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hustle fam hustle fam welcome welcome come one come all happy truckin hustle Tuesday and we are back beautiful day beautiful day listen yeah as you can see we have been upgrading the truck and hustle experience we moved into some visuals as promised a lot more to come first thing I need you out to do everybody listening is please go right now and subscribe to our YouTube channel truck and hustle TV I promise you I'm working on so much content it's gonna be crazy I need you I to go subscribe right now run those numbers up we just dropped the pot room entry for Alex good energy that's fire go check that out we're gonna be doing more pot room entries pod zoom entries like that's me that's all me anybody who does upon zoom entry they they got it from your boy and it's cool I ain't even mad at that you know make it happen let's get it what else what else what else also website we are still working out a few little things on a website soon to launch look for that coming coming really soon but for now go to Chuck Chuck in hustle calm t ru ck n hu stle dot-com leave your name and your email so we can send out send you out the newsletter with more updates what else make sure you following all of our socials of course Instagram I just talked about the YouTube Twitter Facebook we're gonna be bringing more updates today we just trying to upgrade as we go along you know I mean I'm learning I'm new to a lot of this stuff so you know everything isn't exactly where I want it to be but we're gonna get there we're gonna keep on building we gonna build together all right so yo today real quick dope show talking about factoring oh my god expert yeah I got mr. Ben Colt from Riviera finance to really break down the gray area in fact we're gonna really get a deeper understanding of what factoring is why or why not you should use factor in and just really get into it I asked as much you know questions as I could possibly think of and you know Ben did a really thorough job of getting into the information so I really think y'all gonna appreciate this make sure you listen all the way through because these dis the type of stuff that you really need to understand you know when you start in a business you know the this is the things gonna keep you in business when you understand your financials you understand what the money is going you understand the contracts you're signing so you know don't sleep on this type of information you're really really important we love the inspiration we love the stories but we also got to make sure we focus on the meat and the stuff that's gonna keep us in business and keep us thriving and striving hi cha so you know what it is put your ears on put your ears on and if you smell something burning it's only your desire all right let's go what's up y'all this is Rob Mel Watley and welcome to truck and hustle the podcast for truck and entrepreneurs if you want to learn about the trucking industry from the business side of things you're in the right place every week I interview the people who are making it happen on a daily basis I get them to share their successes their failures and sometimes even their secrets the goal is to show you how you too can create financial freedom in the booming trucking industry so sit back relax and enjoy the show the biggest misconception about factor I would say is that is unnecessary so internet what I mean by that is is that people they they don't need the cash until they need the cash turn my mic up yeah yeah on the road to the richest life takes a toll like bridges go friends become foes snitches better watch your nose in your business alright man so listen y'all Hustle fam today we are gonna talk about a topic that is near and dear to everybody's heart man near and dear everybody's factoring factoring right so I brought on an expert mr. Ben cope of Riviera finance based out of Atlanta he's a development manager over there and you know I brought Ben on because I want us to be able to have a deeper understanding of our finances and of factoring you know all together so we start - Ben I thought he could be a great resource for us and he's just really willing to share and you know help us understand some of the the great areas that we may you know we may not fully fully fully get so Ben welcome to the show thank you for joining us today thank you for having me it's a pleasure to be you know on the show I appreciate you reaching out to me in looking forward to speaking to the truck and also family for sure for sure for sure alright so just a brief history let's just talk about how you got into into finance born and raised East Side Long Beach California went to high school out there Long Beach Poly high school go Jackrabbits but basically my senior high school I had to take economics just like most seniors in high school and a stockbroker spoke in my economic class and he talked about his experience as a stockbroker and the kind of money he was making and I didn't grow up in a nice situation from a financial standpoint so when he was saying he was making over two hundred thousand I was like oh okay what did you major in in college don't think about what I'm gonna do next right and he said economics I said okay cool so when ii was blessed to be able to get a scholarship to University of Arkansas at Pine Bluff HBCU small school Arkansas went to my adviser academic goodbye if she asked me what you want to major and I said economics she asked me why I said well this dude in a spoken mic and I'm a class and he make over 200,000 a year so I want to major the economics I was a results-driven person you know so Raina David I like it yeah she was like well that's not a good reason I said do you make over 200,000 imma stick to economics so uh long story short played for years there but graduating in four years got my degree and actually business management with a minor in economics okay and I interned at a equipment financing company okay my sophomore year after my sophomore year of college and then that and that internship when you were intern I mean pretty much what you do is you serve you know you go out there you ask truth in these stuff you make cold calls I'm sitting here all summer making 150 or 200 calls a day I ask people they need to buy equipment learning about credit applications collecting credit applications and that's how I kind of cut my teeth and I made a good enough impression that um when I graduated I was able to get a job there after graduation so I went back there and started off in equipment finance did pretty well at it for a few years and can't being young and not having a lot of responsibility I took a break and uh wina taught high school for a little bit so it's a high school math with a non public school serving probation kids and got married had a kid and said okay I need