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BigRich
Joined: 26 Mar 2008
Posts: 4
Location: Miami Florida
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| Posted: Fri Mar 28, 2008 11:16 am Post subject: FACTORING ? |
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Hey folks,
Im new to the trucking industry and never used a factoring company before. Im considering using Apex Capital Corp. for there factoring and fuel card services.
Any comments or complaints on their company? |
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BigDiesel
Joined: 01 Apr 2007
Posts: 876
Location: Space... The Final Frontier
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| Posted: Fri Mar 28, 2008 11:24 am Post subject: |
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| If you need to factor look at your business bank first. If they do this, the rates will be cheaper. Many factoring companies are nothing more than payday loan sharks. |
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hoohaa
Joined: 15 Feb 2004
Posts: 399
Location: Cleveland,TN
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| Posted: Sat Mar 29, 2008 4:51 pm Post subject: Re: FACTORING ? |
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BigRich wrote: Hey folks,
Im new to the trucking industry and never used a factoring company before. Im considering using Apex Capital Corp. for there factoring and fuel card services.
Any comments or complaints on their company?
If you are thinking about getting your authority, the last question you should be asking, is about factoring.
If you already have your authority, then only use a non recourse company.
The only one I know of is D&S, there may be others.
None recourse means, that you are not responsible, if the broker does not pay.
Also use factoring sparingly.
I would take quick pay before I would factor.
Reputable brokers, will have quickpay avalable. |
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GMAN
Joined: 13 Feb 2005
Posts: 9284
Location: Tennessee
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| Posted: Sat Mar 29, 2008 8:51 pm Post subject: |
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I agree with hoohaa on the non-recourse factoring. If you plan on factoring it is often less costly to go with a non-recourse factor. You need to read the contract very carefully. Some of the recourse factors can charge as much as 1% per week until the invoice is paid. You could wind up spending more for the factor fees with recourse than the other way around. D & S is one of the better known non-recourse factors.
Some brokers do offer a quick pay program. Rates can range from 1-8% or possibly more. |
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trinitron
Joined: 21 Sep 2007
Posts: 29
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| Posted: Sun Mar 30, 2008 6:28 am Post subject: |
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| Quick pay is just another term for non-recourse factoring. Same thing |
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GMAN
Joined: 13 Feb 2005
Posts: 9284
Location: Tennessee
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| Posted: Sun Mar 30, 2008 8:27 am Post subject: |
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| It is not uncommon for many industries to offer a discount if payment is received more quickly. For instance, there are companies who regularly offer a 2% cash discount for prepayment or if payment was made in 7 or 10 days from the date of the invoice. There are a few brokers who will pay within 24-48 hours for a 1-2% discount. If you need the money it is a good way to keep the cash flow going without giving away the farm. I would not pay any more than 2% for quick pay. If I had to pay more than that then I would factor the receivable. |
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Doghouse
Joined: 21 Mar 2007
Posts: 826
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| Posted: Mon Mar 31, 2008 3:39 pm Post subject: |
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Don't you just love the fact that the brokers charge the carrier extra to get your money quicker??? It's all crap,..these morons should pay as soon as delivery is completed.
I will only use a factoring company if I suspect the broker is a scab and has a poor pay history. Always go for non-recourse,...so you don't get back charged 60 days later,....when the scab broker who already got paid,......pulls a chew n' screw on you the carrier. |
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GMAN
Joined: 13 Feb 2005
Posts: 9284
Location: Tennessee
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| Posted: Mon Mar 31, 2008 4:49 pm Post subject: |
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I have a couple of people with whom I do business who sit down and write me a check when I present them my bills. I just picked up a check from one today. There are no discounts on either of them for paying quickly. The other guy will cut a check the day he receives my bills. He will either mail the check or if I want to pay for over night delivery he will put it in a FedEx or UPS envelope for me.
I have had a few brokers whom I have hauled military freight. Some want to charge as much as 8% to pay in about a week. The military pays within 24-72 hours. If you don't pay the quick pay fee then they want to hold your money for 30 days. That is ridiculous!!! I don't mind paying 1-2% if I can have the money in my account within 48 hours, but won't pay any more just to get my money early. If I need the money earlier then I will factor it and give the factor the 5% rather than give it to the broker.
