Why Outgo

A fleet owner who saved $39,170 after switching to Outgo

Background

Problem

Solution

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 and more across California, Arizona, and Texas. But 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 he still felt that was too high. Already frustrated with time-consuming collections and a platform that wasn’t user-friendly, he started thinking about a change.

“As time was going by there were other companies offering better rates,” said Melvin. “You know, I’m paying a higher rate, they’re not doing their job, it’s time for me to move on.”

He felt frustrated because his recourse factoring left him spending more time trying to collect payments his factor had failed to secure. Instead of operating like a partner, Melvin said his factoring company acted "more like a business. Just not caring about the customer. The fact they treated me like that just didn’t give me any reasons to stay with them at all.”

So Melvin began researching other factoring companies online and discovered Outgo. He filled out a quick form on their website and connected with an Outgo rep.

Melvin makes the switch

Getting started, Melvin went over his existing contract with an Outgo Buyout Specialist. Outgo provided him with a new rate, sent a buyout agreement to all parties, and purchased his outstanding invoices.

After the buyout was complete, Melvin started non-recourse factoring at his new Outgo rate of 1.5%—a substantial improvement from the 2.25-2.98% he had been paying for recourse factoring.

He discovered that Outgo’s modern platform allowed him to reduce his factoring rates to 1.0% on Outgo Debit Card purchases or by waiting to factor until day 30. By utilizing his Outgo Debit Card on most of his transactions, he was able to save even more, lowering his average factoring rate to just 1.05%. The result? An additional $11,850 in savings on factoring.

Non-recourse factoring for less than recourse

Melvin's previous recourse factoring meant he had to buy back invoices that weren’t collected within 90 days. This prevented him from focusing on more important aspects of his business.

“Outgo makes our lives easier,” said Melvin. “We just gotta upload the rate confirmation and the PODs and then (Outgo) goes and does the whole collections.”

Streamlined invoicing

Melvin described Outgo’s invoicing as “pretty awesome and straightforward. I don’t think it’s difficult to navigate.”

Improved funding speeds

Before Outgo, Melvin's previous factoring company never had quick funding times. “Their time to fund was never that quick,” he said. With Outgo, his funding speeds have improved; his average time to funds is now just 32 minutes, and this month, it’s only 23 minutes.

Moving forward

Now that Melvin has fixed his company’s factoring, he’s focusing on better streamlining his operations for efficiency.
“Well, you guys are an excellent factoring company,” he stated. “They wouldn’t have any regrets. I haven’t had any regrets at all.”

Summary

Melvin was interviewed on 3/11/2025.