If you only use load boards how do you get paid?

You send the broker the bol, rate confirmation, any recipes (lumper, toll, etc) and your invoice. They send you a check in the mail, some may take thirty days to arrive, if you don't have by then you call them. Some brokers have different options like, quick pay, direct deposit, whatever. I always take regular checks in the mail. If you don't feel sketchy brokers you will generally always have your check within 33 days.

Pretty simple really...

 

Good deal.

 

While I normally would not get into this kind of discussion- here goes

If you think that you have to factor your receivables- you are already in trouble .

The 5% mentioned above is based in the entire invoice amount. If your cost basis is roughly 50% of the invoiced amount - Then you are giving up 10% of your profit on every load.

This makes very little sense to me, if you don't have the resources to carry 30 days of operating costs - you are not ready to run your own shop and are better off leasing to some outfit that will take care of the cash outlay for you

 

Factoring is just one more hand in the pot.

That is what socity has become. Everyone trying to get there hand in "YOUR" pocket.

The sooner "I" learn this the better.

 

I helped 2 people get started. One was on this forum. Both had nothing. Both had to factor. Without that money the next day they would have sat and starved. It was a Godsend to them!

I remember one of them. He was in the worst shape. He had to spend almost all his money on a big chuck of insurance up front. He had $120 left in his pocket and about a 1/3 of a tank of fuel. He got his first run and it was a short one. He couldn't do a long run because he didn't have enough fuel or money to drive 500 miles that first day after loading.

The run paid $900 and delivered the next day. He picked up and put in a request to the factoring company for a 50% advance of $450. He drove as far as he could the first day on the fuel he had. By 7am the next morning he had $450 in his checking account and was able to buy the fuel needed to finish the run. The next morning he had the remainder of the $900 deposited minus the $450 advance and factor fee.

The next run was a little longer and the same thing. The only difference was now he had the money to run a full day and the next morning until his next advance was deposited by 7am. From that point he had the money to keep going.

Many people have taken much more of a risk than my friend starting out. Nothing wrong with factoring

 

You missed the point.

I did not say it could not be done.

I said it makes no sense to give up upto 10% of your profit.

If you don't have cash to operate then going to a carrier that carries all the cash makes more sense.

If you spend every last penny on plates, insurance and have no money for fuel or unexpected expenses you are exposing yourself to unnecessary risk.

People bet on long shots everyday but the majority of them to not come in.

 

It's 5%. His load was $900 total. He paid $45 total for the factor fee.

 

Yes but he did not make $900 after variable expenses. He probably made closer to half of that. So for easy math that is $450 and he paid $45 to the factoring company out of the $450 not the $900. So closer to 10% than 5%.

 

Yes another hand in the pot. Very few will make it starting out broke. It's easy to say get a J O B and save save save. Some can, still puts them a ways out. There is a time in life to go all in, do things you pray don't last forever. Some get lucky.

 

I found a JOB where I worked 6 months for the guy I leased onto for %10 and get a settlement every week for the last 7. For another %2 get paid same day. I can't see giving up %20. Especially if all they do is load board freight. We have some good paying direct freight but they have been slow this year compared to last.