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How I get PAID as a hotshot - Factoring explained
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- เผยแพร่เมื่อ 26 ต.ค. 2020
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I factored over $4 Million and saved thousands on fuel with RTS, they are simply the best!
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When I creep past 10% monthly gross out on billing I hire my mom to send fake collection attourney letters out. Shes a professional at making it look legit all she does is put our real estate attorney's office name on it and just changes real estate to collections. It hasnt failed me yet!
You certainly don't believe in the Fifth Amendment to the Constitution, Sir. That is illegal and it might get you in tons of trouble.
Until you find a company that doesn't care. We had 1 where it took our factoring company going to court over unpaid invoices.
@@Stephen-carr ehh if they really dont want to pay me on a car it's not the end of the world. Very rarely do individual cars pay enough to hurt the pockets and full truck loads of cars are far a few between.
@@carlosd.martinez1962 I believe it's illegal but how is it against the 5th?
I used TBS out of Oklahoma City. They changed me 2% to start. Then after 90 days they charged me 1% per factor not per invoice and didn't matter how many invoices you sent being one at a time or 10 at a time it was always the same.
As usual, another great video explaining the nuts and bolts of our business. When I decided I was going to hot shot, I saved and saved and saved...bought a truck, new trailer and everything I needed to start. And decided I wanted to receive 100% of the money I earned. So there was cash set aside to tide me over till the checks started rolling in. Typically most pay just shy of the 30 days, and some as quick as 14 - 16 days. After the first month, there's a steady income provided you worked the month before. And the % I saved can be reinvested in MY business, not someone else's. I'm about to sign up with RTS for their fuel card, but will triple check the fine print.
I like when you go in depth Alex it’s very helpful to see all the ups and downs of aspects some of us wouldn’t even maybe think of. Thx for all the great content!!!
You can try “we transfer” when you have to send a document that’s bigger than 10mb.
👍"... But wait, there's more..."
Lol
Personally I like your break down vids. Most of the time I finish watching & end up thinking, I didn't know that! (But now I do 👍🏻)
Love the thorough breakdowns of the trucking business! Keep it up!
Nice interesting video! I like the idea of those factoring companies. Here a company has up to3 months to pay your invoice....
Factoring is a bad idea in the long run. Once you start, you can never stop as it will stop your cash inflows for a while
This is awesome info! Thanks for all that you do helping those newbies getting in like me!!!
Send it registered mail and make them sign for it then they can’t say they didn’t get it
I love all videos that are informative keep it up let’s go. Maybe how to strap or the preliminary inspection. Before you drive.
Hey Alex, You sure Learned a lot on the trucking industry from the first time you started this adventure. I wish I was your neighbor, I would keep your fleet washed and waxed and do your interior also. Stay safe my friend.
Great 👍 information, I had a similar experience, The factoring company that I factor with they requested to send them the original BOL by mail. No PDF or email that was crazy but by the end of day I got paid.
Great informative video as usual man! As always thanks for taking your time out to do these videos and be safe!! 👍✌️
I appreciate all the back office information you can give.
I used RTS for 6 months fuel card, factoring has been great not one problem app super easy to use... recommend to anyone... great info Alex keep up the vlog...
I love the knowledge sir ! Wish I lived closer so I can have more hands on !! But thanks for breaking it all down the way you do !!
Great info. Who doesn't appreciate free, useful information and gives Alex a thumbs down? Please explain yourselves. Do you know more? Better info? C'mon folks
I love the breakdown videos!!
Hey Alex, I watch all your videos, great info, but just wondering do you guys use paper logs or LED’s, maybe do a video that. Thanks
Hello, Holiday you & yours, 12-23-2020, Alex, I am trying to learn about Factoring, this is new to me. Our family or company ran a Cash on deposit. We did have that 41 yrs ago. I WAS the Collector, I did like the Job, but it could not write it off. It was Cash only unless they were known by my Dad or Grandpa, then we waited 30 days. They had good Customers. CSE
My factoring company is TAFS, Inc. I don't use the factoring to get paid fast, and they do pay fast. I use it for the credit check of brokers.
When you use it, it either give the green light, yellow light, or red light. I only accept factored jobs from green lights because they are saying these people will pay.
