Category: Benjamin Bellville

Things Freight Factoring Companies Won’t Tell You

Posted on December 16, 2010 by - Benjamin Bellville, express 2290, freight factoring companies, freight factoring company, non recourse factoring, quick pay freight brokers, recourse factoring, Tax 2290

Featured Blogger
Benjamin Bellville

Freight factoring companies are sometimes a necessary evil if you own a small trucking company. If you are running an operation that needs to have the cash rolling in on a more regular basis than the industry average days to pay of 30-45 days then at some point you will do business with freight factoring companies. Before you get too tied up with one though you need to have a good understanding of some things they will never be upfront and voluntarily tell you and also know that they for the most part do not care about your success.

For any small trucking company I highly recommend hauling freight for a quality quick pay freight broker whenever possible if you are in need of constant quick money flow, but there will be times when a quality quick pay freight broker does not have freight available where your truck is, this is when you will need to do business with freight factoring companies. On average for a small trucking company business they are going to charge you 4-5% of the total invoice for pay on the same day that they receive the originals.

There are two types of factoring, recourse and non-recourse. To qualify for a recourse deal you will have to have stellar credit and/or do millions in sales as this means that if a customer fails to pay that you will owe any money previously paid out to you on that load back to the factoring company. It does not matter why the customer did not pay just know that the factoring company will take their money back in full immediately.

For non-recourse freight factoring you need to understand that each load does not stand alone as a separate business deal like it legally should in my opinion. Whenever you get paid for loads you have factored if at any time the customer on the load refuses payment on that load to the factoring company they will withhold money from completely different customers to cover those lost funds. In my experience of dealing with 3 different freight factoring companies they also will not have the class to call you and alert you to the situation.

Instead you are expecting much needed money and it simply never shows up. They also will not work with you to ensure you have funds available to operate. They take all funds that they claim you owe them as soon as it’s available. It’s all just a fancy advertising scheme to draw you into their web of lies and deceit. So tread carefully when dealing with them and have the understanding that they are out for themselves and not you, use them sparingly and protect yourself by having legal representation on retainer.

Do you know who does care about your businesses well being and success? That’s right Express2290. Be sure to visit them and see how they can make your life easier by handling all of your 2290 needs.

Getting Familiar With The Setup Process With Freight Brokers

Posted on December 13, 2010 by - Benjamin Bellville, broker setup packet, express 2290, freight brokers, irs 2290, setup process with freight brokers

Featured Blogger
Benjamin Bellville

Today I would like to point out some key things to look for in the setup process with freight brokers. This of course being when you will have to fill out an information packet and fax it back to a broker before they will allow you to haul their freight. I’m going to talk about the type of information you will receive from them and it’s relevance, the information and forms you will need to send back to them and the little things you should look for in the packet that if not followed correctly may cost you a bundle.

What type of info will a freight broker include about themselves?

With every freight broker setup packet you will receive many pages of information about that broker. These are not pages that you need to send back, but they are pages that you should save and staple together with the finished packet after you have faxed back what was required. This information at a minimum will include the following:

   1. All of the freight brokers contact information.
   2. Their freight brokers authority page (MC#)
   3. Their Insurance carrier information.
   4. The brokers surety bond.
   5. A reference page. (showing companies they have brokered freight to)

This is all information that you could find out just by knowing their MC#, but it’s just easier to have it on hand should they decide to stiff you on a payment and you need to make a claim against them.

What type of info will they require from me?

This is going to depend on the freight broker you are dealing with,some have very short packets (you will be thankful when you get that lucky!) and some will expect you to fill out an encyclopedia worth of what is sometimes pointless it would seem. following are the main things you will be asked to return every time guaranteed.

   1. A copy of your authority (MC#)
   2. Copy of your insurance.
   3. A current W-9.
   4. A carrier profile page.
   5. The contract with each page initialed and dated as well as properly signed.

For this reason it would be a great idea to have copies of the first 3 on your computer easily accessible if you are using an email fax server. After you have seen a few carrier profile pages it would also be a good idea to make one of your own as every now and then you will come across a broker who wants one, but fails to send you a form.

Things to look for in the setup process with freight brokers!

Some of this information will also be included in fine print on the load rate confirmation, which is the actual contract that a freight broker and trucking company enter into on a load by load basis. What you want to watch for is their policies that need to be followed that in many cases if not followed will garner a fine for your company. These may include the following stipulations:

   1. Fines for not being on time to a pickup or delivery.
   2. Fines for being reported as being uncooperative with their customers.
   3. Fines for damaged freight.
   4. Fines for not contacting them with load movement updates on their schedule.
   5. Payment information pertaining to what they will or won’t cover for things such as tolls, lumper fees,detention and layover.

Once you get the hang of the things to look for it’s best to just ask the broker any questions you may have about these things before you have them fax you a setup pack. Their will be some brokers who are too demanding and who are sticklers for all fines they say may be levied against you regardless of the circumstances. It’s a learning process every time you do business with a new broker, but if you pay attention to details you should have no problem at all.

Now that you’ve learned all about the setup process with freight brokers go on over and check out how easy the folks here at Express 2290 can make filing for your Heavy Vehicle Use Taxes which are required to be paid and proof shown before you can get your I.R.P.

Introducing Featured Blogger: Benjamin Bellville

Posted on November 17, 2010 by - Benjamin Bellville, blog, logistics, start a truck, Truck Tax, trucking

It is our distinct pleasure to introduce our new featured blogger – Benjamin Bellville.

With more than a million miles under his tires and 11 years of experience as a company driver, owner operator, and fleet owner, Benjamin writes with a wealth of experience.

Over the last year, Benjamin has quickly gained recognition as a prominent blogger in the transportation industry, sharing his tips, tricks, and information with the millions of drivers already on the road – and those still dreaming of their first set of keys.

Stop by often to read Benjamin’s blogs on topics affecting the world of transportation and the industry today. From compliance and regulations to the vital basics of trucking operations, Benjamin will keep you informed and on the road.

For more information about Benjamin and his other work, check out his articles on HubPages, BlogSpot, his new personal site StartATruckingCompanyBusiness.com, and as always, right here on our ExpressExcise Blog. You can also follow Benjamin on Twitter at BenjaminB35.

Thank you for stopping by and let’s keep it safe!