Trucking: Why You Need a Factoring Company | Factoring Explained in 5 Minutes

[@TruckingFromScratch]

👕 Get your Mind Your Trucking Business T-Shirt: truckingfromscratch.myshopify.com

[@93kf]

could i operate under your company as a startup independent operator?

[@jthegreat3627]

I began watching you about 2 years ago and this weekend I’m driving to go and pick up my first truck of many. I want to thank you for the endless motivation and information you’ve provided me, you’ve been a major part of my journey. Good luck and God bless brother 💯🤞🏽

[@TruckingFromScratch]

That’s dope man, congratulations

[@thesulemaniqbal]

My all question answer in just 5 minutes, Great explanation!

[@tgmmicky]

Outstanding. Straight to the point and legit. God bless you. Good luck to the rest of you truckers out there trying to come up.

[@jonathancompton7]

I'm starting my own trucking company soon and this helped a lot explaining the factoring companies.

[@GrammarIM]

Thank you! And I used to think the brokers were just holding the money back, but I learned that's not the case. It also takes the broker 30 days plus to even get the money from the shipper. That's important to know I think.

[@amanchato1991]

Good info. I know most people like RTS unfortunately i didnt have a good experince. Now I do most of my services with ROADEX cuz theyre a 1 stop shop.

[@tesolforlife5826]

U must be a teacher by profession. This explanation was simple ans straightforward. Can you do a video on loadboards/dispatchers/brokers? I am so thrilled to have found your channel!!

[@JustAGrl007]

Thank you for this video! I've been researching trucking and kept hearing about ppl offering factoring but nobody ever explained what it was. This video broke it down in laymens terms for somebody not working in the industry.

[@trinettaseabrook7]

You have been such a blessing to me. Thank you for all the helpful insight into the trucking business. Please continue to be a light for all. God Bless You.

[@erjohnjohn]

😇🙏🏿

[@brandirobinson3276]

I love how you broke this down. Understood

[@jordanmeija7384]

Thank you brother, God Bless You

[@cloud-dz1ko]

i love the way how he explains

[@dtg0342]

Great information extremely informative and straight to the point

[@sunrey1938]

Thanks for answering this question.

[@infamousghoststories]

Now exactly what paperwork are we giving to the factoring company?

[@bryandent3717]

David, I absolutely LOVE your videos! I never heard of a factoring company. Great info! Thanks

[@Mbstocks2020]

What an awesome explanation

[@joywilliams1065]

I invoice myself and do quickpay cause of a bad experience with RTS .. why do u suggest factoring plus it's adding a middle man

[@babies909]

How exactly do you do that? A lot of people say factoring is a must

[@3zadam]

good video thanks. I work for a retail co. some of our suppliers use factors for us to pay them. from my point of view its frustrating since I have the factor and the supplier both contacting me for payments. but I like the idea of it.

[@mrockefeller10mr]

Very well explained. Thank you Sir.

[@meazagezahegn9375]

Thanks for The information

[@fritzdeacon6032]

Hey guys how do you fill out the schedules BOLs to get pay from the factoring company

[@Hardworkbusiness]

What a good factoring company

[@yingmin100]

Is you told shipper you want to use factory company? And they will take %

[@CrimsonA1]

Your explanation was well-done. Pure and simple!

[@rouddproduction5019]

I go with RTS because of you man. I have so many factoring company call me, by watching your videos.you the only dude I trust in KZbin man. I did my company bass on all your videos.Thank you so much brother preciate it.

[@TruckingFromScratch]

Glad to help

[@pasofino9583]

How RTS working out for you?

[@BrowsingBrenda]

Hi. I really appreciate your teaching mechanisms. You seem to be very detailed oriented. It is hard to locate coherent and cohesive material pertaining to the subject matter on KZbin. Would you please create a video that shows the step by step process of sending BOLs through the factoring process? I like your whiteboard tool. It shows you are professional. Could you explain or teach the factoring process by using a flowchart or even using a computer screen tablet example? This would be great 👍!! Again, thanks for all your tutorials.

[@10RAS]

So do I send the bol and rate confirmation to the factoring company? Thank you in advance

[@Airbulletify]

Widestream Capital only charges 3% no extra fees

[@marcusthomas69]

Good looking out

[@priyavenkateshan7379]

Thank you, it was very useful

[@jefferyrice6823]

Great information. Thanks for making this video

[@kingsleysarfo.]

So when receiving from factoring the standard is 24 to 48 hours what is the longest it should take ?

[@Missbayka]

So what happens if a broker is bogus and doesn’t pay their invoice? I’m sure the factoring company takes care of it but what if?

[@nathanielwilliams2272]

If Im not using factoring when I start, which invoicing service can I possibly use?

[@TruckingFromScratch]

Just use a template send the invoices yourself

[@nathanielwilliams2272]

Just got my authority David!!!

[@adamcoffman9160]

I know with full authority, there is also the paperwork part of it, like IFTA stickers and a whole bunch of other stuff a mega company normally takes care of for you... so are there factoring companies that does that as well?

