Do You Factor

[Keep Rollin]

this is my experience
I tried dealing without a factoring company and before I knew it the invoices was 50-90 days old and I needed money.
I called and called.I then went to a factoring company,2.9 percent.The factoring company pays me 95 percent up front,with in 48 hours
at no extra fee.
they keep 5 % untill the bill is paid and put the rest in my cash reserves,minus their 2.9 % and 1 buck a invoice fee

I factor who I like,I don`t have to factor everything and hey cannot take money out of my account.
I let them hassle with the late payers,but the longer it takes the more they charge,like they go up on the percentage rate 1 % after 60 days.
I use the factoring company to do credit checks for free.Twice in 5 years I have had problem loads.
One was 300 bucks and the other was 1100.
I called Baxter Baily collection service in Mississippi and they told me the 300 one was gone,that the guy was 200,000 in the hole.I did not check their credit first.My bad
I turned the 1100 over to them and in 10 days they had me a check,minus their percentage which I wrote off as a loss along with the 300 bucks.I will never use a lawyer to try to collect money owed,I will use Baxter Baily Collections from now on.

as far as credit scores go,the load boards are off big time.I never depend on them
Since my factoring company dished out the money,I let them make the call on credit.

I haggle with the price with brokers and I try to haggle a little harder to cover the factoring fees.I started out with nothing but a truck and van and a credit card and built my stuff from there.I don`t want to take time to run down deadbeats or slow payers when I could run another load or two or go screw off at home.
to me it is a no brainer but like said above,read that factoring company contract very very carefully

one last note,when i send the paperwork in to the factoring co,I also send it in to the brokers ap to help keep them honest

Good info. Thanks for sharing! I've dealt with a few factoring companies being an independent dispatcher haven't had any problems so far.

 

[mndriver]

What percentage did they charge you? I may be having to call them for the first time this week.

50%

 

[mndriver]

went back and looked over the historicals.

We've had a normal 10-14% of our brokers go over 60 days.

We have 20-25% go between 30-60 days.

So at any given time, we are 30-35% of receivables over 30 days. Some times, we have been up over 40% past 30 days.

 

[tommyh]

50%

Balance 0-90 Days 91-120 Days 121-364 Days 365 Days+
$10,000 or more 15% 20% 30% 50%
$5,000 - $9,999.99 20% 25% 35% 50%
$3,500 - $4,999.99 20% 25% 35% 50%
$1,000 -$3,499.99 25% 30% 35% 50%
$500 - $999.99 50% 50% 50% 50%


BAXTER BAILY UPDATED FEES

 

[mndriver]

They took 50% from me. And didn't do anything. The check showed up in the mail the day I was filling out the paperwork to have them collect it.

Want to talk about loan sharks.

 

[Blood]

What percentage did they charge you? I may be having to call them for the first time this week.

Just file on the bond.
it isn't that big of a deal and a collector probably isn't going to help you much more than filing will.
Also, OOIDA will file on your behalf for FREE as a benefit of membership.

 

[ironpony]

No, but filing collections on a deadbeat broker will start to fuck up his credit.

 

[mndriver]

No, but filing collections on a deadbeat broker will start to **** up his credit.

So will filing on the bond. Probably more so.

Enough claims, they drop you

 

[ironpony]

So will filing on the bond. Probably more so.

Enough claims, they drop you

If you really want to mess with him, get a court judgement, file a lien on his house, and threaten to sell it at a sheriff's auction!

 

[Mike]

Just file on the bond.
it isn't that big of a deal and a collector probably isn't going to help you much more than filing will.
Also, OOIDA will file on your behalf for FREE as a benefit of membership.

This is what I did on Friday. Still have to send the carrier agreement to OOIDA, but they will be handling this for me.

 

[rudi2wudi]

My experience of cooperation with factoring companies has so far been exceptionally positive. I think they are an essential link for the stable and systematic operation of the goods market. Their importance was especially felt during the pandemic when not all customers could pay the entire amount of the order at a time.

 

[Mike]

My experience of cooperation with factoring companies has so far been exceptionally positive. I think they are an essential link for the stable and systematic operation of the goods market. Their importance was especially felt during the pandemic when not all customers could pay the entire amount of the order at a time.

Never noticed a customer that couldn’t pay.