Invoicing instead of factoring

Somebody correct me if I'm wrong but don't you still loose the money if you do factoring and the customer doesn't pay? I don't think factoring protects you from deadbeat customers.

People that have to use factoring starting out don't have enough reserves before they start. If you don't have at least 60 days of expenses saved up (90 days expenses would be better), you have no business starting a trucking company. New startups have enough to worry about without some factoring company scraping off the top. I know some will disagree but this is coming from somebody that's been through a failed business and I learned a whole lot coming out the other side.

 

The way I understand it, the "non-recourse" option merely means that they're not after you only in case the customer files for bankruptcy. Otherwise, if they can't collect they will come back to you and demand money return after 60 days of paying you + collection fees. Some say that they never after you if it is "non recourse", but I read the contract presented to me. Maybe it is not the same for every factoring company.

 

The problem of waiting for more than 30 days is more psychological than financial for me. I simply start having doubts whether or not I'll get paid at all. But the solution offered by the factoring in this case is superficial at best.

 

I have 2 invoices in the last 10 years not pay. $500 and $1200 Last one was Network FOB.
If you have a broker not pay within the time agreed in the contract. Contact their broker bond company.
I just recently did this with Omni Specialized. Called bond company and was paid by Omni in a couple days. NO complaint filed, just rattle their cage.

 

Usury (high-interest predatory lending) is as old as time. I believe Jesus took particular umbrage with the practice (See Matthew 21:12). There are always people willing to take full advantage of the ignorant and the desperate.

 

True. However, most of the time, we volunteerly take loans, use credit cards, mortgage our homes, we let themselves be usury victims.