don't give a rat's ### about you so make your money and move on.

 

There's great people in trucking too! Find them and hang on to them. That's the only way you'll make it. As far as a union goes, the Sherman Act prevents anyone from interfering with interstate commerce. If there was no head to chop off, so to speak, then all drivers could quit together, but there's no way for that to happen. Especially with the trucking schools recruiting right out of prisons. Forget it. Trucking has been bastardized because corporations need their stuff moved and really, who WANTS to sit in a truck and stare at the highway all day? You have to become conditioned to it. So they have initiated predatory practices to keep the trucks moving down the highway. Unfortunately this strategy has blown up in their faces and for the next 5 years, trucking could be a mint for the right people in the right places. Because the FMCSA and the DOT have become sick and tired of companies stocking their trucks with criminals who have little to no respect for human life. Ugh. Like I said, if you find good people in trucking. HANG ON TO THEM!

 

Few quick points:

1) If you're paying overdraft fees or interest on credit cards, you're clearly under capitalized...

2) Brokers don't just sit on the money -- they often get paid in 30-90 days while paying out in 30.

3) Factoring costs what, 3%? At $240,000/year that's $7200/year that you are forfeiting. A $20,000 loan at 4.5% costs $500/year. $1,000/year at 9%... Why pay 7-14 times that for essentially the same thing?

 

There is always a cost. If you use quick pay or factor, there is a cost. If you wait 30 days or longer, there is a cost. Consider it a cost of doing business. Everyone has a different business model. You need to do what is best for your business. You may factor or use quick pay today, business you don't have to do it forever. Business is constantly changing. As far as needing a union, that is the last thing we need in this business. Unions would only drive up our operating costs and I have never met a businessman who thinks that they need a union to make them successful. What we need is more people who spend time learning the basics of how to operate a business rather than so many truck drivers who manage to buy or lease a truck. It doesn't make any difference whether you use brokers or go direct. It doesn't matter if you do quick pay, factor or wait until the broker or shipper decides to pay you. Do what is best for your situation. I will mention one thing about factoring or quick pay. Every business must have cash flow to survive. I would much rather use quick pay or non recourse factoring rather than borrowing money to finance my business. If you borrow then the money must be paid back. If you use quick pay or factor then you are not accumulating debt and if the economy goes into the toilet again, you don't have to worry about making loan payments. You do the work, haul the load and get your money in a couple of days with NO debt. I have had credit lines, used factors and quick pay. I have also financed freight rate rates by waiting on my money. I prefer the no debt. And I have not factored in several years.