Factoring is outdated. We do so much more.
A fleet owner who saved $39,170 after switching to Outgo
Background
- Owner of Vanguard Transportation LLC
- 11 trucks
- Based in California
Problem
- 2.25%-2.98% rates
- Recourse factoring
- 10am funding cutoff
Solution
- Easy-to-use platform
- Smart Factoring
- Faster funds
Savings
- 1.05%
- Average factoring rate
- $39,170
- Total savings
Learn how he did it
An expanding fleet hits a road block
Melvin Sandoval started Vanguard Transportation in 2016 and eventually built it into a fleet of 11 trucks, delivering LTL partial shipments across California, Arizona, and Texas. However, as his fleet grew, so did his factoring challenges.
Paying more, receiving less
When he started factoring, Melvin’s initial rate was nearly 3.0%. Over time, he negotiated it down to 2.25%, but still felt it was too high. Frustrated with time-consuming collections and a user-unfriendly platform, he began considering a change.
“I was paying a higher rate, they weren't doing their job, it was time for me to move on,” said Melvin. His recourse factoring led him to spend more time collecting payments that the factor failed to secure.
Exploring other companies online, he discovered Outgo. After filling out a form, he connected with a representative.
Melvin makes the switch
- Rates with old factor: 2.25%-2.98%
- New Outgo rate: 1.50%
- Average rate on Outgo platform: 1.05%
To get started, Melvin reviewed his existing contract with an Outgo Buyout Specialist. Outgo provided him with a new rate and purchased his outstanding invoices.
After completing the buyout, Melvin started non-recourse factoring at 1.5%, a noticeable improvement from his previous rates.
Getting a better rate
By leveraging Outgo’s Smart Factoring, Melvin lowered his average factoring rate to just 1.05%, yielding an additional savings of $11,850 so far.
Moving forward
With his factoring issues resolved, Melvin turned his focus on streamlining his operations for efficiency. He provided strong recommendations for Outgo, affirming they were an excellent factoring company without any regrets on his part.