to make some money to get inside he get back into the finance world so that's how I got back into the finance world and was doing it I was in the space of same day cash like cash advance for businesses which is not the best type of money for businesses and I was looking at transitioning out of California and coming into the South because I had some experience in the south living there in college and got recruited by Riviere finance okay to take over the position I'm in now Business Development Manager for the southeast area based out of Georgia but we you know we cover everywhere out in the United States and Canada and I just hit it off with the work with the guy that was the vice president of sales at the time we were both from California okay so we kind of hit it off and I took over for a gentleman that retired about almost three years ago so one of the things that I liked about the factoring finance thing it of it I was I was kind of broker in factoring deals as far as this part of what I was doing before so I had some experience with it and I saw it as a better solution for cash flow for non bakeable businesses okay so when you're dealing with small businesses it is a little bit more difficult for them to be able to get a traditional line of credit from a bank or a business credit card and the fees are low enough where it makes sense for a cash flow standpoint to be able to pay a factoring company to collect on your receivables okay and if you cannot if you don't have access to the bank loans that are out there gotcha cuz you see a lot of small to medium-sized businesses the the big thing about a small business when you first started you know this being in business long as you had is you have two things you have like a knowledge which you're providing for a lot of people in the trucking industry thank you for that and you have and you have a lack of capital right and you have capital for different things you have two equipment side with the trucks and then you have you know obviously capital just to be able to pay everything you have to pay as a trucking company you got your insurance you got to pay your driver you know you're driving I want to hear that you didn't collect the invoice this week so you know I just saw it as a viable solution for small businesses and that and the fact that they've been around for 50 years and they had that you know stability in the industry that's what kind of Drew me to Factory but I've always kind of from a selling standpoint I've always been in the money so cash flow for businesses industry because there's a lot of small businesses out there and they need alternative you know lending sources and this is a my opinion the best lending source outside of you know a bank line of credit got you got you so for people who are just new to the term factoring what would be if you wanted to simplify factoring for people how would you simplify it if if someone asks what do you do how would you simplify for someone who hasn't been in the industry before not familiar with the term so I've bought I provide cash flow for your IOU okay my invoice is an IOU right so you invoice someone they owe you money but they're not gonna pay you right away what I do as I advance you the money on that I purchased that invoice for you and I handle your counsel Zoobles so you don't have to collect you can focus on building your business got you and let's talk about the process how does that process work when you first partner with a factoring company talk a little bit about the process so I'm glad you brought up the process so the first part of the process is you want to look at you know the difference the different type of factoring companies so you have a non-recourse factoring company and you have a recourse factoring company right so a non-recourse factoring company means that they guarantee the credit of your of your invoice the factored invoice okay and what I mean by that is is that when you factor in voice it's not a guarantee that the clock that's your client the shipper or the freight broker that you hauled a low for is going to pay on that invoice that freight broker could go out of business and go bankrupt and then you're stuck you still have to pay your driver you have to pay everything else so with a with a non-recourse factoring company we guarantee the credit of that of that invoice meaning of that if you factor that invoice with a non-recourse factoring company and the shipper goes out of business or goes bankrupt before if we collect on those funds we don't ask you for the money back that we've already given you on a factory invoice okay that's huge on a recourse absolutely absolutely we'll go in and add a little bit more soon on a recourse factoring company depending on each company what they do is they do not guarantee that so that means that you're personally liable for the for the funds that were given to you if that if your freight broker ship or if the end user does not pay that invoice okay it's typically anywhere between 45 to 90 days when you're either arge more fees or they actually pay back all of the money and there's two ways that that's paid back with the term and the factoring world is called a chargeback but the two ways that that's paid back is you either have to if you are not factoring new invoices you have to pay that back immediate through your personal funds or if you are factoring in new invoices they'll just take money on the new receivables and new invoices that will do to you so example you turn in your invoices for the week on Monday $10,000 invoices and then the next day you receive your ACH meeting the payment from the factoring company you only get $1,500 the reason why you only got $1,500 maybe it was because you know $8,500 was was too was collected did not collect on $8,500 from old invoices so they just took it out of your new invoices okay so they just take the money out of the new invoice they're not going to tell you they're gonna take it out of it they're just gonna take it out of it and you're expecting to have to pay you know again fuel insurance pay your driver for the ones that dropped off you know they're carried loads and everything and you're expecting to get you know ninety seven ninety eight hundred dollars and you only get 1500 that puts you in a bad spot sure right so that understanding that concept non-recourse recourse now you don't have to go with Riviere finance but just make sure you go with a non-recourse factoring company if you're good if you need to use factoring okay so that that's that's process there when you're when you're looking for a factoring companies non-recourse factor I want to focus on that when you're looking for factoring companies one you want to also look at the application and read every detail of the application there's five prints in applications now the reason why I bring up