Whether you are dealing with D&S or another factor, it is a good idea to check with them prior to sending in the bills to make sure they will take the business. I don't factor all of my loads. If I plan on factoring something, I always check with factor first. I figure that if they won't take the broker or shipper, then I don't need to do business with them. I always keep a copy of the BOL just in case there is a problem or it gets lost. The nice thing about D&S is that you can see everything on line. If you want to know whether they have received the bills all you need do is call them or check their website. I believe some other factors have websites where you can check on your bills, whether they have been received or funded.

 

lately, I've factored very little. I've only used D&S, they are pretty good at taking care of any problems I've had with their service. When looking back over my history with factoring I was more than a little concerned over how much money I was wasting. I now use their credit check service routinely, I only factor those who take over 30 days to pay.

 

It is best to factor as little as possible. If you put money aside as you go along, it should not be too long before you can operate on you own money. That 5% really mounts up over time.

 

I'm not sure I'd consider that cheap. 5% roughly equates to a loan with an APR of 60%. That's getting into the realm of loan shark numbers :shock:

 

GMAN, I never ran a load without contacting D&S Factors first. If they would not approve the Broker then I'd pass on the load. The problem is when the Broker pays the line-haul and shorts D&S Factors on the accessorial charges, such as detention or lumper fee (which we stopped dealing with in early 2006). Eventhough, D&S Factors had the revised rate confirmation sheet that included detention and confirmed with the Broker, D&S Factors would short us from a future load and not tell us.

Two weeks ago, there was a problem with their computer software and direct deposit and they did not tell us anything. I found out after a few days when I checked my online bank statement and noticed that the deposits were not there that should have been there. When I checked with their system online, it showed the loads were processed. No one at D&S Factors contacted us. This is no way to do business.

D&S Factors reply was we don't have time to call people we are too busy. I guess I have plenty of time to constantly call them - like I have nothing else to do. I could never get the accounting dept, I would leave a message and I would either get a call back 3 to 4 hours later or no return call at all. After the first few times these kinds of things started happening, I began to cut back using their service.

Now they are holding my original BOLs hostage that have not been funded so I can't bill the Brokers directly and wait for payment. Most of these Brokers require the original and some I can just fax a copy of the BOL. They will not send release letters to the brokers that owe them money so that I can continue to do business with these brokers until all of the outstanding invoices from every Broker has paid them.

So now I am limited to running loads for 3 Brokers that I have never used D&S Factors with. They've basically have cornered us into a spot where I will have to find new Brokers to work with until they have had all outstanding invoices paid. The 3 Brokers have outbound freight but rarely have inbound freight.

 

Apex has never, never, ever done anything like that to us. Any time there is any sort of a glitch, our account rep, Brandy, calls us immediately. I don't factor because I don't have operating capitol. I pay a very very low rate. I credit check EVERYONE and if they aren't near gold, I don't haul for them. Apex has been a real blessing to us.

 

Today I discovered something about factoring that I did not realize when deciding to use them to factor some of my bills. D&S Factors and most other factoring companies put a freight lien on all of your bills even the ones that you have never factored before. The lien is only released when all invoices from every broker are paid in full.

Brokers that I am working with that I have never factored with D & S Factors, technically have a freight lien on them. D & S Factors is not aware of these Brokers so I can still run loads for these Brokers and bill them directly and receive payment from them. But, if D & S Factors finds out they can prevent us from getting paid until all outstanding frieght bills from every broker we've ever dealt with shows a zero invoice balance with D & S. We currently have $3,000 that we cannot get paid on eventhough the $3,000 does not involve Brokers with outstanding balances.

The only way around this is to factor to another company to get the funds released or stop operating until all invoices for D & S Factors have zero invoice amounts. Understand this does not have to do with having or not having money in the bank. We can not even pull frieght for any new Brokers because if D & S Factors discovers this, a freight lien can be implied.

So I guess I will have to shut down until all of the invoices are zeroed out before I can put my truck back on the road. It could take 60 days or more for this to happen.

 

Isn't D and S a nonrecourse factor?

 

Yes, DD60, D & S is non-recourse.

 

That fine print can be a booger :sad: