Description: The article is about capital one power card. The author is going to talk about invoice factoring and why we need to pay a reserve at a factoring company, the content will mainly focus on the topic of the reserves and show us something that needs to be paid attention to when we use the card.
This is Jason poke, the trucker’s coach on a cold day here in Western Kentucky, we got down and got frost last night, life goes on, today we’re going to talk about invoice factoring and why you are paying a reserve, why you are paying a reserve at a factoring company.
If you’re one two three trucks maybe even up to five trucks, why are you doing recourse factoring? If it is anything else, why are you paying a reserve? I’m going to do a record, a video letter today and we’re going to talk about reserves.
But basically what a reserve is it? It is a portion of the money that the factoring company retains for security for you in case your broker doesn’t pay, so how are you Timothy? If your broker or your factoring company, you’ve got a 4% rate, a lot of factoring companies are throwing out these 4% rates and four and a quarter percent rates, some people are promoting these companies.
But you’re going to look at a four to 4% rate, you’re also looking at about a 90 percent of mass rate at most places, a 90 percent advance rate, so if we go off of 4%, if we go off, 4% is your factoring rate which we will get you way better than 4%, you’re looking at that company holding six percent of your revenue, that’s a reserve, so what that means is that they’re going to give you 90 percent of your upfront.
They’re going to hold ten, then whenever that ten comes out, they’re going to keep four for your factoring and you’re going to get the other six, so it’s a six technically, they’re holding six percent, but you’re not going to get the remainder of that six percent until that broker pays your factoring company.
My factoring company doesn’t do that to you, so these folks that are selling these factoring companies with these ninety percent advance rates or 92 percent advance rates or whatever, they are at the end of the day, if they’re holding your money, so why would you want to get a non-reserved factoring and even a lower rate than these people were a lot of these companies are putting out four and a quarter rates four percent rates.
You’re doing well, if you can get 3.75 to three and a half and they’re holding six to seven percent of your money, why would you want to do that? Because cash is king in this business and when cash is king in this business, you have to cash flow it, you cannot wait, if you are paying drivers, it is hard for you to wait.
Sometimes 30 45 60 days for an invoice to clear to get the remainder of your money, so why would you do that? That is a reserve, a reserve is for larger carriers, larger carriers that do non-recourse funding on an average, that’s because they are non Rico or they are recourse funding where they can take a lot of risk, so they’ve got a lower rate a lot of times.
Those rates are two two and a half percent, some carriers one and a half one point three quarters depending on the volume and that depends on the factoring company as well,but for instance, you know that they got a two percent rate as a huge carrier, got 30 trucks, 40 trucks, something like that.
I get on 2% rate, if they’ve got 10%, that means that the factoring company is holding 8% of their money, but these people are flowing in all kinds of loads, they’ve got 40 50 trucks, something like that, so they’ve always got generated cash flow you as one truck owner operator, a two truck owner operator, a three truck owner operator can’t afford to let six to seven percent of your money set by the wayside.
Why are you doing that? That is my question, why are you doing that? Why haven’t you called my factoring company at trying business capital? They are bank now most factoring companies have to go and borrow their money at a higher rate of return to give to lend you the money, that’s why you see those four and a half.
I’ve seen people as much as 5% on factoring, there are other things that they don’t tell you about and those other things are like they have absorbing an ACH fees of $10 to ACH, this is true, $10 to ACH, a lot of them have fuel cards and things like that and triumph is no different, we have a fuel cart over there, that’s a nine percent off or nine cents off of luvs ten cents off a pile and Flying J.
It is an EFS card and your money can be loaded to your cart or directly to your bank account, they have an app, it’s called the cash for truckers app, we will do a tutorial on that here before too long as well on a recorded video.
But all you do is that you can upload everything from the app, you can watch your funding, aren’t there on the atom? You watch it and you can watch when your money’s been funded, you can watch where your money goes, if you have drivers, once it’s on that ef-s cart or whatnot or you put it to your bank account to pay your drivers, you can watch that money, you can ACH it to your drivers, it is the most simple system, you’ve ever seen in your life, but that’s not what I’m trying to tell you about today.
I’m trying to tell you about why you would be a 1 2 3 truck carrier and and why you would be a 1 2 3 truck carrier and have a reserve folks, this doesn’t make good business sense and people were on YouTube selling this every day and people were sucking it up.
I have no idea why it doesn’t make business sense, why it doesn’t have a reserve, I mean if you have one two three trucks, if you call my person Matt green at trying business capital, I’m going to give you his number and it’s also going to be in the description.
You got two numbers for Mack, one is his cell phone, two one four two two six nine two seven three and then his business line four six nine three one two seven one eight eight just tell him to coach, since you will get a special rate guaranteed, it’s not going to be anything like I mentioned here.
You’re not going to end up with these reserves and all this other crap and GB jabbing 4,000 other dating fees that they don’t tell you about all those things, you’ll be factoring with a bank, I’m not selling you something that I don’t use, I’m not selling you something that I don’t believe in, I’m not selling you something that I’m going to leave next week, I’m not selling you something with a reserve in most cases depending on the size of your fleet.
If you get into the lower factoring and you get into recourse and things like that, obviously, you’re going to have reserves, but for Rick, for a small 1 to 3 truck carrier, why are you paying a reserve? It makes no sense to pay a reserve, no one can tell me why it makes business sense for you as an owner-operator to pay reserve, nobody can tell me that, because it doesn’t make good business sense, so we’re going to do a recorded video about reserves and why you shouldn’t have them and explain reserve funding.
We’re going to go into a record, a video and help you out a whole lot about that I want to do this, live feed to let you go to trying business capital, call my friend Matt green at two one four two two six nine two seven three or four six nine three one two seven one eight eight tell them that the coach sent you and get your special rate and get your non reserve funding.
If you got one two three trucks call them off get your special rate, you can say Jason poke you can say the truckers coach, you can say the coach sent me they know who I am and all you have to do is do that, you can ask people that are here on YouTube, we say we’re going to do.
You’re going to get in most cases everybody gets it, this isn’t Jason, trying to up the ante anything like that one, I’ve bottom it out, you’re going to get a great rate, you’re going to get in most cases depending on the size of your fleet, why do you think about your money? Think about your business, think about your cash flow, think about staying in business and think about the things that you could do with that cash flow.
If it’s coming in 24 hours and that’s what you’re going to get, try it business capital and you’re not going to have that reserve to worry about neither, so if you’ve got a 3% factoring fee, you’re getting 97% now, not 97% later, you get a nice some percent, that is worth its weight in gold rather than getting 90% now instead of percent later in 30 45 days.
Why are you waiting? What are you thinking about? If you are under a contract right now, call my friend Matt green also two one four two two six nine two seven three four six nine three one two seven one eight eight they can do buyouts.
If you’re in a position to be balled out, if you’re not under a contract or you’re at the end of your 90 day, call Mack, he can help you you think about what I told you, why are you factoring with a reserve? Why are you doing that? You don’t make good businesses, this is Jason poke, the truckers coach telling you liked our video, share them all over the place, join the Facebook group at D truckers coach on Facebook groups.
We have more knowledge there than I will ever know about the trucking industry, there are a lot of people and I forgot more about trucking industry than I will ever know, so keep that in mind, think about what I told you, think about why you are factoring with a reserve, when you don’t have to join triumph business capital called Matt green to one four two two six nine two seven three four six nine three one two seven one eight eight even.
If you are with a current factoring company or if you have a quote from another factoring company, send it over, he’ll take a look at it, mention the coach and get yourself a special rate and why you are doing reserves, we’ll see you next time.