reading the details of the application not just the contract the application is because there are some factoring companies out there that in the verbage of their application it allows them to file or you see see a Uniform Commercial Code okay which and what it is all UCC is a lien that any financial institution who files on your business or yourself for whatever they're leaning against of what they're what they're financing against so in the world of factoring we're financing against your accounts receivables because we're buying your invoices okay so we're gonna file a lien on that in the gym when you buy a truck they file it against the truck so the whatever the collateral is the trust right yeah the asset which speaking of that just a side note when you but what you do finance your truck you want to make sure that they don't file a blanket UCC meaning all assets they put specifically on the UCC the piece of equipment that it is because that can inhibit you from getting other financing and banking as well as factoring so read that application fill out application you know you want to talk to a person if I'm the if I'm the trucking company now I don't own a trucking company but if I'm the trucking company and I'm not giving my legal advice or anything but I would want to verbally speak with a couple different factoring companies and ask questions ask them if they follow you see see if you found out the application you may be sent because if you're not versed on the verbage you might want to do an email response correspondence with the company making sure that they're telling you based on the application you're not gonna follow UCC right so that you have proof so if they do and if they do end up doing it you can make them reverse it right now in charge okay so you have your application and then the application process is well what I've been coming across for just dealing with prospects that are coming to me for factoring they're asking questions about being charged for an application really yes I've actually had people for some reason in Alabama area as well like because they come in there EHR and they ask to our charge and I the first thing I tell them if a company is asking you to pay money to apply the factory run away as fast as poss right right you shouldn't have to pay for an application okay but they're our company they're charge fees and typically it's not the actual direct lender okay the actual person that's going to be paying so broker that's trying to you know make money off of something if it doesn't go anyway guys okay so you have your application pro
ess and it's a quick process if you're dealing with a good factoring company that has quick response you should be able to find out if your application is pre-approved within 24 hours it shouldn't be a long process okay um if it takes longer than that typically that that kind of tells you about their service as far as when they when you're dealing with them and factoring invoices that means that they may not have enough operational staff God does that make sense makes not yeah so and real quick what are some of the things that will be on that application one and then two what's the other question I wanted to ask oh do you do do you typically pull credit personal guarantees how does that work are they looking into your your personal credit for that what was the credit checks sure so kind of going back to the non-recourse versus recourse recourse are kind of more focused on the personal credit and if your business is establishing the business credit because they want to know that you can pay them back if they buy invoices right there they're not gonna work on collecting as much pop possibly if they bought an invoice right as far as collecting on it so if they don't if your client the shipper or the broker doesn't pay they want to make sure that you are able to actually pay it back okay so it's more than a personal credit non-recourse we don't really focus on the personal credit as much you know we want to make sure that you don't have you know 20 judgments against you or something like that we we do ask for you know your personal information your social security we need to make sure your verify who you are with you look at the personal credit but it's more so on the credit of the companies that you're servicing guys okay because they're the ones that pay us right so in factoring when you factor it when you trucking carrier takes a load drops it off to a shipper right we ain't they invoice it to test a factory we sit into the ship make sure every all the documentation is correct assign bill of lading and everything and we give them the money on the load the shippers gonna pay us the money back right the carrier is not gonna pay us so we were more in tune with looking at the credit of the shipper or the freight broker then when you are looking at your personal credit okay well we do most companies do run a background check we more so for different things like stuff to make sure that you're not you know you're not in an act of bankruptcy you know we want to make sure you not an act of bankruptcy and then the biggest thing the biggest hurdle that I found of people not being able to get approved for factoring it's not paying taxes mmm saying okay okay the the entity that you cannot run from right yeah so you know obviously you want to be paying your taxes in the goal is not to have to pay any taxes you have a good accountant but you know you got to pay your taxes you know okay so that's the biggest hurdle I found and another thing I find an application process is people will you know do bat maybe have a bad situation with the company shut down the company and open up another company thinking the taxes are going to go away right trying to find a loophole so you know but overall I don't want to scare anybody an application process you know the underwriting is simple its straightforward we ask you about your business your business information make sure your business set up properly so and make sure that you know obviously you haven't committed fraud or anything like that and you don't have a bunch of tax liens or active bankruptcy open bankruptcy okay so that's that's pretty much all that we really look for and then as long as you have you know companies that pay their bills which we check the business credit of your your shippers and your freight brokers you know we have a good working relationship got you got you so how are you guys able to assume that risk being a non-recourse is it like is it just basically in the ground work that you do as far as looking into the companies and so forth and so on and and and and do you have times when you don't get paid I'm just curious from your business side like are there times where you guys have to chase these companies and you you you take a loss um so they actually question yes