Tetra Capital’s Matt Moore was recently interviewed by Wayne and Shela Campbell of
Matt joins the show at minute 26.
A few highlights from the interview include:
“You need to have a business mind, and it’s okay to use factoring companies. If you don’t have all the capital in the world, you need a factoring company. I’ve met a couple of drivers before in my life that own a couple of trucking companies, and they use factoring companies. It’s a good thing. It’s a support system that truckers need. And, Matt, I want to thank you for being part of the good side of factoring.” -Wayne Campbell
“Tetra is helping drivers out by providing a service that’s on an honest level which is hard to find. It is like mechanics out there; many just want to rip you off.” -Wayne Campbell
“We try to simplify the process. But at the end of the day, a contract is one thing, it’s what you deliver that matters, and we try to get the best people, including the best account managers. People who are honest and upfront about what we’re trying to do, and often, it’s not what is in the contract; it is how we deliver on that. And if we’re not a good fit for somebody, and they want to try somebody else, then that’s the right thing for them. And we’re not going to charge them fees and hold them hostage. If we’re not the right fit, we’re not the right fit, we’ve got to earn your business, every single load you factor with us.” – Matt Moore
“Typically, the fees in factoring are around 2% – 3%. And that is what it is… We provide our clients with the percentage that you pay on each invoice. And that’s it. We’re not charging invoice fees. We’re not charging all these things that are surprises for people. Again, we try to keep it simple so that people can know what to expect, and there are no surprises. They’re not frustrated, worrying about if they’re being taken advantage of. I think that honesty is one of the biggest struggles, not just in trucking but in everything. Am I getting treated fairly in everything I do so I don’t have to stress about it? And that’s what we try to do. ” -Matt Moore
“It is my understanding, from previously speaking with you, that not every contract is the same. You tailor the financing and work with the driver.” – Shela Campbell
“Yes, we have several programs. Many people want to have a simple program, but we have several clients working with specific brokers who pay us at specific times or require certain paperwork. To help drivers in those situations, we will customize contracts and how the rates are set up based on the brokers that they’re working with. Some brokers have plenty of money to pay so, you know you’re going to get paid, so in turn, your rates can be lower. We try to make sure we customize a program so that when you are running freight, and we know we’re going to get paid, and we know it’s slim for you, we customize it to make that a little less of an impact on those low-rate loads.” -Matt Moore
“You said tailored, so you don’t just get people in and out? You don’t treat people like a truck number? You can provide an actual personal based service on top of that. Is that what you’re saying?” – Wayne Campbell
“Yeah, it’s personal. And probably the biggest testament to being personal is they have a specific account manager that they’re working with day in and day out who gets to know the nuances of their business. For example, when they call because they are thinking about working with a new broker or shipper, we can advise if we believe it will be a good or bad fit. We’re customizing it for them from top to bottom.” -Matt Moore
“One of the markers that tells us that we’re successful is that over 80% of our new clients are referral business. And that wouldn’t happen if our clients weren’t happy.” -Matt Moore
“Unfortunately, I think people know that drivers are in situations where they don’t have a lot of options and will take advantage of that situation. My advice for drivers is to know that in the industry, you have to read everything. As frustrating and as limited of time that you have – read your contracts, read everything. Also, get partners upfront when you start in this business before you need them. Find a good mechanic that you can call, get a good factoring company. Find somebody that can help you with all the nuances of your business that you trust before you get rolling.” -Matt Moore
Full transcription of the interview
Wayne Campbell
We have a guest this morning. I’m going to go ahead and bring him in.
Let’s go ahead and bring him in. Let’s say hello to Matt. Good morning, Matt. How are you, sir?
Matt Moore
I’m good. Thanks for having me.
Wayne Campbell
Please, introduce yourself and give us a little background about you and how you got into this line of business.
Matt Moore
I grew up in manufacturing and then ended up with a stint in banking for about ten years. And then, about ten years ago, I got to know the people at Tetra Capital, and they were starting out and starting to grow. I got a chance to join their team and be a part of something new in the transportation business, something that was trying to change and bring a little bit of transparency and honesty into the transportation finance business. We came out of some requests for people needing financing, and they were struggling to find somebody that was a good fit for them. And that’s how Tetra came to be.
