Update: This interview was recorded back in November, 2016. At the time, we had no financial relationship with Triumph Business Capital. Today, Don and I are proud to have a business affiliation with them. This means The Trucking Podcast receives a small commission from your referral. I’ve left the rest of this post episode as written.
Back To The Post
What is Factoring? We will dig into it in this episode. In trucking it’s commonly called freight factoring, invoice factoring or accounts receivable factoring. The correct definition would have to be invoice or accounts receivable factoring.
Why Does Buck Care About Factoring?
For starters, Don and I have no financial interest in this topic. It’s a subject I already know more than most about, and I don’t think it gets fair coverage. It seems it’s either referred to as the greatest thing since air brakes, or it’s worse than selling a kidney. Both are false. It’s a business tool, and it may have a prominent place in your trucking business.
Shark Tank And Other Ways Of Raising Capital
I love watching the TV show Shark Tank. People pitch their business ideas in an attempt to draw one of the millionaire entrepreneurs to help fund their companies. Great entertainment and a great chance to learn what a partner with deep pockets will cost you. One thing you always hear is it takes at least 10% to get a shark interested.
It may be worth giving up equity in your company to have one of these “sharks” as your business partner, but there’s a better way. As an independent owner operator, you can buy the expertise and create the cash flow without giving up ownership.
Why Triumph Business Capital?
One word, DAT! I have no relationship with any invoice factoring business, but I do have an affiliate relationship with DAT. If you don’t know who they are, you must be hiding under a rock. I reached out to my contacts at DAT to put this show together and they sent me to Triumph Business Capital, and Jason Mullican. Jason was kind enough to come on the show and give us an objective overview of invoice factoring.
You can reach Jason and the team at Triumph by calling 866-368-2482. You can also follow the link to their website, Invoicefactoring.com.
The Way I See It
You need to find good customers and good loads. You need loads that pay well, and pay in a timely manner. You need to start making contacts to get your own freight. But it all starts with who you know and cash flow.
Rather than sell a portion of your business for contacts and working capital, you can partner with a killer load board like Trucker’s Edge. BAM! More loads, broker credit scores, days to pay, average rates for the lanes, everything you need. Now you’re making money.
Your second partner, Triumph Business Capital keeps your cash flow looking good. Make that delivery, get paid, lather, rinse and repeat.
Now you’ve got the deep pockets and the contacts of a Shark Tank investor, but you don’t have a partner that owns any portion of your business. It’s yours. You retain total control.