Owner Operators; comments encouraged (Factoring)

That is usually the case with recourse factors. When I used D and S they would advance the full 95% within 24 hours. That extra 10% recourse factors hold on to is called a reserve account. They advance 80% and hold 10% in reserves until they get paid. I would NEVER use those type of factoring companies. 95% nonrecourse advance was the easiest way to factor.

 

this O/O comment is that if you have a lot of direct customers who take 60 days or more to pay I can understand factoring. However, if you are dealing with mostly brokers you can use their quickpay programs to keep cash coming in. OR, you can offer them your own quickpay program giving them a 3-5% discount for payments postmarked within 2 weeks of delivery.