Wayne Campbell
You know, here’s the deal. There’s a super scam within trucking. Okay, whether it’s a lease-purchase, whether it’s a factoring company, it’s somebody in the driver’s pocket. Okay, you said that, you know, what you’re talking about. You came into this to make a difference. You wanted to help the driver and be transparent. Every driver is big on transparency with brokers and this and that. Speak about that. How are you transparent? What are you taking from the driver? Are you clear on what you’re taking? And what is the experience going to be for people?
Matt Moore
There’s no legal document that is simple and easy to read. But what we’ve tried to do is create a contract that is as plain as can be and straightforward. We send them to the trucking company, let them read over it, see if they have questions. We try to simplify the process. But at the end of the day, a contract is one thing, it’s what you deliver that matters, and we try to get the best people, including the best account managers. People who are honest and upfront about what we’re trying to do, and often, it’s not what is in the contract; it is how we deliver on that. And if we’re not a good fit for somebody, and they want to go try somebody else, then that’s the right thing for them. And we’re not going to charge them fees and hold them hostage with stuff. If we’re not the right fit, we’re not the right fit, we’ve got to earn your business, every single load you factor with us.
Wayne Campbell
Okay, so factor, factoring companies. For those who don’t understand what a factoring company is, what exactly do you do?
Matt Moore
The simplified version is, once somebody runs a load, they’ve got an invoice, we pay you for it upfront. And we take a small percentage of that to give you the money upfront and do all of the back-office work for you. We do all the collecting, all the follow-up calls. All the stuff on that invoice so that you’ve got your money, and for the most part, you don’t really have to worry about it after that. You can just focus on the next load and what’s in front of you.
Wayne Campbell
So, you take a small fee. Right, you take it, you provide a service, and you’re saying you provide a quality service. Alright, so what are you taking from the driver?
Matt Moore
Typically, the fees in factoring are around 2% – 3%. And that is what it is. Because it’s a very, very labor intense financing vehicle that a lot of people use. But what we try to do, and we’re not the only ones, I don’t want to say we’re the only factor that’s a good factor out there. There’s, a lot of good factors, there’s a lot that you should probably be careful of and cautious of, but there’s a lot of good ones. But what we try to do is say, look, here’s the percentage that you pay on each invoice. And that’s it. We’re not charging invoice fees. We’re not charging all these things that are surprises for people. Again, we try to keep it simple so that people can know what to expect, and there are no surprises. They’re not frustrated with us. They’re not frustrated, worrying about if they’re being taken advantage of. I think that honesty is one of the biggest struggles, not just in trucking but in everything. Am I getting treated fairly in everything I do so I don’t have to stress about it? And that’s what we try to do.
Shela Campbell
Right.
Wayne Campbell
And that’s important. It’s important that you provide a decent service because the trucking industry, it’s not that big, and reputation is very, very key in this industry. My I have a good reputation for being a jerk, and I like taking pictures of trucks, do videos, and put them on air and stuff like that. But here’s the deal it is the experience. So, you provide a service, okay, this industry is not filled with a bunch of professionals anymore. It’s filled with people. It’s just weird. It’s crazy the way this industry is today. So, but experience service, what sets you aside from everybody else, man?
Matt Moore
Honestly, it comes down to our people. We take a lot of pride in the fact that our team doesn’t change, hardly ever. We have people that have been here for years and years and years. We have two salespeople, and they both have a lot of experience in the factoring business. So, when people have questions, they can answer them, they’re not running around, trying to figure things out, it’s great. But our account managers, honestly, that’s where the magic happens. We have well-seasoned, top-notch account managers. When people have questions, when they have concerns, when things need to be followed up on, our clients have phenomenal relationships with them. And that’s honestly, our special sauce right there.
Shela Campbell
And so, the other day when I was talking to you, it’s kind of my understanding that not every contract is the same. You basically tailor and work with the driver.
Matt Moore
Yeah, we have several programs. Many people want to just have a simple program, but we have several clients that say, hey, I’m working with specific brokers, they pay us at specific times, or they require certain paperwork or certain things. And so, we’ll customize contracts and how the rates are set up based on the brokers that they’re working with. Obviously, there are some brokers that have plenty of money to pay. So, you know, you’re going to get paid. But in turn, your rates are usually low. We try to make sure we customize a program so that you’re running freight, and we know we’re going to get paid, but we know it’s slim for you. We’re trying to customize and maybe make that a little less of an impact on those low-rate loads.
