BigDiesel is right. By far an account with your business bank will cost much less than factoring. I had what my bank called a revolving acct. I could just write checks (supplied with acct.) and every month the payment due to the acct. was far less than what I would put back in. In other words if I used $10,000 in the month the payment due might be $816. Naturally I would try to put back what I used and disregarded the amount due. I once figured over a one year period how much this was costing and it was less than 1% and that was when interest was at a much higher rate. In a way your doing your own factoring thru your bank. As far as recourse goes, know your customer or check their credit.

I have been using a factoring company for 2 years now. And I say this based on experince: STAY AWAY FROM BIRD DOG/FOLEY SERVICES

you OTR guys cry about waiting 20 days or so to get paid lol. Dont buy a dump truck. Most of the time its 45days. Alot of people are 60. The longest i ever had to wait was 108days. I would love to get paid with in 30days. That would be great. Now when i work for the quarry they pay once a week. Its the contractors who you have to wait on.

Why go for Apex Capital Corp or some other organization straight away? I suggest you should spend some time shopping around and pick the best option only after doing some research. It’s also a great idea to ask your business bank if they can help you out.
Since you are already associated with them, you can expect them to offer you reasonable rates (if they are providing factoring solutions). Some factoring companies will, contrary to that, want to make as much money with you as possible. So, avoid giving them business so easily! There’re some exceptions though (the kind that are even better than banks).

Just like not all companies are the same, same applies to factoring companies. I am an agent actually for a factoring company (minimum of 5 trucks) and they are honest. They always wanted my own business as well but they always told me that they would love to have my business but if I can make it without them it's better. You can even in lieu of a reserve put a deposit down. For instance for me if I wanted to, for every $100,000 they want $5000 for deposit. Honestly sometimes I want to, I'd love to have the money in my bank than have so much owed to me. A bird I the hand...

But anyway check your credit with brokers/shippers and at least you'll be covered on that end.

Too many carriers don't know the right questions to ask and too many factoring companies will tell you what you want to hear to get your signature.

Factoring is a readily available solution to your cash flow crunch. Whether you’re waiting 30, 60, or even 90 days to get paid there is a freight factoring company for you. Check out some of these other benefits from the factoring companies we work with:
• Flexible Funding Structure
• No Required Term Contract
• Fast Approval - Usually Within 48 Hours
• Improve and Increase Your Cash Flow