WHICH IS THE CHEAPEST FACTORING COMPANY? AND WHAT IS THE PERCENTAGE?

I personally don't use any factoring companies. I have a personal credit line up to 8k if needed, but very seldom use.

Most of the factoring companies charge like 4%, don't they? That's what a friend told me Triumph Capital charges him. Plus, he's still on the hook for the money if the broker/shipper doesn't pay. A quickpay option at 1.5% to 2% is better than that.

 

For the one truck operation the cheapest I have seen was 2.5% for non recourse. When your weekly gross goes over $400k (multiple trucks), it drops down to 1% or so

 

I use to use TBS Factoring out of Oklahoma City. They charge 5% non-recourse and you will have your money in 48 hours. However, you would do just as well to book with brokers that offer quick pay, which is generally 3% to 5% of your line haul and the money is paid in 48 hours. The problem with factoring is that you will always be obligated to the factoring company every time you use that particular broker that was factored.
Now if the line haul was less than $1000, I would wait the 30 days if I had other money coming in. But be sure to follow up on money that goes the 30 days, because the broker will try to out wait you and avoid paying. Amazing how many times my wife called the broker about the check to be told, "We put that in the mail last Friday", only to have the check arrive a few days after she called.

 

Yeppers. There are certain brokers I know I won't be paid for 37 to 45 days by paper check.

They're usually on short loads though where the rate is under 1k, so it's no biggie.

If possible, I utilize the ACH direct deposit option instead of a paper check on net30 accounts. That way they can't tell you the "check is in tge mail" bs they pull.

While I'm at, if I have a slow play acct, I will utilize the broker agent to use his influence and contacts in the office to move things forward by shaming him in the process

 

Careful with that non-recourse thing. I was really pushing a few solicitors for answers, including Triumph (the one linked to DAT board) that it is only non-recourse when a delinquent files for bankruptcy. If it just simply refuses to pay and they can't collect after some contractual time (60,80, 90 days or so) then they will come back to you demanding money back and perhaps cost of collection attempts.
So it is important to have them explain firmly what the non-recourse means in their terms. I don't use them, factoring leeches. I loathe them, just like credit cards.

There are quick pays available at the most brokerages. Even without it, I wait for my money, sent via regular mail, no more than a month so far. Sorry to say that but If it is only one truck operation, factoring is a solution for perhaps poor and destitute owner operators, and I hope they will get their finances better and kill those bloodsuckers in the arse.
For instance, After I got my MC# Triumph offered me a non-recuse (but not unconditional) for 4.99%. I am at about 100K gross revenue so far this year. So 5K would have been kissed good bye, already. To have 5K or not to have? and we still have 4 juicy months ahead of us.

 

I really haven't had many problems trying to collect. Nor, have I had too many who drag it out so long (45 days) that I'm calling them.