.svg)
.svg)
.svg)
.svg)
Meet Melvin
A fleet owner who saved $39,170 after switching to Outgo
Background
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.
Problem
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 was also 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.
Solution
Melvin makes the switch
2.25%-2.98%
Rate with old factor
1.50%
New Outgo rate
1.05%
Average rate on Outgo platform
Learn more about Buyouts
Getting a better rate
To get started, Melvin went over his existing contract with an Outgo Buyout Specialist. Then Outgo provided Melvin with a new rate, sent a buyout agreement to all parties, and purchased his outstanding invoices.
How is average rate calculated?
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 with his previous company.
“I felt that Outgo was a more modern platform. And the rate was very competitive. Plus, there was the debit card option, so I thought I’d give them a try.”
That try turned into some serious cash savings. Since completing his buyout, Vanguard Transportation has saved over $39,170 on its factoring over the past year and a half.
But Melvin wasn’t done finding savings. He cut his factoring rate even further using Outgo’s Smart Factoring. The Outgo platform allows customers to reduce their 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.
Learn more about Smart Factoring
$27,320
Saved with new rate
$11,850
Saved with Smart Factoring
$39,170
Total saved
While the money he saved was great, Melvin also saved himself the time he’d previously spent on invoicing, waiting for funding, doing collections, and other administrative tasks.
Non-recourse factoring for less than recourse
Melvin asked, “Why am I paying for a factoring company when they should be doing [the collections] work? I should only be submitting the paperwork...I don’t like the fact that they were charging me and also not doing their work correctly.”
With his previous recourse factoring, if his factoring company didn’t collect payment from his customers within 90 days, then he had to buy back the invoice and attempt to collect from the customer on his own. This meant Melvin found himself spending a lot of time doing collections to ensure he received payment.
“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. That’s a headache that we don’t have to deal with. Making sure we’re collecting or following up with customers, payment status, whatever it is, we have Outgo handling that on our behalf. It’s a huge help.”
Streamlined invoicing
For Melvin, Outgo’s modern financial platform was a definite upgrade when it came to invoicing, too. He described his previous factoring company’s platform as “a little weird” and “not user-friendly.”
As for invoicing on the Outgo platform, Melvin said it’s “pretty awesome and straightforward. I don’t think it’s difficult to navigate. Anybody on the platform is gonna be able to upload invoices without having any issues.”
Recourse vs Non-recourse
Decide what’s best for you
Improved funding speeds
Outgo’s industry-leading funding speeds were a big improvement over his previous factor, too. “Their time to fund was never that quick,” said Melvin. “You had to submit your paperwork by around 10am PST to get funded that same day. It was never right away.”
With Outgo, Melvin’s funding speeds have been steadily getting faster and faster the longer he’s on the platform. This year, his average time to funds is just 32 minutes. And this month, it’s been only 23 minutes.
Learn more about our funding speeds
61m
First six months
32m
Second six months
23m
March ‘25
Savings
Moving forward
Now that Melvin has fixed his company’s factoring, he said he’s focusing his attention on better streamlining his own operations to make them more efficient.
But busy as Melvin is, he did have time for this one last question: What would he say to someone who’s considering Outgo?
“You guys are an excellent factoring company.” said Melvin. “They wouldn’t have any regrets. I haven’t had any regrets at all.”
No regrets and $39,170 in savings and counting.
We interviewed Melvin on 3/11/2025.
We calculated what he "saved with new rate” by comparing his new 1.5% rate with Outgo to what he would have paid had he continued invoicing at 2.25% on his previous factor’s platform.
”Average rate” is calculated by dividing his total factored invoices by his total factoring fees.
We calculated what he "saved with new rate” by comparing his new 1.5% rate with Outgo to what he would have paid had he continued invoicing at 2.25% on his previous factor’s platform.
”Average rate” is calculated by dividing his total factored invoices by his total factoring fees.
Find a better rate and a better factor.
Outgo offers great rates, excellent support, and fast funding speeds.
Start saving