Wayne Campbell
So, you’re realizing the struggle and the driver and dealing with the meat on the bone, as they say, they’re not going to be on the phone these days. You know, we talked about the other day, we are not going to mention names because they choose who to work with. Okay, but I want to ask you this, you said something tailored, so you don’t just get people in and out? You don’t treat people like a truck number? You can provide an actual personal based service on top of that. Is that what you’re saying?
Matt Moore
Yeah, it’s personal. And probably the biggest testament to being personal is they have the same account manager. When they come on and join us, we do an introductory call with their account manager, and they get to know their account manager. And that’s who they work with. It’s not that they just call in and get anybody. They have a specific account manager that they’re working with day in and day out. They get to know the nuances of their business. When they call in and say, hey, I’m thinking about working with this broker or this shipper, we can say, hey, you know, for you, it works great. Or maybe it’s somebody that is not a good fit for that broker. And we can say, hey, maybe you should consider somebody else. We try and take new trucking companies and give them people we think would be good for them to get started with. We’re customizing it for them from top to bottom.
Wayne Campbell
Do you work with a lot of one-truck companies? Owner-operators that have just one truck and they’re just coming into the game?
Matt Moore
That’s our bread and butter. That’s the core foundation of our business. We have a decent amount of clients that are bigger 5 – 10 – 20 truck companies, but the vast majority of our clients are one truck guys who are getting started. They’ve driven a truck for a while but want to do it on their own and need the right partners in this business to be successful. And that’s what we’re trying to be – a great partner for them.
Shela Campbell
So how easy is the application? Say that some drivers are listening, and they’re like, wow, that sounds awesome. I’d like to find out more, and they decide now. How easy is the application? Is it something that they can actually do online? Fill it out online?
Matt Moore
Yeah, they go to our website, tetracapital.com, or give us a call. On the website, there’s an online application they can fill out. Honestly, it doesn’t take that long. We tried to simplify it as much as we can. Because we know how busy drivers are. And there’s just not a lot of free time. But we welcome anybody who doesn’t want to do stuff online to call. We’ve got a great sales team that can walk them through the process, fill it out and get them going and set up.
Wayne Campbell
Matt, it sounds like you care. You know he’s okay, and the one thing I’m going to say, I’m going to be honest, he took the time out to talk to us on Friday, and it was a great conversation. We talked again yesterday, briefly. And then you were here on time today. You made sure you’re following up on it. It’s important that you’re getting your name out there. Because this industry has got a lot of people that come in, and they go. So, when people use your service, are they staying?
Matt Moore
Yeah, one of the markers that tell us that we’re being successful is that over 80% of our new clients that come on are referral business. And that wouldn’t happen if our clients weren’t happy. I think that that says it right there.
Wayne Campbell
Yeah, if you are scamming, it will get around quick, trust me.
Shela Campbell
Yeah, we are jabber jaws around here.
Wayne Campbell
With that being said, they can find you at tetracapital.com. Okay, you’re obviously doing what you need to do to help the driver. And it’s important. You said something to me the other day, if they’re not happy, what happens?
Matt Moore
Yeah, we’re not successful. We if they’re not happy, it doesn’t work for any of us. The drivers are the foundation of this industry. And if they’re not taken care of, all of us are going to fail along the way. So, we’ve got to make sure they’re successful, period.
Wayne Campbell
And in the end, we really don’t want to piss them off, right, Matt? We don’t want them to stop because then what happens? We all suffer.
Matt Moore
Yeah.
Wayne Campbell
I wanted to make sure I got to one thing for you today because you made me feel good yesterday, that there are people in this world like you, and it’s not just for truck drivers. It’s for kids out there that are in foster care. Tell me about what you and your wife do.
