FACTORING ?
 

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 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.

Re: FACTORING ?
 

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.

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.

Quick pay is just another term for non-recourse factoring. Same thing

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.

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.

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.

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.

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?