JD Factors?

lowmiler88

lowmiler88

Site Supporter
30
I'm with loaders although we are a carrier any freight we broker we do pay in 30 days and yes we will quick pay for 5%, we are not a bank or a CH so we figure that 5% is a lot less than a factoring company. We also try and have everything emailed to us the faster the better. I am now arm twisting the accountantss to get into electronic payments and eliminate cheques and mailing altogether but accountants sure like their paper. As far as new customers they have a choice EDI or email invoices to them, we will actually turn down customers that insist on mailing "originals" which we have never mail an original ever (photocopies only) so the only reason for it is to stall and take longer to pay. Once that delivery is made it is our money and we want it as soon as possible so we are very cautious about the stall tactics.
Remember any company that is paying in reasonable terms and then goes to 60+ days RUN AWAY they are having major financial problems.
 
Freight Broker

Freight Broker

Well-Known Member
30
I pay my bills promptly, check in the mail within 24 hours of invoice receipt, no exceptions. However I purposely don't do quickpay as it crimps my own cash flow, and 5% isn't enough (in my opinion) to justify the service.
 
K

KeyFactor

Active Member
10
lowmiler88 said:
I'm with loaders although we are a carrier any freight we broker we do pay in 30 days and yes we will quick pay for 5%, we are not a bank or a CH so we figure that 5% is a lot less than a factoring company. We also try and have everything emailed to us the faster the better. I am now arm twisting the accountantss to get into electronic payments and eliminate cheques and mailing altogether but accountants sure like their paper. As far as new customers they have a choice EDI or email invoices to them, we will actually turn down customers that insist on mailing "originals" which we have never mail an original ever (photocopies only) so the only reason for it is to stall and take longer to pay. Once that delivery is made it is our money and we want it as soon as possible so we are very cautious about the stall tactics.
Remember any company that is paying in reasonable terms and then goes to 60+ days RUN AWAY they are having major financial problems.
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In fact, most factoring companies will charge much less than 5%, if we're talking about 30 days between accelerated and "normal" payment. For carriers out there paying that rate for 30 days, do some research and get referrals to a good factor, especially if brokers don't even want to offer quick pay. For brokers that are acting as factors and don't wish to be factoring companies, the same advice holds.
 
loaders

loaders

Site Supporter
30
It seems that the good factors are quite proficient at adapting their services to fit their customer’s needs, as any supplier worth his salt should. While they all offer the same basic service, you would be best served to interview a few different factors to see who aligns most closely with your specific needs.
 
H

Henry

Active Member
10
Always have an attorney review the standard contract with a factoring company, before signing. You might be shocked.
 
K

KeyFactor

Active Member
10
Henry said:
Always have an attorney review the standard contract with a factoring company, before signing. You might be shocked.
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Henry, your advice is good, but you should be aware that attorneys, especially those unfamiliar with factoring, can interpret agreements in unintended ways that don't reflect how the agreement will be implemented. It's not really their fault - I would even say that our own agreements paint a picture that is different from reality. I think your best bet is to ask around and get referrals.
 
loaders

loaders

Site Supporter
30
I think Keyfactor, and most others on this site who work for factoring companies will agree, that many of their potential new customers main concerns are; "how fast will I get my money and how much is it going to cost me"? Obviously the decision to partner with a factoring company is much more involved than that and should include, at some point, a discussion with your attorney. Having your company enter into a contract with anyone is not to be taken lightly and a few dollars spent obtaining a legal opinion is money well spent in my opinion. How the day to day procedures work will probably be learned from referrals and discussions with other users of the service.
 
F

Fattyfirst

New Member
1
trucker8 said:
I am new to the forum and the trucking business. Can you reccommend a good factoring company? What is your experience with JD Factors?
Thanks
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Try Grand Financial 905-738-6661 ex 344. Very easy to work with and you won't get bogged down in a terrible contract.
 
H

Henry

Active Member
10
I am seeing more and more of Revolution Capital. I think they bought a few of the other factoring companies.
 
W

WOODY

Member
10
I'm siding with Jonny and lowmiler, in regards to paying carriers direct. We stopped paying to factoring companies a few years ago, for various reasons, one of which is that it is far more admin work than most people realise. However, having said that, if someone has to go the factoring route I would recommend JD Factors, they were always very above board and profession.
 
L

LoadGirl

Member
10
WOODY said:
I'm siding with Jonny and lowmiler, in regards to paying carriers direct. We stopped paying to factoring companies a few years ago, for various reasons, one of which is that it is far more admin work than most people realise. However, having said that, if someone has to go the factoring route I would recommend JD Factors, they were always very above board and profession.
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I disagree with this. We've dealt with JD factors as they were the factoring company for a carrier we used a few times and they misplaced needed paperwork on a couple occasions. The carrier no longer deals with them either since this. Could just be this instance but I rarely deal with a carrier who uses them, generally deal with grand, and rev/baron.
 
H

Henry

Active Member
10
How to you vet the carriers? If they have assigned an invoice, you must legally pay the assignee, from my understanding. I usually hear about a factoring company being involved a few days after the shipment drop.
 
K

KeyFactor

Active Member
10
I don't understand why a carrier would not disclose their factoring relationship with shipper/broker when negotiating the load. Makes no sense to spring it on someone at the last minute when they may have had a bad experience in the past. Even if you don't think that experience is likely to recur with you and your factor, it's the customer's right to choose with whom they do business and the existence of a factor may be material to that choice. I certainly don't like ramming stuff down the throat of my customers.
 
H

Henry

Active Member
10
It is my understanding that you legally must pay the factoring company if the invoice was assigned. The only way out is if your contract with the carrier has a clause indicating the invoice can not be assigned.
 
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