I agree, I think these people need to pay the haul bill COD. It would really simplify things. I doubt that most brokers could stay in business if they had to pay the haul bill upon delivery. |
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Doghouse
Joined: 21 Mar 2007
Posts: 826
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| Posted: Mon Mar 31, 2008 5:03 pm Post subject: |
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Exactly Gman,..I have one shipper I haul for who pays me the moment I deliver,....I fax her the signed BOL and a check arrives at my home 4 days later. Then I drop the origional BOL in the mail to her and start over again. I also haul military loads and the broker takes 5% and then wires the money into my account within 24hrs.
I dont get why the brokers hang onto the money for up to 8 weeks. I personally won't haul for that kind of broker,...or I will non-recourse factor them,...just because I don't trust them.
I tend to lean towards the brokers as the biggest problems in the trucking industry,..even more so than high fuel and insurance prices. |
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BigRich
Joined: 26 Mar 2008
Posts: 4
Location: Miami Florida
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| Posted: Mon Mar 31, 2008 6:15 pm Post subject: |
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Ok, good info. Looks like no one really loves a broker or the fees. Im hoping to get enough cash reserve established to not need the quick pay or factoring companies, but might not have to much choice at first.
Ive been looking into CH Robinson which offers quick pay at a 1.5% fee.. How do you guys feel about that company??...do they pay well? |
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DD60
Joined: 04 Jun 2006
Posts: 468
Location: Rockwall,Tx
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| Posted: Mon Mar 31, 2008 8:17 pm Post subject: |
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Ive been looking into CH Robinson which offers quick pay at a 1.5% fee.. How do you guys feel about that company??...do they pay well?
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Ch robberson pays well when they really need a truck. |
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Rockatansky
Joined: 23 Feb 2008
Posts: 19
Location: Buckeye, AZ
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| Posted: Thu Apr 03, 2008 1:33 am Post subject: |
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GMAN wrote:
I have had a few brokers whom I have hauled military freight. Some want to charge as much as 8% to pay in about a week. The military pays within 24-72 hours. If you don't pay the quick pay fee then they want to hold your money for 30 days. That is ridiculous!!!
Where I come from, it's called being a thief! :evil:
That broker is making interest on that money.
Interest you could be making.
GMAN wrote: I don't mind paying 1-2% if I can have the money in my account within 48 hours, but won't pay any more just to get my money early. If I need the money earlier then I will factor it and give the factor the 5% rather than give it to the broker.
Good advice. |
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whoopNride
Joined: 12 Jan 2008
Posts: 16
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| Posted: Fri Apr 04, 2008 6:40 pm Post subject: |
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Ive been looking into CH Robinson which offers quick pay at a 1.5% fee.. How do you guys feel about that company??...do they pay well?
CH Robinson's money is good, by that I mean you will not have to worry about getting paid. As far as paying well, they are like any other broker. They will start out at the very bottom rate, if you jump on it (Your Bad) they will surely give it to ya. If they need to move a load ,then the ball is in your court, what you do with it is up to you.
Advice: Figure out what rate you need to make a profit and stick with it. Normally you can get that rate, although it will take some negociating. If not and you miss the load, So What, if I cant make what I need on it, I Dont Need IT.[/url] |
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merrick4
Joined: 08 Nov 2006
Posts: 865
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| Posted: Mon Apr 07, 2008 11:52 am Post subject: |
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I think the whole recourse vs non-recourse is a bit overblown. Depending on the amount, I am starting to lean towards a recourse factor. (not for me mind you as I don't factor enough)
For instance, I set my friend up with D&S factors. Admittedly things were getting tight for him with the increase in fuel. It's a lot harder to wait out for better rates if you have 14 drivers in trucks. They might not understand the wait times. Further I've found some wasteful spending which we are now trying to correct.
Anyway for the first month he did about $70,000 and the fee for the month was about $3500. I am now switching him to a recourse which will have him pay 2.5% instead of the 5%.
As for the recourse, if you do what you are supposed to do, that is check people's credit before you haul a load, then the recourse vs non-recourse shouldn't be an issue.
By the way full disclosure, I just signed up to become an agent for a factoring company. But they are looking for carriers that factor a large amount so I'm not trying to sell anything but just that I'd be open about that. |
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Bigmon
Joined: 13 Jan 2006
Posts: 686
Location: S. Cal.
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| Posted: Mon Apr 07, 2008 2:41 pm Post subject: |
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Merrick,
Can you clear up something I heard about factoring. I was told by a banker that non-recourse doesn't mean you're off the hook if they don't pay.
He said it means you still owe them but, they take it out of future invoices instead of the one that didn't pay. They also file a UCC lien against your business. Does this sound right?
BTW...iced coffee is now in CA at McDonalds. |
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