there there are situation where we take a loss but it's very low a very low percentage our standard is less than a 3% loss you know we wanted we want a zero percent loss but less than three percent and being around for 50 years the company has the data you know we've worked with most of the shippers and the freight brokers that have been around for a little while you know so with that data we're able to see we know who pays and who doesn't pay just through actual experience obviously we do our regular underwriting and we check their you know the business credit of the shippers and the freight brokers and it's funny that you mentioned that as far as how do we know how to what risk to assume and what not again experience of the company being around for a long time and then all our ops operational managers have been with the company over ten years mmm so they have a ton of experience and my local office here in Atlanta our operational office operational manager has been with the company over 25 years and all of our count executive teams all the account executives have been with the company over 10 years so it's just a ton of experience guys you know they know what to look for you know how to evaluate credit we know how much credit to give on particular shippers and freight brokers so just understanding what what they're how do you say the credit profile we can look at the credit profile and just understand exactly what the give on that that's and what happens with some of the newer carriers is they'll get linked up with if they're not if they don't have a dispatch service they may get linked up with like a we're a freight broker that's that's getting them look some good-sized loads but because it's a newer freight broker we won't approve the credit right because they don't have a credit profile okay in a situation like that a lot of times that's when they start looking for you know a different factoring company not understanding that it's not that we don't want to buy it is that it doesn't make financial sense for us to buy it because you know if they don't pay you know 97 98 percent of zero is zero for sure somebody else as well not you know right right second second guess that decision right right so they can say oh I'm not gonna factor in just hard to low but if you don't get paid on a loan you know so that's where we kind of protect you as well you know most most factoring company especially they're not recourse space they offer you fast credit check so where you have a customer portal you can look in there and see if they're already working with us and you can check their their credit um we use a simple green yellow red light system so green light they're automatically approved for a certain amount yellow you just need to call and check it might have been some issues and red right away yeah so we just you know we like to protect our customers the best we can all right cool so let's continue going through the process so now I'm a company I'm a carrier you know we've gone through all the paperwork so forth and so on I'm accepted we're working together what happens next so accept the paperwork beside we go through the agreement you know talk about the numbers make sure you're comfortable with the numbers we get you signed up with the with the agreement speaking of agreements we don't lock you in my copy over here finance we don't lock you into a long-term agreement okay okay our standard agreement as a year you know depend on the situation we can be flexible with that but our standard room is a year things to look out for in agreements in general when it to factor in anything else one read the agreement the entire agreement and the reason why I say that I can't tell you how many times I have I speak with individuals that have referred to me or call in and I asked them about their agreement and they have no idea what their term is right right how long the agreement is they have no idea if there's a penalty if they exit their agreement early which most agreements have some sort of penalty right right and then there's even agreements out there that don't even have the option of exiting the agreement mmm right so what you want to ask them is one show me where the term is if you're not going to read through everything telling everybody you should read through everything but you want to show want them to show you where the term is show that show you where the fees are where how much your cost is just to make sure it matches up with what you were told previously right and then show you how you can exit the agreement if you chose to exit the agreement and if there's a penalty so you can understand that part of it okay and then also if there's an auto renewal to the agreement and what Auto renewal means is that in agreements typically what happens is they if it's a service-oriented agreement like factoring is there is auto renewal to the agreement and you have to send a written notice to get out the agreement and a certain amount of time before the end of the term of the agreement okay typically it's anywhere from 30 to 90 days before the term of the agreement and just even make sure that you do that even if you're going to continue factoring with them so you have the option of looking at different options you know from a financial standpoint okay another thing in fact or an agreement is some companies require you to factor all of your invoices so you want to know if that's the situation that you're signed up into as well okay we don't require you a Riviere finance to do that of course we would love for you from obviously for a profit standpoint for us we you know we would love for you to do it it also is a benefit to us especially a new carrier to factor most if not all of their invoices just because we're kind of like because we're non-recourse it's kind of like an insurance for you if sold to speak if you think about it because we're taking on the credit of the factory invoice so it just protects you from if you don't you know get paid on the situation and we approve the credit of the of the factory invoice then you don't have an issue of losing you know the money on that entire lobe okay so you want to check out as far as that as well so understanding those three things you know fees term exit strategy if you need to yeah but we saw an agreement we verify your invoice and put the sign bol rahe trade confirmation sheet and then we fund that we fund that but depending on with factoring for trucking industry it takes a couple days to get the first initial and so if you typically were trucking if you apply on a Monday we can get you set up that that same week okay it takes a couple days because we have to do all the checks and everything and then get you all set up with the agreement once you're set up in the system and your customer Riviere finance or another factoring company most