What's the pitfalls of factoring

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

  1. 112racing

    112racing Road Train Member

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    d&s does not want all your bills you only factor the ones you want to (they must be approved) they take 100%of the risk you get your money direct deposit the day after they recieve your bills (free tripack)
     
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  3. stepnfetchit

    stepnfetchit Medium Load Member

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    I retired last year and sold the truck and trailer, but I'm gonna put my .02 in here. I was low on operating funds so decided to check out factoring. Not being familiar with it I went to my local small bank (4 branches). Told him what I was checking on. "We'll do it for you. HUH!! Sure, bring us your BOL and load confirmation and we will advance the $. Make a long story short and not enough room to post all the info I did it. Worked great as far as I am concerned. Now I'm gonna catch flack over what I'm about to say, but remember it worked for ME! They kept 10%- 4 % to handle the paperwork etc. 6% in escrow, each quarter they sent me a settlement sheet I guess you would call it and paid me interest on escrow over my receiveables. I just let my escrow build up and never drew against it. Now it worked for me. They would even check credit for me if I needed to. Probably not for everyone, but it's worth checking into. JMO
     
    wrongwaytommy Thanks this.
  4. PeterbiltCouple

    PeterbiltCouple Light Load Member

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    Yeah, hubby kept telling me that banks have been doing it for years and when I checked with our bank about a year or two ago that particular bank didn't do them. Some do and some don't. But as the other post said, THEY take the risk, not you.
     
  5. jdjordan2810

    jdjordan2810 Bobtail Member

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    Hey posted a few days ago and got alot of useful feed back. So i am back with another question we have our own authority and are thinking of using load boards instead of using a broker can anyone tell us a good reliable factoring company? We have a new authority. Does anyone know one that will be good for us? We have heard from Factor Loads but that is all, We want to know if any other company is out there?
    Thanks:biggrin_25514:

    Also does anyone know any good load boards?
    :biggrin_25523:
     
    Last edited: Mar 3, 2010
  6. 112racing

    112racing Road Train Member

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    d&s factors.....google is your friend .......simply the easiest to get hooked up with no credit check on you .... you only factor the loads you want to no minimum with straight 5% fee no recource free tripak envelopes no hidden fees do a load today direct deposit in your account day after tomorrow
     
    Big John Thanks this.
  7. High Desert Dweller

    High Desert Dweller Medium Load Member

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    It's actually 1 to 5% of your gross, which can amount to 5-20% of your profit if you factor all of your BOLs. Not a very good business model, IMO.
     
  8. Gears

    Gears Trucker Forum STAFF - Gone, But Not Forgotten.

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    I won't argue with that logic. Still, it's not a bad idea to have an account set up with a factoring company. I've got one set up with Freight Capital. I use it only when I get in a pinch. Another thing, if you're getting loads from a broker, many offer a quick pay and it's usually much less than using a factoring company.
     
    Big John Thanks this.
  9. JoBernard

    JoBernard Light Load Member

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    Feb 18, 2010
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    Here's a couple of paragraphs of an article I wrote: there is so much more, sorry I can't reference the article right now but I try to put the article on one of the Ezine type sites and ask the moderators if I can point to it, here goes:

    Services Factoring: Here's part of a testimonial I sent my factoring company recently, I think it'll fit just right in this spot. First of all, the reality of waiting 30 to 45 days sometime 60 days to get paid is almost too overwhelming for anybody, but even these brokers that offer a quick pay involves a separate contract with each brokerage all with different ways of doing business, different standards and fee structures, I'd just as soon become familiar with and lock in to one system. What's more, if I had to do the follow up on all these companies, I'd be a raving maniac and I'd probably drive some of them over the edge too; and besides all that, I'd never have time to run loads, but factoring relieves me of that whole stress, so I can focus on running the company.

    Let's get to the real nitty gritty though, I'm sorry, but if I'm a broker and things are tight, I mean really tight, I'd rather get the loads that were factored paid before I pay on the loads that aren't factored, Why!!! Because there are companies like Twelve Oxen Transportation, that call their factoring company on every single broker they can, and if that broker has not paid that factoring company Twelve Oxen WILL drop off the load, and who knows it might be a great potential money maker for the broker.............You see, it's just basic common sense it's not at all complicated. If you're the lone ranger out there, waiting on some broker who a month later, can't even remember you did a load for him, you're asking for frustration times ten. and now you know.......what I know, Jo Bernard
     
    Last edited: Mar 3, 2010
    Hardhead Thanks this.
  10. wrongwaytommy

    wrongwaytommy Light Load Member

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    I have factored quite a few loads in the past,but now here is what I do to get the cash flowing
    I try and get all the fuel advances I can,thats a 35-40 % advance on your load.
    I also try and use only quick pay brokers and if they pay in a comcheck or t chek in a few days afyer the load is unloaded,great!
    If they pay in one week thats good too
     
  11. uncommon_belief

    uncommon_belief Light Load Member

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    Don't go to Tancentral/TCI Business... just don't. It's gotten bad. If you need specifics, I'll come back to the thread. Gotta' work right now.

    I heard D&S was the best. Sure wish we were with them. They sound wonderful.
     
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