To Factor or Not To Factor?

i use d&s factors... you only have to factor what you want / when you want....... no big contract with fine print...no setup fees ......they will give you free tripak envelopes ..........they take a straight 5% off the billed amount ...they are no recource....as long as you call and get the broker approved you get payed whether they do or not....they charge $1 for each direct deposit so if you send in 15 bills in one day or 1 bill (each bill must be in a seperate envelope) it is still $1
you get payed the day they recieve the bills .....do the load monday...send out the bills on tuesday ...they recieve them wednesday...the $ will be in your acct on thursday when your bank opens

 

I don't use a factoring company personaly, my friend did when he had his own authority.. The draw back using them to me was they often dictated who you could haul for or not haul for. (Based on if they had a recently pulled credit report on that company or broker or not). If that company didn't meet their standards they wouldn't accept bills from them.. (You would be suprised who they declined to do business with!) Just my 2 cents..

 

Before you sign up with a factoring company talk to your local bank. I use a small(4 branches) local bank. I knew little about factoring so I went to talk to them. I told them what I was thinking and received this reply "We'll do it for you"! HUH!! Banks have many programs to assist small business owners and O/O are small business owners(some just don't know it). The bank charged me 5% and funds were deposited the next day in my business account. I'm no expert on banking laws in every state but the local bank worked good for me and I would suggest you check with one before you agree to a factoring company. Just my .02.

 

I have been lucky and have not had to factor in over a year, i have used Factor Loads .com always very happy with them send the bills Fed Ex you have your money the next day either on Com Data card or com check.. Non recourse i think they get 7%

 

I've never used one before, since I'm new as well, but it would seem to me that I could use them for every other load or the ones that they will pay for and the ones they won't will be the 5% that you keep. I would bet that using them every other load could pretty much keep you going with fuel, insur., meals, and the rest could cover maintenance, taxes and wifes money.