I don't do yellow lights or red lights, even if they offer to prepay. Too much risk, and I'm not willing to take that much risk.
Lol and auto brokers are still in the wild west of central dispatch where if you pay enough you dont get negative ratings.
I just started with tafs.. Did you get charged $125 for first invoice!?? They took my $150 no truck load invoice saying something about a fee. And is there a contract!? I just signed whatever
Great video Alex. Keepem coming
Very good business video must person getting into smb and owner operator needs to understand this. Just driving from point A to B is one thing, but how to run the business and invoicing is another complete thing
Use you bank. The APR from factoring companies is close to or north of 20 per cent. 1.5% 2% 3% 4% on a 30 day invoice is a APR of 18% 24% 36%. 48% and they still have recourse for bad debtors. WTF. If your bank won't float you out to 30/60/90 days maybe you are not ready to be in business. Would you consider using a credit card that charged you north of 20%.? If your answer is yes then your business plan is a no.
Explain how you can use a bank to get your money from a broker? It's a outside company that gets loads from a shipping company.
@@keithhamilton5581 You want to explain how banks work?.... OK the basic premise is they take desposits in from people and business's and pay them a small amount of interest. They also borrow money from the federal reserve at low rates. They then lend those deposits to credit worthy people at a higher interest rate. Let me know if you need to know how brokers work.
@@downunderjuice What a shipper broker gives (bol/pod)you isn't worth anything to a bank for them to give you an loan or money for a piece of paper. So tell me how do you get a bank to pay you for a load delivered. An wait for payment on it from 30 to 50 days.?
A bank wants collateral for ALL loans
@@keithhamilton5581 Thank you for making my point. I didn't suggest you sell you paper to a bank. I suggested in a way you didn't comprehend that you make sure you have enough money or a line of credit to fund your business without using payday lending. AKA a factoring company. Can I clear up anything else for you?
Great information Alex! Thanks
Thank you for this! much love
Good info. It’s not all glamour. ;). You never explained the Police stop with new Dodge... people get upset on prepayment. But it’s better to not take the load. But I’m semi retired. COD otherwise. Ok few I know. I did a government trip. PITA
I only haul for net 7 or prepaid.
I never give away my money to factoring for no reason.
I try to avoid the DAT and truckstop load board at all costs.
It also just cuts into your profit for no reason whatsoever
Hi Alex. Do you know anyone that's hot shoting up in Canada? I enjoy you're videos. Keep up the interesting work!
You could have explained about the "fuel card" from the factoring co. !
I love these types of videos! I'm looking to become an owner/opp and these videos give me the knowledge of whether it's a smart move or not. Thank you!
Alex... can you do a video on how the sale on the OG RAM came out ?? is craigslist the best way to sale anything???? please respond..
Is Craigslist still around. Haven't used it in years
I'm going from route 66 and I40 going from Albuquerque NM to Colorado springs with a 8x16.
Willing to deliver on time
I'm a total newb at this hot shot trucking and when i finally get my first load i'd like to get paid on time. Is there any way you can do a front to back for the complete newbie on how to submit to whomever on how to get paid...? So example, from broker call , to pickup, to BOL, to delivery then i'm assuming invoicing from what i've been hearing etc etc. Thanks, love the vids.
Nice!! A major factor in doing business.... :-)
Really good info Alex. Can you share your CPA and insurance too.
You are looking very "corporate" with your embroidered polo shirt.
Did you hear,factoring company had him call the broker, factoring company doesn’t really do there job,
I have 13 yrs of Commercial Driving , both OTR & LOCAL , but am stepping out on Faith with transitioning to Hot Shot Owner Operator. Is it better , being new to this level of CDL trucking , to lease on a dually to a company to learn the game or start out with truck & trailer on my own ?
Really depends on what your goals are
I SEE THE TP TEE SHIRT 👔 LOOOKS GOID MAN
Thanks for this. Factoring has always been confusing to me!
Great information
Great info.
What is the best factoring company in your opinion?
Thank you for all the great content!
Alex could you tell & show the steps of the paper work that someone would do before, during, and after doing a load (example ) THANKS
A reset. My big question is: where do you sleep? In your seat with it leaned back?
