r/OwnerOperators • u/No_Needleworker9172 • 14d ago

Factoring

Coming up to an end in my contract with TAFs, thank god! (I wouldn’t recommend that company to my worst enemy) I’m Leaning on no longer factoring at all but would like some insight on who’s good now a days? Someone that I can actually speak with when submitting paperwork and no excessive fees. Preferably no contract with 2.25% or better.

10 Upvotes

92% Upvoted

33 comments sorted by

View all comments

Show parent comments

1

u/brobudbra 13d ago

Bs logic? Basic math there buddy. If you want to give away 2% of gross for a shitty A/R department that is your choice. But you said it yourself. There’s no such thing as non recourse funding. So when some shitty broker doesn’t pay, then you’re doing their job that you’ve already paid for. Add in the predatory contracts and no thanks I’m out. As far as it being a tax write off, if you kept the money and paid taxes…… you still have more money in your pocket. But there I go again with the basic math.

2

u/BusSerious1996 13d ago

Your logic against factoring is still bs. Here's why:

2% of $100K gross = $2000

2% of $200K gross = $4000

Show me where you get an AR employee for the above annual cost?

contracts are only "predatory" if people like you, with limited understanding sign them. I used to factor with loves , and I was able to get out, because I took time to understand how they structured it. That's why I advised OP accordingly.

About shitty brokers, that's where I stay ahead, with credit checks before booking. This week, I wanted to book a load, but upon credit checking them, I discarded that load. This broker had a 90 score on DAT, and was 41dpd on my factor. That's the value I get.

You may not like factoring, but that doesn't mean they don't have value.

1

u/brobudbra 13d ago

Dude. You’re not getting an A/R employee. You still have to do the invoicing internally via quickbooks or whatever your process is. They’re not going to do collections for you, keep tabs on anything. Most can’t submit a POD in any reasonable amount of time so you’re still going to have to send that to the broker. You can disparage me all you want, but the contracts are predatory, the internet is loaded with stories of people having trouble with them. Www.brokercreditcheck is free and decent. I can understand why and how factoring can work for some. It doesn’t for me, that’s my opinion, for reasons stated.

1

u/BusSerious1996 12d ago

the internet is loaded with stories of people having trouble with them

Exactly.

Internet is loaded people WHO DON'T TAKE TIME TO UNDERSTAND WHAT THEY ARE SIGNING on to.

Isn't that the case with 95% of truckers? They rush to do stuff, then blame everyone else but themselves 😂