About to use Triumph Factoring. Anyone else using them? Info?

have a lawyer look over the contract. Look for the option to get out and if it is a contract where the factoring doesn't get paid, they can and will come back for their money after 60 or 90 days. Also many of them have charges for loading a fuel card, sending a paper check, sending an ACH transfer to your bank, etc. Those charges add up and many other factoring companies to compare before you choose one to work with. Some may even require you to factor every load with them. Try to use a factoring company only as a last resort the 5% looks cheap, but it is a 60% charge per year as the 5% is only for 14 to 30 days.

 

Unless you absolutely have to don't do it. They are just leaching off your hard earned money. Build up some savings and be your own operating fund. The percentage doesn't sound like much but that is off your gross revenue and it adds up. I have been broke and working three jobs just to eat but I can't imagine giving someone 4% of my gross earnings just so I can get paid faster than 30 or 60 days.

 

I have and do use a factoring agency for about 4 years. You do pay a cost for getting your money quicker.
I have recently been able to get short term loans from my local bank.
My cost for 5g for 30 days at bank is about $56. With the factor it is around $150.
I would recommend using other funding sources if possible. Definitely don't use a factor company that requires you to factor all your invoices.
Good luck.

 

Some features are similar with most factoring companies but there are also differences and outrolled features compare to the traditional factoring program. The factoring company should be your funding partner on your daily operation and support you as a back staff office, but also provide you with load search and assistance to grow your business, not just quick paying

 

I just got away from triumph business capital. It's a start up tool only. The money they take is by %. I was 3.99. I did the math. I was averaging 1000 to 1200 per month for myself and each of my other two oo trucks. The bank was very strict with things ( time in business, review of all financials) but I got my line of credit. Significantly cheaper.

I had no issues with Triumph, in fact my rep was great. We both knew this was only a stepping stone and was not permanent.

Money management, good credit etc are all in my opinion required to take it to the next level

 

Thank you for your reply. I am considering Triumph, merely as a stepping stone. My biggest issue is driver pay, while I build up a reserve. In the mean time, I'm working on putting myself in the best possible position for a line of credit.

Anyone else have experience with Triumph?

 

I would suggest TBS Factoring from Oklahoma City. I used them for four years and never really had a problem. Look at Love's Factoring also. The down side to factoring is you will have to continue to factor a given customer for the rest of the time. The plus side is you may give up 5% up front, but get paid in 48 hours and not have to worry about chasing down money after 30 days. Before you factor a customer, see if the broker (if you are using one) has a quick pay option. Usually this will be the same 5% or less to factor.

 

Orange Commercial Credit through NASTC