I've done it a few times but i couldn't imagine for days on end. I think he's too tall to lay down in the back across. I bet he puts his seat forward so he can stick his feet off the bed
Perfect, loving it. Not sure if it's too intrusive, but what's the process or is there a video about once u get a load and then doing all the carrier packet stuff?
Awsome content
Just got on board with RTS. They never mentioned anything about the termination fee😳
They never do lol but I’m also with them
Can you go over invoicing, and carrier packets... how that works
Need to dial that top button down one notch there big shoots.
Which companies do you use for your ELDs and factoring?
Very helpful video
RTS still invoice them on your behalf even if they want factor it at not cost
WE NEED AN UPDATE ON RTS FACTORING
It’s amazing, currently factoring 200k+ through then
Like the new Polo swag! But the hair sticking up in the back isn't very business like ! Just saying ....but alway entertaining and informative 👌
I get it. I can't wait two days for $20 on cashapp. $18.35 now
How unfortunate having so many hands involved in getting a payment and everybody is cutting into the pie along the way, while you’re having to do all the work and pay to keep the pulling equipment working while they just push paper. The transporter is at the bottom of the food chain and therefore gets exploited by everybody above skimming money off the top. This is a good enough reason for me not to be consider ever being a transporter or any other earning opportunity where anybody from anywhere can do whatever to processing my payment, after I did all the actual work with my money. Meanwhile the costs keep adding up and these parasites find new ways to screw people at the bottom.
Just don't factor the invoices or use a broker, then you collect all of the funds.
@@brad9872 factoring is just one of way too many layers of paper pusher parasites eating away at the payment
Lol, they all provide a service. Don't use the paper pushers if you don't want the service.
Sounds like a great reason to find direct loads with terms you don’t need to factor.
LOL this is telling every OO, that its time to get together, stop the crap, and combine, START YOUR OWN BROKERAGE, STOP GETTING INSURANCE FROM COMPANY'S, FORM A COILITION WITH OTHER'S , AND BECOME SELF INSURED. AQUIRE 1MILLION BONDS FOR IT. look into it and doit your self.
TP should stand for Toilet Paper because you're always going through some $hi+
Great content and videos positive energy and knowledge. Glad to be able to see the reality of the hotshot side.
Lmao 🤣
everyone is gangsta until shipper doesn't pay
Now I know what factorying is thanks
Do you guys know how long it takes to get a duplicate title in Texas, I lost my trailer title and I moved to a different state?
Alex any suggestions which factoring company to go with when starting out?
9 years in business now. I never factor. Yes i have to wait sometimes 60 to 90 days. But i budget according. I will be damn if im just gonna give up money i worked for.
is hot shotting as an invstor (owning truck, dot company etc and hiring drivers) feasible? i never see anyone talking from the perspective of an investor as i see people talking about big rig trucking as an investor with drivers
Very helpful
Let’s make it all PREPAYMENT
everyone has there hand out in the trucking industry. Ask yourself. How can you put all the money in your pocket and cut out the middle men? 2% or 3% off the TOP is a lot of money, especially over a years time.
this^ 4% of gross is alot more than 4% of profit.. if you only take home 30% of gross that 3% or 4% quickly becomes 10% or more of your profit... then stack every other middle men and convenience charge on top of that next thing you know 50% of your profit is spent on the road
get a line of credit be paying less than 6% interest yearly and you only pay that percentage when you need the money and for the duration you need it.. might be paying several percent to get paid quickly and then not even need that money until the 30day point
Fax machine resolves email issues.
You should put a list together of bad companies that don’t pay.. on you website.. please do that…
I have a question.
When you’re on the load board, is the quote listed the driver pay? Or is broker fees already taken out?
What they quote on the load board is with their cut already taken out. No way they'd ever let you know what the shipper is paying on the load.
It's what they are offering. I often request the original paperwork agreement between the shipper and receiver which includes the shipping rate. If a broker won't supply that info, I won't haul it.
@@Stephen-carr how often do they deny that info?
@@Stephen-carr if they wont supply that info you wont haul it... do you really stick to that rule though.. when theres no loads and youre gonna lose your shirt on fuel costs if you dont pick up the load theyre offering do you really turn them down for denying that paperwork?
