Possibly going 100% Independent....

NM..i found it online..total quality logistics

 

they try to hold out on the money til they can't find a truck to take the load.

 

landstar has a overnight address u can mail bills to and they have a comchek card they put your money on. mercer has tch and alot of the others offer direct deposit now. i don't use a factoring company,but thats only because i didn't want to run all my bills through them.

 

what is this Factoring thing you guys are talking about?



American Trucker

 

You can factor as much or little as you wish with D & S. Some factors require that you do a minimum amount with them each month or pay a minimum fee. Others require that you factor all of your receivables. I would not do business with any factor that required that I factor all of my bills. You can often do a quick pay and get your money within the same time frame and with a lower discount rate.

 

You don't need to go to the expense of overnighting your bills to Landstar. You can either use Transflo or upload directly to their website. Mercer still uses Comdata as far as I know. Some offer direct deposit, others offer comchecks or similar payment for quickpay or advances. There are factors that don't require a minimum amount each month or that you factor all your receivables with them.

 

A factor is a company that essentially buys your receivables or advances you money on them. There are two types of factors: recourse and non recourse. A recourse factor will advance a percentage of the bill (usually around 80% or so) and base their fee on how long it takes for the broker or shipper to pay them. The longer they take to pay the higher the percentage. If the broker or shipper doesn't pay within a certain time frame, such as 60 days, then the receivable is charged back to the carrier. With non recourse, the factor buys the receivable for about 5-8% of the invoice amount. In other words, they deduct their percentage from the total invoice and send a check or direct deposit to the carriers account. If the shipper or broker fails to pay the factor then he eats the bill. It cannot be charged back to the carrier if the shipper or broker doesn't pay. The percentage is higher than recourse but once the factor takes the receivable it is their responsibility to collect. The carrier is out of the picture. Personally, I prefer non recourse factors, but if you have shippers who pay within a short time frame then it could benefit you to use the recourse factor, depending on how long it takes the shipper or broker to pay.

 

You don't need to wait that long if you use their quick pay. Most brokers offer quick pay. You will need to discount the bills by at least 1 1/2-2%. Some charge more. I have some brokers who will pay within 15 days or less without having to pay any discounts.

 

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