factoring companies like ourselves we fund same day if you submit your invoices by a certain time okay okay even if you submit after time obviously we try to factor it all day but if you know there's a cut-off point where you could actually fund you know anything because you know the banks have times where you have to submit it and they close so obviously we can only that's why it's a cut-off time right but yeah so you're assigned with with us we assign you a team an account exactly the account executive and that account representative okay okay my job along with my associate Elvia vega she is my business development representative she works out of our office our job is to bring you on board and to set you up and to be a resource for you okay then we assigned you to an account executive team that's in our office monday through friday 8:30 to 5:00 and their their job is they they collect it when you submit the invoices through the web portal you can submit it any way you want you can submit it through a web portal you can email it you can walk it into our office if you're local or you can sit in the mail whatever is convenient for you if you're techie or non techie whatever is convenient for you but you submit your invoice is most most carriers they submit it on once or twice a week guys your busiest days or Mondays and Thursdays guys are coming in from the weekend and then they want their money right before the weekend so so so it's up to you but just happen access to those multiple ways to send it in whatever makes the carrier comfortable we want to make sure that we you know work towards what makes them feel comfortable you got you got you and as far as collecting on accounts as the carrier I don't have any responsibility towards that you guys assume all the collecting and pretty much you give me you factory my money and that's a part of the fee that I'm paying you for it correct correct and that's it that's a non-recourse factoring um I've heard stories and I'm not I don't work for recourse factoring company by first stories where you know if you don't work at yourself a recourse if there's not a good ship or a good freight broker you might that's how you have to charge what's coming because you now keeping track of everything but we actively collect on it we don't hound them like bill collectors we want to make sure we don't ruin that relationship between you and them or you know the dispatcher in them or freight broker and vice versa so we just want to make sure that we do it in the way that it's supposed to be done so what I mean by that is is that we look at the process when we initially said sets you up and we'll work with the different shippers or the different freight brokers we look at exactly the process and how they want us to deliver the paperwork to him and we make sure that we follow that protocol with each you know each different shipper and different you know freight brokers so that we can get paid in a timely manner right we look at the process of how you know if they have a portal if we need to email it if we need the fax and almost so much fax anymore but email or a portal however is supposed to be submitted we make sure that's submitted properly guys you got you got you you know what everybody really cares about the numbers man the money or how do you guys determine how much you're going to charge a carrier for factoring you know when they're when they're just setting up with you guys and are there differences or is there a standard price how does that work yes it's different products different well different setups for pricing standpoint right so obviously and I was listening to your uh the podcast you did with Metro max okay DeMarco that was good and he was talking about how he collectively he comes with a group of instead of just him you got you know fifty truckers and then you get better pricing on insurance and factoring in different stuff like that so obviously the more trucks you have the more profit it is for us okay so you know a new person starting now is not gonna want to hear it is what you know the lower trucks it's the cost of doing business to everything right right so we got to pay for that account executive team you know we got to pay for our people incorporated run different checks and stuff like that we got to pay for all these different things so the fee is gonna be a little bit higher for someone that has one or three trucks versus someone that has five to ten trucks okay okay now the fee can be the same then depending on what pricing plan you go with so there's plans that focus on volume where the more volume you do the lower your prices overall okay and there's plans that focus on how long it takes for us to collect the money which if we collect a certain amount of time is this fee in the certain this like 30 days and then you know 45 days and so on and so forth okay but there's a max to it though okay so if you go with the plan that's based on how much time it takes for us to collect it then the fees are typically about the same I don't matter if you have one truck or you have you know 50 trucks but when you have more trucks you
ypically want to go with a bought what we call a volume type pricing where you can order a flat fee so you have time volume flat fee okay the flat fee is based on the size and the volume that you're doing if you're doing enough volume and we're able to make the profit margin that we need to make for our cost of doing business then we can give you obviously you're gonna have a lower fee versus if you have one got you and and what do you fees range from let's talk about from the lowest to maybe the highest and you know those type of extenuating circumstances just give us an idea for people who are looking to do business with Riviere so I'll talk about not just for every year about talk about the factoring in general okay okay okay so typically a non-recourse factoring fee is somewhere between 3% and 5% the reason why it's between 3% and 5% is because we do take on that risk and it doesn't matter how long it takes for us for them to pay us it's not gonna fall back on you okay so it's typically some somewhere between the 95 to 97 percent advance rate and what the advance rate is is how much money you get once you factor the lobe okay so out of a hundred percent of invoice for easy numbers $100 you get 95 to 97 dollars we hold on to that three to five dollars until we get paid and we rebate what we call a reserve back to you we paid whatever's left over okay once we get paid with this two bucks one buck you know we make that back to you okay so that's typically what you're looking at from a non-recourse non-recourse standpoint okay a recourse standpoint it's a lower fee but then you have the risk on the back end okay as far as if they don't pay within a certain amount at the time that fee that I've seen