What's the pitfalls of factoring

Discussion in 'Ask An Owner Operator' started by WallyGator, Oct 4, 2009.

  1. WallyGator

    WallyGator Medium Load Member

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    Apr 6, 2008
    Clearwater,Florida
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    Some do. but not really in Florida. and the ones that do are cheap and a bunch of crooks..Good Luck
     
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  3. mitchtazz

    mitchtazz Road Train Member

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    Lake Wales, Fl
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    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!!!!!
     
  4. JasonTheRock

    JasonTheRock Light Load Member

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    Oakland, Ca.
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    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.
     
  5. mitchtazz

    mitchtazz Road Train Member

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

    PeterbiltCouple Light Load Member

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  7. Mike101

    Mike101 Light Load Member

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    Jun 9, 2009
    Quincy Mass.
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    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.
     
  8. Gears

    Gears Trucker Forum STAFF - Gone, But Not Forgotten.

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    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.
     
  9. PeterbiltCouple

    PeterbiltCouple Light Load Member

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    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.
     
    Gears Thanks this.
  10. englewoodcowboy

    englewoodcowboy Light Load Member

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    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.
     
  11. WallyGator

    WallyGator Medium Load Member

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    Apr 6, 2008
    Clearwater,Florida
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    I feel the same.My own loads are fine but broker loads kind of make me nervous. I have about $25.000 out now and one bad check could really hurt.I pay my guys before I get paid so I might start factoring some loads.
     
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