Factoring Companies Requirements

Factoring Companies Requirements
Posted: Tue Oct 3, 2006 8:55:40 PM

Okay so everyone knows that is a Federal Law that you can only use ONE factoring company.

Right? Wrong!!!! If this is so some will need to provide a CFR(code of federal regulations) that specifically states that.

Sending the same bills to be factored to 2 different factoring companies at the same time is FRAUD and so we don't do that. Or end up in alot of trouble.

It is propaganda and misinformation perpetrated by the factoring companies that want way to much personal information and require that you pay them $125 or more to quit using their services with their "Exclusive" contracts.

Who are they selling all that information to anyway?

It's like saying that if you don't like Bank of America and want to do business at Wells Fargo you have to pay B of A to not bank there any more.

REALLY read those factor contracts. The bigger they are the more loop holes the are built into them and the more the will try and chisel every dime they can from you.

When the factoring companies start asking for personal information that is a matter of public record ie: articles of incorporation they are just trying to get you to do their work for them. Of course one might ask, "Do they really need this type of information?"

If they need extensive personal information of this deep a nature right off the bat then they are already expecting to have to worm their way out of some questionable charge. All though it may be perfectly legal and they will be really nice about it, is it right? It depends on your point of view. [Upright or bent over!]

Want to use a no-nonsense Factoring company try D and S Factors from Idaho. Straight up and 5% with $1 ACH charges. Personally after attempting to deal with TBS factors I will NOT have anything to do with them. Some of you may find them perfectly acceptable. I do not.

So if you are 100% convinced that the Federal Law requires you to only use one factoring company in the trucking business PLEASE post the CFR (code of federal regulations) number here. Not something that is sort of close but something that specifically states just that.

If it can't be produced then I GUESS you all been Bu*L SH*t*d AGAIN!

RE:Factoring Companies Requirements
Posted: Sun Oct 8, 2006 12:51:49 AM

Gregg,

Hello.   I like your attitude...Having been a Driver for 11 years, and being a self proclaimed expert at it,  I know there is something I can learn new every day.  I have been researching the idea of brokerage training, and in my research is where I first heard the term factoring.  Not really too sure what it is yet but I'll figure it out.  I agree with you in that the most if not all Trucking Co's are out to squeeze every bit they can out of a driver and his equipment.   Even a Co. driver like myself,  dispatchers are always pushing you over the legal limit to the next load... I swear they  make a commission on each one. Any way, Good luck to you and be safe out there..

Bradley >    aka >   ksredrooster

RE:Factoring Companies Requirements
Posted: Wed Oct 11, 2006 6:11:12 AM

If you are an OO and getting your loads through a broker they ARE making money off every load. Factoring companies have been around for a long time. They buy accounts receivable, it doesn't have to come from the trucking industry. You see there are only about 35-40% of us that actually do any work any more. The rest just stand around with their hand out and can do so because they vote and get the elected officials to pass laws that allow them to do this. I don't mind a broker making 10-15% of the load and 5% for the factoring companies that will pay you pretty much immediately for your load and then they take the slow or non-payment risk. Although some of the factoring companies charge more and come back at you for slow or non payment. It is the risk they (factoring) companies take when they buy the receivables. The problem I have is the level of information that some of these factoring companies want. I am not saying that they do this but they can sell this info and then someone can get it and book a load, get an advance and then re-broker it and just take the advance money. Lately I have heard of this as the Fresno Scam. Now that I have posted this you can bet there are some out there that are going to try this. And so it goes.