Previously in this series: Quicker pay, lower fees trending for factoring, other fast cash
At D&S Factors, long associated with Truckstop.com and its family of companies, keeping it simple has been the watchword for its factoring arrangements with independent owner-operators and small fleets, says Thayne Boren, vice president of sales. The company uses a brief agreement at startup and a rate structure that supports the company’s goal to be “transparent with our fees,” unlike some other factors, he says. There’s a “very low” client turnover rate. The application process has a 24- to 48-hour turnaround, sometimes less.
“As long as you don’t have financial fraud in your background and you have authority, it’s really pretty simple,” Boren says.
For a one-truck independent, a factoring arrangement shouldn’t take much time to set up, whether it’s “a guy with one invoice” or someone looking for a long-term relationship, says Blaine Waugh, senior vice president of sales for Triumph Business Capital. The company’s longest contract, about 30 pages, typically covers recourse arrangements for small fleets with particular custom needs.
The proliferation of smartphones has played a big role in the growth of factoring and newer versions of quick pay services. Phones and tablets serve as customer portals for access to invoice creation/scanning and transmission, broker credit checks or credit lines. Mobile-based services have reduced the hassles associated with mailing paperwork, greatly speeding up the process.
Nonrecourse arrangements most often require a credit OK from the factoring company to factor one of a carrier’s invoices. Most companies give a yes or no to any individual broker, though the Apex Capital company runs a variation on that by specifying credit maximum amounts for each broker. In the past, a trucker might need to call in to the factor for the credit check, but most today offer self-serve portals online.
Owner-operator Hayden Eady describes the Trucking Partners portal as a basic website accessible from anywhere on any device. “If you don’t find the broker on their website, you shoot them an e-mail,” he says. “Within 30 seconds, they usually tell you yes or no” on whether the load will be factorable or not. “If they tell you no, and you haul it, you’re responsible for collecting that money. The approved list of brokers grows from day to day — you might check on one today that’s not approved, and it’s there tomorrow.”
