What's the pitfalls of factoring

ok... well now that i got the dedicated florida broker out of the way.. that eliminates one broker and one factoring company which means that if i want to stay in the state i'ma have to scavange load boards.. but if i do that chances are that i'll end up with multipe brokers and chances of me finding a factoring company to work with them all are slim. ... ... ... well the good news is i'll be home in a few weeks for RnR!!!!!

 

If you are going to run under your own authority you cannot be rigid with the lanes you want to run and brokers you want to use its just not possible. I suggest using as many different brokers as possible, I have about 15 that I have used so far (all of them obtained from internet truckstop). Two of them have lead to gigs lasting for a month paying real well. There are no certainties when you work for yourself.

 

true, wont get any back talk from me on that one.

 

Some banks will factor as well.

 

I have tried D & S they seem like nice people but, They want you to factor your bills only with them. They do not want you to use anyone else.

 

I've not used a factoring company (yet), but from what I understand, you can only use one at a time... or are only supposed to use one at a time.

 

I agree.

Also, we were told that if one factoring company doesn't take certain jobs, then you can use another factoring company. Freight Capital used to charge a fee to get started, but about a year ago they did away with it. Always check out the fine print, too.

 

I am on the fence about factoring, If you go with a company they want all of your bills. I have some brokers that pay in as little as 2 days (with no additional costs as well as if I need the funds immediately I have to pay the $1 comcheck fee and I get it) religously. Why would I basically want to give someone 1% to 5% of my company/profit. That is essentially what you have to do when you factor (and I dont know about the rest but my profit margins are way too tight right now). Right now with freight as cheap as it is, it is hard to let go of $10 on a bill BUT on the other hand, right now I have over 20K out and it is all within 21 days or less...... tough decisions to make.