just for my personal experience is typically between 1.3 1.4 to 2.5% it's typically what you're looking at for more recourse standpoint god yeah if you're dealing with companies that are sniffers that you know are pretty big like a CAS Robinson that you know pay for irregular and stuff like that then maybe you're comfortable with the recourse product right but if you got if you just starting out and you need to grow you may want I would recommend if you start now especially if you're starting out you want to start with a non-recourse and overall keep a non-recourse obviously as you grow you can always renegotiate your fees some people won't magic might not wanna make me say that but yeah you could always read you know renegotiate your fees okay so um leveraging your growth we want to grow as a company we're live here fine as you want to grow with you okay and we want to we want to serve as she said she feel comfortable with this with the service it's a win-win for both sides okay if you if we have situations where you know company might try shop and there they come to the end of their contract and they leave us and they find out the service is not as quality as our service is because we have you know multiple operational offices to service you so when you call our office we actually answer the phone I don't know if you experienced that what you're trying to do a factory but we actually answer the phone you know we respond to emails when we make sure that you have communication if you're waiting on the payment you know we make sure that we communicate with you so we provide that service and we have three levels of three levels of service to you operationally okay so first level is the initial myself as a business development manager and then my associate Elvia Vega are best developed representative we make sure that we're always a resource to you okay so we don't just hand you off and we never answer the phone again I have clients call me all the time about different things they have questions about if they think something doesn't look right and I'm always a resource to them so that's the first source the second and most important sources are account executive team okay so you have a team that's dedicated as a scientist that you're assigned to that works with you locally it's a local team we always think sure as as local as possible to you and they're in the office Monday through Friday and it's to us a two-person team and one person both people are never out on the same day we don't know we don't approve that so we make sure there's always someone there and then we have our operational management team which is our operations manager and his assistant manager as well just in case you're not able to get ahold of your immediate team you have access to them as well during business hours and yeah access to me during business hours and after business hours cuz that's just what I do that's part that's my responsibility that's what I do so you want to be I want to make sure we you know hold ourselves accountable from a customer service standpoint and provide great service and a product of our great service is our number one referral source is our customers we get most of our business from our customers right now so that's that's that's big for us we're we're really big on that and we're making sure that we build those long-term relationships and we have several customers that have been with us for over ten years got you so um you talked about the the recourse versus non recourse talk about some of the other red flags that people want to watch out for when they look into factoring what are some things I should blare like that should stick out to you that you should live if someone's going through a contract what are like the top three things you would say in your experience they should be looking out for and say hey maybe I don't you know I'm one I want to look at this again you know just to be sure I want to do business with with this company sure so um additional fees well right so what about what I mean by additional fees is they'll talk to you about what they're factoring fee is but then sometimes they'll have a fee like administrative fee okay so they're say my fact you want to always look at your total cost of the financing okay you want to understand what your total cost of the financing is okay that's in any type of financing so but with the factoring side you have your factoring fee is there how much is their reserve is there an advance rate what's your advance rate is does it so when I say additional fees you have what they call a ACH fee okay okay which most factoring companies have them we do we have an ACH fee you know and that's just the cost when you submit what we call a schedule of accounts which say you in a week you run us one truck truck runs you know ten loads right they do ten loads and they turn in the ten invoices with the beat the zombie oil is a rate confirmation sheet and they want to factor all ten invoices that's called that they submit a schedule counseling it shows all the invoices that's in there okay could be done electronically or manually you submit your schedule and then you want to get paid when you get paid to charge the ACH fee you have option of a CA a check or a wire okay typically a ACH feet and a wiring fee the wiring fee is more than the a CHP because it's charged on sometimes the charge through your bank and it's a charge from the bank that is sending the money as well okay so that's why I said charge for into that typically wires are not free okay some factoring companies do give ACH for free depending on the situation okay okay so you just that's something that could be negotiated fees if you don't feed if they don't collect within a certain amount of time okay okay so typically when it's not a certain amount of time say it gets past 60 days so then the recourse fee maybe it's one point five percent but if they don't pay in 60 day they charge you four or five percent more that can be in there I'm not so using it as the exact numbers which I got and then administrative fees maybe they charge you this your factoring fee is two percent but you have a two and a half or three percent administrative fee so total fee is five percent right but all you're thinking is the two percent factoring fee you're not even thinking about the minutes traded fee yeah that doesn't even doesn't cross your mind and typically they're kind of the same like if you're factoring fee is 2 percent of your administrative fee is 2 percent you're paying total 4 percent so it can be if you're not paying attention to looking at it it can look like oh maybe that's the same thing using it maybe it's you know it's the factor for you in a ministry for your the same thing we give it a traditional advance you know based on whatever price and structure that you choose but there's