Why you should and should not use a factoring service
- Do you have the means to receive a paper check in the mail and cash the check without interfering with getting loads done by going home?
- If yes to number one then do you have access to money that will last you until you get paid from brokers that on average take 35 days to get paid from.
- You plan to grow your company one truck at a time only as cash flow allows.
- If yes to number one, two, and three then stop reading this post, factoring is not for you.
An alternative to factoring and what I like the most is using credit cards for cash flow. This usually works best for those with one truck, little debt, and an average credit score. I have used credit cards from the beginning even to buy my first truck, and just today my wife used free reward miles from business expenses to purchase 3 tickets to Japan.
I have two main factors for recommending a factoring service
- Factoring can be an option for owner-operators that are ready to get their authority but are finding it difficult to save a 35 day supply of money compared to staying leased to a company – getting paid a dollar plus fuel surcharge.
- If I am ever awarded a project that would require five or more trucks I would look at using a factoring service and would recommend it to others that have rapid growth. You don't have to use it forever.
I have chosen Triumph
- Triumph is the official factoring partner of DAT, the largest load board in the country.
- When you see the checkmark by a broker's name on DAT, that means the load is preapproved for factoring. No guesswork.
- If Triumph ever participated in unethical practices, then they would not be on the DAT load board.
- Triumph is among one of the largest factoring companies. If you plan to add more trucks and get better rates, you want an established company that isn’t going anywhere, and one that helps its clients scale.
Working with Triumph is more like quick-pay from a broker. You don't have to factor all your loads. This makes it incredibly simple to wean your company off factoring when you are ready.
I started this page to provide resources and tips to help truckers maintain and grow their businesses. Signing up through rpmquickpay.com lets them know that you’re coming from this group of supportive, informed people.
I have met the CEO of Triumph Business Capital, and I have conducted interviews with senior management in my own hometown. My name is on it, I’ve done my homework.
Sign up using rpmquickpay.com or call the number at the top. Our rep is Mac Greene. 469-312-7188