[@Alfa-bq5zs]

Can you please tell me, We completed the load for $2000. However it turned out that this company "Clutch Transportation Services" is not approved by Apex. 6 days passed since we delivered their load but, they still didn't pay our money. Pls advice and help me 🙏🙏. Is this company reliable company and will it pay our money?

[@mister101ish]

Thank you sir, great information!!

[@Tiffany.B.]

Hi, I've just started a bookkeeping business in which I specialize in owner operator industry. Invoicing is something I want to offer, but I'm not sure how to prepare the books for it. Can you do a tutorial on invoice factoring in QBO?

[@koolbeanzist]

When you factor , where do you get your 1099s from?

[@chocolatebutterfly9295]

Thank you so much for this short and very informative video. So does the factoring company take their fee that you, the dispatcher owe them from the Broker’s payout as well?

[@kandykane841]

Do you still have to send the broker an invoice if you decide to go with factoring instead?

[@2fash721]

Thanks for the info. Could you please address quick pay vs factoring

[@TruckingFromScratch]

Will do

[@TruckingFromScratch]

kzbin.info/www/bejne/gWq4gX2Ap8SosLM

[@2fash721]

@@TruckingFromScratch Thanks David

[@avo3284]

So factoring is better than quick pay because, 1. With quick pay your rate remains the same regardless of your fleet size but with factoring your rate decreases as your fleet expands. 2. Quick pay has a wire transfer which takes 48 hours but with Factoring you can get same day funding through a direct ACH deposit Hope this helps :)

[@terrellp22]

I'm going to be new soon, operating under my own authority, should I hire a dispatcher or go it alone & just use freight factoring?

[@vincevincent5195]

Hey Dave. I embedded your video on my FAQ page about factoring. Is this ok?

[@TruckingFromScratch]

No problem. Thanks for asking.

[@Kylo407]

Can we use More than 1 Factoring company? Example: If Im with FCS and wanna factor a load on the DAT board thru Triumph is that allowed?

[@deepcheema4417]

David the vedio is very informative Can u tell us What will happen after The factoring company send me the money in 24-48 hrs But after 30-90 days somewhat the broker closed the company or deny to pay them Or broker run away What will happen ..?

[@PMHNP]

How do I record in quickbooks if The factoring company does not take a reserve fee and they only take the commission fee

[@yotiep.1072]

Thanks man for the info

[@geraldgoldsmith8757]

Who is a good company for dispatch

[@RC-Heli835]

Thanks for sharing! I am in need of a factoring company to get our road tractor pay returned faster. Do you have to sign a contract with RTS?

[@SahilSharma-xj7ie]

Hey, are you still looking for factoring service?

[@RC-Heli835]

@@SahilSharma-xj7ie No sir! We are using bobtail right now.

[@boltscity]

I've looked at a few factoring contracts and they seemed to be very complex. It seems like they want complete management of your company and financed. Any recommendation about their contract?

[@ronjordan2831]

Good information. Thanks for sharing.

[@edwardochoa-zy7pc]

So do factoring companies provide fuel cards if so is it a good price an price

[@thechi7882]

What was the name of factory company you used

[@charitymcgowen9108]

Do you create your own invoices or do you use an invoice service?

[@erjohnjohn]

What is a Tracking Hold mean - $100.00

[@dogoargentino7834]

Very well explained. I personally like Widestream Capital they take a low flat % and don’t keep any of my money in reserve I get paid the same day with no gimmicks.

[@nandostransport7958]

Thank you

[@Cyletab]

But this example is incomplete right? Cause the broker takes money off the top of the $1000 so your actual amount isn't that to start with. Right? I thought that's what you said in another video.

[@TruckingFromScratch]

Good question & recall. When the load is placed on the load board, the broker has already worked in his/her profit. Let’s say the broker negotiates a load with a shipper for $1,000...The broker will post the load on the carrier load boards for $700. Make sense?

[@chrishopkins8214]

So would you say roughly it’s pretty easy to make $1000-$1400 per day in trucking

[@r1trini]

which trucking company software do you recommend for starting out.

[@TruckingFromScratch]

I use an excel spreadsheet, but my clients like truckingoffice.com

[@360moto3]

What if you book your own Loads?

[@curtislimuel9963]

Rts is good? What about the contract ?

[@griffinemerson8475]

A 3% fee for convenience of not waiting 30 days is a 36% APY return for the factoring company a 5% fee is 60% APY they really serve us truckers well. If you have a real deadbeat shipper that you have already taken other actions against then by all means hire the factoring company to deal with them otherwise AVOID!

[@dispatchergags1476]

Do you, as a dispatcher, choos which factoring company you will use or company owner choose it?

[@xx_rayo_07_xx34]

Great info!

[@franchiseplaya75]

I will be starting my independent dispatching soon. I’m confused as to who needs or gets the factoring company. The carrier or the dispatcher?