Interesting, only been watching for about a month so don't know if you covered it, can you go over how much actually you get at the end of the year/load? Example- you might show you get 2000$ for lets say 800 miles, do you get 2000$ or do you pay that 30% tax on that(state/fed), does your broker take a %, the guy finding a load take a %, do you use that towards gas, obviously a few bucks go to food/drinks/a shower, and so on. Is is it more like 1000 or more like 2000
What’s the trucking software option?
Thank you for your video my question what type of driving license we can use in Hotshot Trucks
Regular license if you haul max 3cars less 26.000pounds
Hi Alex, those company's that wait 90 days, all their doing is sitting on all the cash collecting the interest, make money to get money, to pay out. thats the only reason that they do it. Now on the other hand, Govenment pay out is very different. Way too much paperwork and dept's involved to collect and pay out. A Factoring Company, equals too a PAYDAY LOAN. My queston is WHY??
have you looked into the factoring offered by truckstop? I have looked around the internet and cant seem to find a lot of information about there factoring service
They’re crap. I used them before
Alex how much is too much to pay for factoring? Like what percentage is too high to give them.
whats a good factoring company? and can you gewt a company that dispatches you and factors you?
I neaver have trouble getting my money 17 years as a repoman I will take them to court in a Hart beat.
Does it feel like using a factoring company is a bit like getting a paycheck loan or paying HR Block for a "Rapid Refund"? You're paying a fee in order to get money asap. You could make more money by waiting a bit of time to get the money.
You got to use a factoring company unless you have $$$$$$ to hold you over. Net 30, 45, 60🤮. I use truck stop factoring they been great 👍
What do you think about DAT?
Good morning ☀️
Ny first invoice with tafs took $150 is that suppose to be right!? They said its 1 time thingy
Alex in the trucking business does it exist like in my business if you get paid early they take a percentage off let me know
I've never heard off such.... maybe incentives to hit deadlines
RTS is great!
What happens when a customer refuses to pay b/c it was late or received damaged? Do factoring companies come in then?
The customer can’t refuse to pay. Unless the value of the damage that needs repaired is higher then the delivery fee
What happens when you hire a factoring company and the shipper doesn’t pay the broker? Who takes the loss?
I don’t that that ever happens
How can I reach you I'm a cdl class a in dallas I would like to do what your doing
We use smart frieght funding love them no contract don't have to find everything with them of you don't they have a fuel card low %they keep very friendly small enough so they will learn your name an we runs several trucks and have never had a problem getting paid
And they pay in 24 hours
So do they rate you on credit or just the brokers?
Alex did you ever eat falafel 🧆 or shawarma
do you get cod every time with your factoring company
Keep em coming, imagine cruising in the freeway and watching Alex talking to his dashcam camera with hand movements and everything, shouts out from Cali!! BIDEN2020
Biden 2020 means $4 fuel !!
@@joelocker3508 shit hopefuly not.
@@conservativepersonnel8458 it was when he was vice president
joe "47 years" biden
He is parked. Biden? Elder abuse. He won’t last 2 months. Now who is President? Who is VP?
"I'm thinking, 'How bad can it be?'"
Well, I guess you found out. You must have a creative imagination before entering into these business agreements.
But, realize that the Factoring company is putting several hours into each invoice to get paid in a timely manner. That is a real business expense for them.
What happens if the broker doesn’t pay the factoring company? Does the factoring company go after you?
There are two types of factoring agreements. Under a "Recourse" agreement, if the broker does not pay the factoring company, the factoring company will charge the invoice back to the trucker i.e. take back the advance given plus a fee. Most (but not all) factoring companies these days are "Non-Recourse" factoring. Under Non Recourse factoring agreements, the factor assumes the credit risk if the broker does not pay them. In other words, there is "no recourse" back to the trucker if the invoice is never paid by the broker. My advice ONLY work with factoring companies who are NON Recourse and do not lock you into a one year contract.
Hey Alex, How do I apply for your company ?
Alex. I have some information id like to share with you that could really help your company. It has help me massively. Respond and let me know how we can get in touch. It involves fuel drug testing and more options.