Love's Factoring?

More pieces of your pie getting cut for community

 

...meaning?

 

so let me see if I understand.

CompanyA accepts contract for service.
Company A sells contract to Company B to receive immediate payment at a discounted price.

Company B holds paper till completion of contract?

would it then be understood Drivers for company A take the hit for the discounted sale to company B in way less pay?

 

Factoring = payday lending for owner operators.

 

I keep seeing these threads on factoring , I would say the only reason to use it is in a emergency. If you get to that point your probably living load to load and catastrophe is around the corner . By the end of the year the amount of money lost to factoring could have bought you new tires all away around and probably a full PM service than some .

 

But but but “I can write it off” “I never wait for my money” “did you check the brokers credit” lmao and every other stupid ### response I get from owner operators that pay someone to get paid. Pathetic business I’m in. Now I am finally seeing why my dad tried to explain to me not to follow in his footsteps....... I clearly didn’t listen I love trucks and I’m hard headed.

 

Who do you factor with l. That 2% sounds pretty good

 

That 2% sounds pretty fictional.

 

I'm not an expert. I'm sure some of you had experience with factoring. This one guy I talked to obviously a salesman but he did have a good pitch. 3% factor plus fuel card and the savings on fuel would make up the 3%

 

Fuel card saving. Could be the difference between the cc price and cash price.
Aren't those load boards listed, free to everyone.

I used a factor a few years ago. My first couple years it cost about 12g per year.

I started using brokers that offered "quick pay" or paid full amount quick.

Took me 3 years to get off the factoring.
The company gave me a release to give to anyone that wants to see a release.

I still use their fuel card.