[@TruckingFromScratch]

Carrier

[@franchiseplaya75]

@@TruckingFromScratch ok. Thanks for responding

[@christianbrown6469]

Great video!!

[@Johnnyondaspot-t5x]

Great info

[@Astaffordjr]

Does this apply for dispatchers as well?

[@andretucker9712]

What happened if I have a factoring company but don’t use them?

[@P.singh19]

Does factoring companies deal with lumper fees and getting detention from brokers ?

[@surname037]

can you have more than 1 factoring company at the same time?

[@kamrontemurov840]

Thanks man

[@yvescompas6169]

I am thinking about going into trucking! Can you make a video on how you got into it and how you got your CDL and different ways to get it? Thanks!

[@g8gxpboi]

Yves Compas theres a few ways to go about it. For me there was a local university offering the full setup, learning permit, learning to drive and testing out. There’s that way. There’s also driving for a company that will sponsor the process.

[@biggernigga1]

Great information

[@damondb3003]

Thank you 😊

[@charlescespedes3510]

Awesome stuff man but one thing I misunderstood. So when you get your BOL. Do you have to send it to the broker or do you just send it to the factoring company only and they deal with the broker?

[@AnthonySmith-im5wm]

U send your BOL to the factoring company.

[@moneycolor1286]

Can you recommend factoring company? I live in New Jersey. Thank you

[@TruckingFromScratch]

Check the link in my description for RTS

[@juicebby5.315]

Great video

[@timjoyce9380]

But if Rts does not get paid RTS come back on you and want their money back. Recoarse versus non-recourse

[@jamel136]

There is really no companies out there that has a true recoarse program, thay all have stiulations

[@orlandoduran7740]

do you also have to send the paperwork to the broker even if you use a factoring company

[@jamel136]

No you send it to the factoring company and they send the paperwork and invoice to the broker.

[@Winterstick549]

That $1000 can grow over 3% in the stock market in less that 60 days. Love Microsoft, AAPL, EW, MCD, SAFE, TER, ADBE, FICO, CTAS, PG, etc.

[@Winterstick549]

@Stinkyfinger That's fine, but even better to just put it into Apple, Microsoft and Tesla. Maybe split it. Half into these three, the other have into an Sp500 index fund such as VOO. Compare over the past 7 years.

[@Winterstick549]

@Stinkyfinger I bought into TSLA around $500 a few several months ago. I know it's speculation, but they just keep on developing and developing. The world is going electric wheather anybody likes it or not. Right now I'm in on AAPL MSFT DocuSign The Trade Desk Tesla And my specs are Moderna and LPCN Lipocine. FDA will either approve, or disapprove their Low T capsule. My Vegas is betting on BioPharma stocks. I used to see Tesla like that, but the Tez train just keeps rolling along.

[@Winterstick549]

@Stinkyfinger Can you put a trailing stop on your stocks? I use TDAMERITRADE

[@Winterstick549]

@Stinkyfinger I highly, highly recommend it.

[@DavidGarcia-fp5hg]

Thank you god bless !

[@davidmcnealofficial]

How much is the deposit for insurance when you get your truck

[@TruckingFromScratch]

kzbin.info/www/bejne/qHLVZHRmZZuSnZY

[@alexnjsikoko]

now its clear

[@amrithehar6797]

Good content.

[@93kf]

could i operate under your company as a startup independent operator?

[@sdkins7994]

Great video, 👍

[@garygerard4290]

thank you 'thumbs up

[@ciaragay2257]

Hello, I am looking to get in the dispatching industry and was wondering do you recommend signing up with a factoring company before you start looking for carriers and booking loads or is this something you do as you are booking the load.

[@TruckingFromScratch]

Factoring is something that a carrier sets up for his/her company. Dispatchers don't enter carriers into factoring agreements.

[@supremetrucking7395]

Thank you 🙏🏽

[@Nick-zj8mp]

Does r.t.s. take 3 percent or where you just explaining how factoring works

[@TruckingFromScratch]

RTS charges 3%. Typical factoring fees are 2-5%

[@naizgiyemane8861]

@@TruckingFromScratch is it a concidence that your a agent for rts? Or you randomly decided to pick a factoring company for the video? Hmmmmm

[@michaelnru]

Good information! How can I get in contact with you?

[@EveryBitOfBree]

What if the broker never pays

[@EASTCAMDENRD]

But using a factoring company requires a contract to be signed and to my understanding you have to buy your way out of this contract agreement in order to lease on with another company? Great video by the way as always Dave. I really appreciate your content and I have literally built my own trucking company watching your videos

[@avo3284]

Not necessarily I work for a factoring company called Bobtail and we offer factoring without a long term agreement

[@cwest7333]

Looking for a good factoring company currently. Any suggestions?

[@TruckingFromScratch]

Check out the link in my videos’ descriptions. I have a list of my recommended resources there.

[@jamel136]

RTS will lock you into a 1 yr contract you will come out better using quick pay which 90 percent of the brokers offer and you won't be locked into a contract.

[@alexfont27]

Thanks Bro.🇨🇺👍🤝