Invoice Factoring

Stay the hell away from a factoring company!!! I have one although I'm a carrier not a broker and I have NOTHING good to say about them!

 

THIS!!!!!!!!!

 

While I agree with this statement....FleetOne has their own Factoring company.
I have looked it over and it 'seems' fairly decent.

The only other company I have talked to (and remotely liked) was Eagle Capital.
However, in their application they want the last 2 yrs of tax returns (including your spouse) as well as bank account
statements. That didnt fly with me. So, I didn't follow up.

I don't use a factoring company.
If you need faster cash, many places offer 'quick-pay' for equal to or less than factoring (5% on average) costs.

 

While I am not a fan of typical trucking factoring companies, if you are large enough you can get some decent deals that are not designed take advantage of the carrier/broker. Covenant Solutions is fairly straight. But expect a reputable factoring company to want to look at your financials including tax returns.

 

Talk to your bank!!!! Seriously!!! Although I do not know what you have discussed for percentages for factoring companies I can tell you my factoring company (trans am) takes 4% of my bills, takes 10% and puts it into a reserve account right off the top. Rates vary depending on days to pay of course. They gavee a fuel card accepted at pfj that supposedly gets me cash price plus an extra .12/gallon off never have seen that extra 12 cents I supposedly save, when i actually do get paid from the broker they leave that 10% in the reserve costs me $5 each time they load money onto my fuel card, $5 to load my reserve onto my fuel card. They will NOT call a broker to collect money till 45 DTP so they get more of the money I worked for. I just have nothing good to say about them and this is for EVERY BILL as they own ALL my recievables (so they think). I don't have to factor every bill but I still am supposed to send them the bills that I invoice out and still get charged $5 to get my money loaded on a fuel card. Not all factoring companies are this way but I do not think highly of factoring companies AT ALL!!! talk to your bank if you can show them you have 500,000 in bills coming in let's say for instance and its all coming in 30 days you can get a good loan if your customers credit is good. Factoring sucks period. And they lock you in (the larger smart factoring companies anyway) and there are no loop holes out I have read my contract looking for a way to get out numerous times and haven found one. I hate trans am factoring with a passion never should've left ABC. Biggest mistake I ever made was factoring my bills. NEVER AGAIN!!!

 

brokers have the cash.

every load i've hauled has all said PREPAID in the billing section of the bol's. loads have to pay before they get hauled. probably has to do with when the economy started tanking and people not paying.

just like us individuials have to pay ups or fed ex to ship our products to us.

 

Pre-paid means the shipper is paying the freight.
Collect the receiver is paying.

 

This is one that I called when shopping factoring companies over 2 years ago, that didn't impress me at all. One of a few sticking points was the unlimited power of attorney buried in their pawn-broker quality agreement. That topic was above the salesman's paygrade so he put me on with his manager. When he got to yelling at me on the phone and accusing me of criminal intent, I hung up on him and crossed TransAm off the list.

Seems from your account it was a smart move on my part. Sorry you got mixed up with them.

If you can't afford the time or money to buy your accounts back from TransAm, another factoring company may be willing to buy your open accounts out from TA to get your business. Possibly even ABC, the one you left.