some companies that say although they give me a hundred percent of the invoice well then how do they make money so is these charitable donations is the right so so when we see something like that and we look at the agreement is what typically what it is is they build up a certain amount of reserve based on a volume of that that trucking company is doing right so is typically it could be like a $10,000 reserve so after you you build up a $10,000 reserve you get a hundred percent of the invoice because we can just take out of that ten thousand that's your money then we're just holding on for you and collecting interest on it for you probably right you are right but they hold on to their feasts or like that I'm gonna preserve of ten of ten grand typically that's that's what I've seen in different agreements so it's tough it's things like that that you'll see you know from from a different fees additional fees like that in reserves but you know a company asked them everybody has to make money write this out you just have to you know look at and make sure that you're not paying above and beyond you know adding up all the different costs and what's your total cost for the finance guy that's what you want to look at you don't want to necessarily look at what the factoring fee is what's my total cost for the finance is there any other additional fees or anything like that okay so in the trucking industry Riviere finance to specifically talk about us you know we we have a wiring fee okay because if we get charged on that - we can't lose money right ACH fee negotiable and then we don't pay we don't charge for like checks if you want a hard check or anything like that cut out - okay one of the things that separate us as well a lot of a lot of carriers are from my experience what I'm seeing are starting to step into the freight broker world as well they want to get all of it right right we want we are one of the few factoring companies out there that will factor both freight broker side of it and the carrier side of it guys so yeah you know you have a company where you can have everything in one house got you that's okay lot of trucking companies factor that factor Trucking's do not deal in both space you know so they it all deal with the the freight broker side of it so they we have that option for you as well got you just curious when you um when you take on new clients what's like the the top reason why they come to Riviera it's supposed to who they are working with previously so the biggest reason I would say is David one they've heard great things about us well cuz our customers are our number one referral source you know so they've heard that the service that we provide heard about the service that we provide were very personal as far as making sure that we're taking care and you handle the needs of our customers you know we take that very seriously you know the are our actual experience is huge and that aspect of it okay then the true non-recourse side of it okay so kind of going back to the agreement a little bit a company can say that they're now recourse but if they're gonna charge you additional fees after a certain amount of time that means are just not recourse until what 90 days or 60 days right or if the you got to make sure if there's no no no out to that part of it as well when it comes to being our recourse so you can look for that language in the initial contract and just really dialed down on that are you recourse in our recourse that should probably be one of the first things you look into yes absolutely and then also and I'm sorry to backtrack my fine no talking about we were talking about the additional fees so as a business right when we're talking about factoring you're you're servicing you know these shippers and these freight brokers right and they're supposed to sin when you factored in voice it's supposed to send payment to your factoring company people that have been in the business know that sometimes accidentally accounts payable for the shipper or the freight broker will accidentally sin that check to you the trucking company the carrier right right and as a carrier if you know you factor the invoice you're supposed to turn over you know that check to the factoring company you will hope so right but there are factoring companies that will charge you huge fees for you just receiving the check really and it's rain is written in their contract okay yes actually so if you accidentally receive a Jagan and you and you don't get that get it to them within a certain amount of time and it's sometime just like 24 hours how you receive a check how you gonna get it to them in 24 hours yes yeah so um that's another added fee to look forward you know as far as that kind of thing but you definitely wonder if you do receive a checking do you want to turn it over because obviously you're gonna be liable for that money and if you cash it more in a couple times your factor company's probably not going to fact on the fact that you anymore you know so you just want to make sure you don't ruin that relationship but that's just another thing that's crazy I mean that probably doesn't really happen often but it has happened to me before so I know what you're what you're referring to and you're looking at like man I'm about to get paid twice I'm about to be the money it's really about your money so you guys we got to do the right thing right you got to the right thing cuz it just protects herself in the future you just don't want to have a headache in the future when you expecting you know to get paid on future invoices and we got to charge you back because you didn't you know turn over that check industries you guys working as far as factoring you just don't do trucking right you also work some other industries as well yes we do so um the biggest are big our top three industries that we were working as a trucking is the top and then we got staffing and manufacturing okay but we factor invoices for any business that invoices and other business okay so that can be you know it can be like cabling you know our there's a lot of people working in the space of 5g that's used technology where they're installing different equipment from unintended attending equipment and and we do a lot of stuff with government contracts as well you know state on the state level mostly okay so you have for example I have a client that is a janitorial service any services the airport right so they clean the hoods for the different restaurants the hoods it's the hood over you know the restaurant style stoves yeah go in they clean out the grease traps - for and it's a huge account because they do it for most of all pretty much all of the Atlanta Airport almost the restaurant sitting there no okay yeah so but any business that services another business we we will factor the invoice trucking is the the lowest risk industry believe it or not because you can't really dispute the invoice no because you have a society uh either they drop you got the loader you didn't and you said you did because you signed to bol so that's the lowest risk but yeah we we service any business that invoices another business and we pay for referrals no biggest well talk about that what do you pay for referrals let's talk about that real quick yeah so uh we pay we pay our clients we have a client referral program it's a very exciting client referral program pays up to a thousand dollars we have a per referral you know and we also have telling me right now if I get the couple of thousands of truck and hustle audience to all go to you I'm getting I'm getting I'm getting my little piece for my niece so yes yeah so we have a broker for a program where
