Methods of convincing Direct Shippers

I've been saving since I was 17, on top of working 50-60 hour workweeks this first year at University

 

Deleted.

Reason: I don't want to discourage a such a young fellow.

 

Okay. Fair enough. Sounds like you're working hard, and that's to be commended.

So OP, how did you settle on brokering as your intended career path, and specifically, what made you decided you wanted to open your own brokerage?

 

And OP, where are you from that you call college university? lol. Like calling vacation holiday.

You moving to the US this summer?

 

First mistake is the thought of by non-recourse factoring you won't have to worry about being paid. It's non-recourse if the customer files bankruptcy.

Second mistake with factoring is you may at some point "borrow" that factored money to cover some other expense rather than pay the carrier. Assuming that your plan was to pay the carrier as soon as the invoice was factored to begin with.

Third mistake is thinking that a contingent insurance policy will cover everything. When there is a claim the customer usually stops all payments until resolved and paid. What are you going to do, tell the other carriers that as soon as it's resolved you'll pay them?

 

and don't take a measly 3% more like 50/50 there are many drivers willing to haul cheap don't waste your money foolishly. .. you have to eat too .... and you know the trucker will waste his extra money on chrome and chicken lights anyway

 

Talked to one driver this morning who wouldn't stop talking about his amazing new bumper and how he has it "almost paid off". He's also on 1 day quick pay and gets a comcheck for 40% as soon as he loads every time...

 

I grew up in the US in the northeast, but I go to school in Canada because it's way cheaper. Don't need that $200k in student debt

 

Brokering isn't my intended career path. I don't necessarily want to reveal my 10 year plan to all potential competition not to sound arrogant, but long term I'm going to hopefully start a fleet by leveraging the brokerage, with the state of the economy determining when that happens. Don't mean to sound ####y, I just have a plan I'm trying to execute

 

I appreciate you taking the time to go through the 3 explanations. For the third point, why would the shipper stopping payments be relevant to me when I'm submitting an invoice to the factoring company for immediate cash which I can pay the carrier with? I understand it's definitely necessary to have adequate overhead in those situations. On average how much would you say do situations like that with the shipper cost to the broker