📈 Power DAT Board: Get 10% off for 12 months! Sign up here: Https://www.dat.com/power/2172421 ⛽ RTS Invoice Factoring and Fuel Discounts Get first 90 days for free: rtsinc.com/agent-company/never-stop-trucking
Thank you so much Enis. I have been looking high and low why not to use factoring. Almost everyone says use factoring, otherwise brokers and shippers might not pay you. I think the information you gave here is gold in terms of comparing the pros and cons of factoring. Thanks again
You are welcome. People falsely look at factoring companies as a payment guarantor. That is very from the actual truth. If the broker doesn't want to pay you, they will not pay you no matter whether you factor or not. Factoring company will charge you back if the broker does not pay them and at the end it will be all the same to you. I had more brokers not pay me when I was factoring than when I was not factoring.
Really good information here! I have been researching and it looks like the majority of owner operators have a factoring company, for obvious reasons. Lets say that as a dispatching company I want to help them with invoicing the factoring companies. Would you be able to make a video on the process of how to invoice factoring companies on behalf of the owner operators? Also, I read that factoring companies have to approve brokers before a carrier books a load, could you cover that process as well? There really seems to be 0 information out there on how to do this process, and this the only thing that's holding me back from starting to look for carriers, since I would like to provide that service for them. One last thing, is it necessary for a dispatching company to only charge once the carrier is paid by broker/factoring company? Or are we able to invoice the carriers with our own payment terms? From your experience, how do carriers prefer to pay? Hope you had a great Thanksgiving!
Hello, I would like to make a video about all these questions, since they really great... I will try to answer them too in one of the coming videos. But here are some answers really short... Yes, factoring company have to approve a broker every time you book a load. Dispatching companies have different policies as far as when to charge owner operators. Some of them wait until broker pay them, but in my opinion there is really no need for a long wait, especially since most OOs are using factoring companies, and they get paid within days. So, I don't see why you shouldn't be paid by the OO within 1-2 weeks after the delivery of the load.
How do I invoice a load if I am not going to factor the load. The broker wants the original BOL before payment can be paid. So do I mail the BOL? Do you create your own invoices?
I have use RTS in the past and they are the only ones I would recommend right now. Here is more info for you www.neverstoptruck.in/rts-invoice-factoring
It depends on the broker. You can expect fees anywhere from 2% to 5% and some brokers have even different "levels" depending on how fast they actually pay you. Keep in mind that, usually that turns out not to be true, because you have to take into account whether this is an ACH deposit or a check. Even with ACH it usually takes 3-4 days on top of what they are claiming. It's just their way to make you feel that you got a good deal, where at the end, they shortcut you for your money, and this actually works in their favor, not yours.
📈 Power DAT Board: Get 10% off for 12 months! Sign up here: Https://www.dat.com/power/2172421
⛽ RTS Invoice Factoring and Fuel Discounts Get first 90 days for free: rtsinc.com/agent-company/never-stop-trucking
Thank you so much Enis. I have been looking high and low why not to use factoring. Almost everyone says use factoring, otherwise brokers and shippers might not pay you. I think the information you gave here is gold in terms of comparing the pros and cons of factoring.
Thanks again
You are welcome. People falsely look at factoring companies as a payment guarantor. That is very from the actual truth. If the broker doesn't want to pay you, they will not pay you no matter whether you factor or not. Factoring company will charge you back if the broker does not pay them and at the end it will be all the same to you. I had more brokers not pay me when I was factoring than when I was not factoring.
Pure friendly advice.
Nice Spyder brooo .......
Really good information here! I have been researching and it looks like the majority of owner operators have a factoring company, for obvious reasons. Lets say that as a dispatching company I want to help them with invoicing the factoring companies. Would you be able to make a video on the process of how to invoice factoring companies on behalf of the owner operators? Also, I read that factoring companies have to approve brokers before a carrier books a load, could you cover that process as well? There really seems to be 0 information out there on how to do this process, and this the only thing that's holding me back from starting to look for carriers, since I would like to provide that service for them. One last thing, is it necessary for a dispatching company to only charge once the carrier is paid by broker/factoring company? Or are we able to invoice the carriers with our own payment terms? From your experience, how do carriers prefer to pay? Hope you had a great Thanksgiving!
Hello, I would like to make a video about all these questions, since they really great... I will try to answer them too in one of the coming videos. But here are some answers really short... Yes, factoring company have to approve a broker every time you book a load. Dispatching companies have different policies as far as when to charge owner operators. Some of them wait until broker pay them, but in my opinion there is really no need for a long wait, especially since most OOs are using factoring companies, and they get paid within days. So, I don't see why you shouldn't be paid by the OO within 1-2 weeks after the delivery of the load.
I am sharing my Google spread sheet truck planning schedule with you: th-cam.com/video/EJrAEPE2aKQ/w-d-xo.html
Thaaaank you so much. 🇲🇽🚛🇱🇷
How much % wise are owner operators being paid per load approximately Enis?
It all depends. If they are leased to authority, it can be anywhere from 90% to 70%
Do you need a factoring company for dispatching ? (How do the payments work)
You don't. You charge the carrier directly
How do I invoice a load if I am not going to factor the load. The broker wants the original BOL before payment can be paid. So do I mail the BOL? Do you create your own invoices?
I just made a video about that. Should be released next week. Most brokers will let you email them the invoice.
Which is the best factory company they percent 1%
I have use RTS in the past and they are the only ones I would recommend right now. Here is more info for you www.neverstoptruck.in/rts-invoice-factoring
I really appreciate your help thank you😊
I heard you say if you are using quick pay as long term solution, you might as well use a factoring company. What percent does quick pay charge?
It depends on the broker. You can expect fees anywhere from 2% to 5% and some brokers have even different "levels" depending on how fast they actually pay you. Keep in mind that, usually that turns out not to be true, because you have to take into account whether this is an ACH deposit or a check. Even with ACH it usually takes 3-4 days on top of what they are claiming. It's just their way to make you feel that you got a good deal, where at the end, they shortcut you for your money, and this actually works in their favor, not yours.
Great video!
Thanks!
Man I’m in information overload. Thank you for this video.
Glad it was helpful!