Truckstop factoring

I signed up with them at the start of 2020 , when it was slow as hell. The idea was that I'd put them on a back burner for any obscure, little broker they approve, who otherwise I would not feel comfortable to deal with. It was also 2.99%, no recourse, no need to factor all the brokers, kind of relaxed contract that is actually short enough to read and understand.
I never used it. I never found broker I'd be too shy with and after 6 months or so they suspended my account due to no activity. But this is the factoring, I would use, if ever, because of plain and simple rules.

 

You don’t need it. No point in doing even a little dance with the devil.

 

Are you rapidly expanding or something? If not, it’s not worth the squeeze. 3% isn’t good either. There are way cheaper options out there if you decide you want to factor.

 

And not to change the subject but my little brokerage we’re going to quit doing quick pay now. The scammers always utilize those methods to do their fraud. Just got screwed over $1000 where someone stole the identity of a broker and carrier and shafted us.

I understand your concern though. I normally look at how long the company has been in business, how old/long they held the same surety, days to pay, credit score in dat, etc.

Far as factoring if you get screwed don’t they take your money back anyway? They probably are good at checking credit but if it’s fraud then that’s not going to help anything.

 

Why does this always happen when someone asks about factoring? If you don't factor, that's fine, but why jump all over those who ask?

I factor.
If you do, I don't care
If you don't, still don't care.
I'm not worried about anybody else's situation financially, and finances are not always a person's reason for factoring.

I can afford to not factor. I still choose to do so. Ease of operation for me. Well worth it, for me, doesn't have to be for everyone.

I haven't used Truckstop, but do have one I could recommend if needed.

 

My factoring is at 2% flat. I drive Mon-Fr, work on my trucks during the weekend and do paperwork on Sunday nights.
There is no time for me or desire to chase payments. Hiring someone just to do that work is also not an option.

Also factoring allows me to book great loads from some no name brokers, who I otherwise wouldn't touch.

I don't factor with just really quick paying brokers. But then again, I get so busy, that sometimes I even forget about sending/checking invoices for non factored loads. Maybe if I can get my wife do the paperwork and call on payments, I will stop factoring, but so far it's been working great for me.

For one truck operation factoring is not worth it really, unless you do just 5-10 longest paying brokers and get access to their credit check program as a bonus

 

For what it's worth, this is not a good reason to factor. Any outfit that offers you a dirt cheap deal, is also going to charge extra for too many days to collect. 45 to 60 as a rule. That is, if they don't just charge it back to you at some point, usually when you get beyond 60 days. Too much of that, and the factor is likely to fire you as a customer. They know when you're using them as a deadbeat dumping ground, and you won't earn a lot of good faith doing business like that.

Another thing: factoring does not absolve you from owning the invoice. That is, other than straight collections, ie "getting paid," you will still be the point man to resolve any claims or disputes that may be created as a way to slow down the check. Slow paying brokers tend to be "hands on" in all other aspects of the load as well. If they aren't paying their bills on time, maybe they operate in a less than ideal fashion when it comes to anything else? Like answering their phone, for example?

Also a good time for a reminder: non-recourse only protects you against broker insolvency, not claims or deadbeats. There are as many reasons for a broker not to pay, either in full or part, as there are pages in the contract you signed. Their refusal to pay, in most cases, does not let you off the hook with your factoring company.

Getting back to that mention I made about good faith: if this sort of thing happens once in a while, your factoring company will behave like a partner and work with you to get it settled. Otherwise they'll just notify you it's uncollectible and what date it will be deducted from your reserve account. Making it your problem again, without any assistance doing the collection tasks, and you'll still be out the fee since you held the money while all that plays out.