If you stay in business long enough, you will lose some money. If you take care of the details, you can minimize the chance that you will have losses. You will NEVER take all of the risk out of doing business. You can limit your losses.

 

We factor most of our bills. We include the factoring cost in the rate that we get for each load. We don't tell the Broker that's what we are doing. I don't mind paying for peace of mind and it helps with the cash flow because something always comes up. You are paying for convenience.

 

I personally think if you have to factor to stay afloat your doing something wrong. Seems like your living week to week.

 

yeah i called yesterday to find out why she told me i could do quick pay then not do it..... she says she didnt know i wanted to do quick pay and since the load had already been done that i couldtn do it, she said i coud sign up for quick pay on future loads, i told her thats not how the discussion went and dont worry about it i wont be pulling any future loads for you

 

Steve,

I said the main reason why I factor is for peace of mind and I also said it helps with the cash flow for when things happen it create some cushion. So if I have to use my line of credit funds I can factor to replace those funds quickly. I also said that we do not factor every load. There are some brokers that we deal with and wait for payment. If it's a new broker, I like to see how they pay.

I did not say we use a factoring company to stay afloat. My wife and I are doing things correctly, our bills are being paid on time, and we are able to get the truck repaired when we need to and we sleep pretty good a night!

 

General Electric uses factoring. In fact, they are one of the biggest users in the US.

 

Seems like a waste of money. If I were to factor I could make a car payment and insurance on a brand new Mustang GT for what I would pay out each week to a factoring company.

I really doubt that anyone who factors has a maintenance account to rebuild an engine or deal with a catastrophic failure.

I pull in on the average $4,200 a week and with a factoring company taking 3% that's $504.00 per month that would be thrown away.

I don't see any rational excuse for factoring other than someone starting out. If you've been on your own for over a year and still factoring, something is wrong or you just like throwing away money at the end of every month.

 

Steve,

I'm the wife and part owner of Joymax Transportation and it sounds like your very narrow minded in your thinking and very opinionated. Should I need an engine repair, I have enough money to get it repaired. If you bill the fee into your rate, your not paying for it, the Shipper or Broker is. As long as I am meeting my profit and cpm numbers per load, I'm satisfied with that. I have BS in Computer Science and a Masters Degree in Business and have saved Corporate 500 companies thousands of dollars over the past 30 years. We don't avg per week what you avg per week but we are not far behind. We choose not to do all 48 instead we service 18 states strategically. We don't run for fuel and we don't sit and wait for days for a good paying load while loosing money sitting. We strategically go into areas where the freight is and there are not many trucks. Commanding the dollars that we want.

You need to learn something about business and finance management. I'll be glad to recommend some books so that you can get a better education than what your assumptions are showing you.

It's a personal preference not a necessity!

 

Maybe your right. You seem to have your finger on the pulse for sure. Did you get your degree from Faber?

 

No, I got my degrees from Pace University in New York. Check the Forbes listing for their stats.