Factoring Companies That You Recommend For Owner Operators?
Discussion in 'Ask An Owner Operator' started by SlimGoodyNC, Jul 18, 2024.
Page 3 of 5

Siinman, Oxbow, FloridaRetired and 1 other person Thank this.

Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.

Siinman and FloridaRetired Thank this.


But then we can say that it is like factoring $1,200 000 for the cost of $24 000 on a yearly basis, which does not look that bad for practical purposes. But yeah, no matter how you slice it, definitely better to keep that money in your pockets.77fib77 Thanks this. 
Imagine. You take a loan for one load. Your customer (direct shippy or broker# will pay off that loan after 30 days. And bank took 2% for that. You took the money for 1/12 of a year for 2%. That makes 24% yearly. 
Siinman Thanks this.

Now, when you say 24%, it does not correspond to anything practical. 
Practically, If I am to wait 60  90 days for $50 000 worth of invoices to be paid and have the cash flow drying out, $49 000 on my hand can get me ahead. I don't care if that forfeited 1 grand results from a 2% or 24% calculation, it is going to be $1 000 for all practical purposes.
I don't care about nor need factoring or whatever just wondering why trying to make it look more complicated than it needs to be. Other than that, I fully agree, better not to factor than to factor, if you have enough cash.Last edited: Jul 23, 2024

Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 3 of 5