I don't need a Freight Factor. I have plenty of Cash...

I help a lot of new Carriers and Brokers with Freight Factoring who are brand new to the freight game and getting into the business and every now and again I get a person on the phone who would say to me, "I don't need a Freight Factor. I have plenty of Cash." I would tell them time and time again, "That's great, but why are you going to risk using your cash when you can risk using someone else's?" 

There are some Carriers out there that have plenty of money and don't want to use Freight Factoring and I get it. They feel like they're throwing money away, but it really comes down to two things that are super important when it comes to running your Trucking Business. A.) Diversifying risk and B.) paying a company to be your administrative assistant. The Freight Factor isn't just going to protect your money, they're also going to do your billing, invoicing, collections, and credit checks on Brokers. But hey, if you want extra things on your to-do list that you can 100% delegate to someone else for the sake of not paying a Freight Factor around $1 a day... I'm not going to stop you from doing whatever you want to do. But what hangs me up is a Carrier risking their own money. "Ok cool ABC Trucking you have plenty of cash in the bank and you can wait 30/60/90 days for a Broker to pay you. But imagine what you could do if you had instant cash flow and could use that capital now and not have to wait to get it in your bank account?"

Whether you're starting a Trucking Company and investing in Box Trucks or Eighteen-Wheelers, or maybe you're investing in Rental Properties, using someone else's money and not your own is always a smart idea. So, leveraging someone else's cash (the Bank, A.K.A. the Factor) and reducing your exposure and risk of potentially not getting your money back is a no-brainer. So, why not? Even for the sake of contingencies and planning for the unseen future if things did go south and problems started to arise, I’d rather lose someone else's money than my own.