you get paid a percentage of the fees you know that we collect from you know on the invoices and that's ongoing you know so just depends on you know what the situation is but we make sure that we take care of the people that were first business we appreciate all referrals um we handled with care I like that I like that biggest misconception about factoring the biggest misconception about factor I would say is that is unnecessary mmm what I mean by that is is that people they they don't need to cash until they need the cash mmm okay so they come they think that they have enough built up you know in reserve cash or you know heaven forbid if they think that they have enough in credit cards to last them until you know they get paid and you know 30 days it's necessarily mean 30 days if you know if you've been few know the industry you know if you'd be 45 it could be 60 and then they get to there with their wit's end and their counts about the gold negative and they gotta make payroll and they got to pay insurance and they come at the last minute you know so whether I like I would encourage any especially startup trucking companies is utilize factoring for at least the first year or two and don't spend everything that you get in you know you gotta control your overhead um you know don't start buying you know lavish stuff you know you know but build up you know bit up your cash flow for your business you know then eventually you know you have enough reserve where you may not need to factor every invoice or you may not need to factor any at all but know that it's definitely necessary for the first few years unless you just rolling in dough you know then you know you good to go but but yeah it's definitely needed for the first few years don't wait to the last minute you know we're still the hustle and bustle to make sure we get you you know the cash that you need as fast as possible but don't wait till the last minute and even though I'm saying that don't wait to the last minute people gonna do it anyway now you're right man it definitely is necessary a hundred percent for any sustainable growth in a businessman you you have to have that that that factor in that that resource because you can't grow without it I mean like you said covering payroll different expenses so forth and so on is necessary is just a matter of connecting with the right company that's gonna that's gonna take care of you and treat you right and be fair absolutely all right man listen you you you provide us with a ton of knowledge I think the truck and hustle audience definitely understands factoring 100 percent now is there anything that I didn't ask that you'd want to add you know just just just for the people that I may have I may not put out there all I can add is just make sure you look at multiple companies you know course you know people I would want to say you know come to me come to Riviera finance but you want to look at multiple companies look at the pros and cons look at their agreements you know make sure you take a look at their agreements and understand the agreements you know as best you can you know for those they don't have access to you know legal resources and whatnot but look at multiple companies and make sure that when you're initially starting that you get set up with a non-recourse factoring couple I know you we already talked about that a lot but I got a hone in on that because it's so key it's so key is so important I just I get these horror stories where they come to me and they're like man I couldn't pay my my driver because they charged me back and now I don't have a good driver and you know how hard it's and it's in the trucking industry to find drivers you know so just just honing in on the non-recourse honing in on you know making sure that you're not locked into a long term contract and that you have a exit to it you know that's the biggest things and I'm working with somebody that's going to be a resource to you you know that you actually can get a hold of you know call their office see if you get a hold of some money man right man I think I think you gave the audience or they need today man where can the truck and hustle audience connect with you've been connect with Riviera to talk about that social media website okay yeah so we're on Instagram at Riviera underscore factory underscore ATL and that's our IV ie RA underscore factoring underscore ATL okay and you can email me you can my email as be as a my first name pin my last name cold so be kolp be C as in cat ul P as in Peter at Riviera finance calm okay that's our IV ier a finance fi na and c e calm email me there I even put our office number out there for zero for two three seven two two eight six and you can call me or text me on my cell area code five six two five four four seven two one seven now listen when yet when you messages are blowing up and your phone's blown up don't call me brother cuz the hustle family move fast alright community action takers bro so you know an eight when they hear some good stuff they gonna move on it man for sure but listen I appreciate you for speaking with me today man you you definitely cleared up a lot of things put a lot of value out there thank you so much for joining me today on truckin hustle man you're welcome and I appreciate you having me on I appreciate what you're doing like I said it's putting a lot of information out there and for all the people that are looking to get into the trucking industry already in the trucking industry please take advantage of Rob males information the podcast that he's putting out there he's having some great people on here that are talking about things that are important educate yourself so that you can learn from other people's experiences thank you for the plug man I appreciate it i hustle fam we out til next week i cha later if you like what you heard it's only gonna get better make sure you subscribe and leave us a comment let us know what you want to learn or hear more about till next time love is love truck and hustle [Music]
