What's the pitfalls of factoring

When I was a new company about 5 year ago we used carriernet group financial from Siox falls SD.. They had good rates flat no sliding scale. They also had a software that we wanted called truckwin it did everything from dispatching to IFTA and payroll plus financials reports. they were a good group of guys. look em up they are very far company.

 

The pitfalls are a lot of factoring companies will use your desparation against you. They will charge your the original 2%, but they will also have many, many fees that you do not see when you sign a contract. I worked for TCI Business Capital, and trust me, they charge MANY FEES that you wouldn't originally see. They, for example, will often times file a UCC against your company as soon as you sign their application which most people think is not really anything. That way, they have the right to collect any "due diligence" fees and other charges that you would never expect. Thus, when you find out they're deceiving, and you try to factor inevitably elsewhere, the new factoring company won't be able to factor your AR unti you payoff the UCC that TCI filed against you. I recommend using Bibby, Spectrum, or Crestmark. There are some good factors out there, but there are A LOT of bad ones. Good luck!!

 

I don't think you allowed to factor with two different companies. I'm with FCS and they match all quick pay rates.