Matt Moore
We have four biological kids. My oldest is 21. About four or five years ago, my wife and I were talking about what was the next stage of our lives, and she mentioned fostering. So, I said, okay, let’s go take the classes and see what’s going to happen. Long story short, we finished the classes, and the last person came in to talk to us, and they said, I have an infant, can you take him? We’re like, okay. And so, literally the next day, she sends us information, and we’re at the hospital with a newborn baby boy. And we got to bring him home on Mother’s Day. You’re going to make me get emotional.
Wayne Campbell
Breath, brother, breath.
Matt Moore
Yeah. And then we got to adopt him.
Wayne Campbell
I’m going to pull you right out of there. Dude. Sunshine and roses every day. Seven people under one roof. How many girls and how many boys? What’s the balance there? Brother. Talk to me about that.
Matt Moore
So, my oldest is 21, and she is a girl, and then I’ve got three biological boys. And then we adopted my foster son. And then we’ve got a foster daughter, who we probably will be adopting in two to three months. And then we have a two-month-old who’s biological; my wife just gave birth to her two and a half months ago. So yeah, we’ve got one family and then another family.
Shela Campbell
Oh, my goodness. You are on your toes all the time.
Matt Moore
Yeah, it’s nonstop.
Shela Campbell
We don’t want to throw you off or anything. If there’s anything that we didn’t get to that, you would like to add. Is there anything that you’d like to hit on real quick before we go over to see if anyone has comments for you?
Matt Moore
You know, I think we covered everything. I just want to say thank you for the opportunity to be on and share our story. And tell to drivers, thank you for all you guys do. We got to witness, during the start of Covid, how critical and important drivers are. And I think it was a great reminder to all of us, not just in the industry, but in this country, the role that drivers play, and I want to say thank you to everybody for all that you do day in and day out and what you put up with.
Wayne Campbell
They are amazing people, and they are important to us. They’re the heartbeat of America, and they should be treated that way. And Matt, it seems like you’re doing the best you can to treat them that way. Remember, success relies on your service and what you’re providing in the end and how you’re presenting it and how you’re delivering it and how you’re doing it, and how you’re treating people—gone through it myself. You know, I don’t say things all great all the time. But I’m upfront with what you’re getting. I told Matt the same thing. I’m a wild guy, like the Howard Stern of trucking. Don’t ever tell me you’re not taking advantage of drivers. Change my mind about factoring companies because I’ve been against factoring companies. The thing is, you need to have a business mind, and it’s okay to use factoring companies. If you don’t have all the capital in the world, you need a factoring company. Right.
Matt Moore
Banks won’t lend to many trucking companies.
Shela Campbell
I would imagine that would be true for new owner-operators just starting out as well, too. Right?
Matt Moore
Yeah.
Wayne Campbell
Well, and the thing is, I know a few people in the industry. I’ve met a couple of drivers before in my life that own a couple of trucking companies, one or two, and they use factoring companies. It’s a good thing. It’s a support system that truckers need. And, Matt, I want to thank you for being part of the good side of factoring.
Matt Moore
Thank you.
Shela Campbell
Great. Right, we are going to pop over to the comments.
Wayne Campbell
Ellie asks, “what’s the fee?” Okay, we covered that; it was 2% to 3%, right?
Matt Moore
Yeah, between 2% and 3%. But again, for people in unique situations, we love to customize how that fee is structured so that we can keep what they’re paying manageable. Because obviously, if we don’t have to have money out as long, we can lower those fees. We’re just trying to do what we can so we can keep our doors open but do the best for the driver and the trucking companies.
Wayne Campbell
It goes back to what you were saying tailoring the fit. When you go to get a suit, you have to get a tailor. You don’t walk with one leg longer than the other. Right. Let’s go back over the comments. John Kammerer says, “Tetra really is an exceptional company.” Your getting comments over here from YouTube. A YouTube viewer is saying you’re a great company. So obviously, you have a little bit of a reputation out there because we’re not that big of a show. Your reputation is obviously bigger than our show because it got to here.
Shela Campbell
Ellie asks, “How long have you guys been in business?”
Matt Moore
So, Tetra Corporate just celebrated its 35th anniversary. Tetra Corporate has multiple arms of its finance business. But as the factoring company, we’ve been around for about 11 years in specifically transportation factoring.
Shela Campbell
Right, nice. And you guys are based out of Utah. Is that right out of Utah?
Matt Moore
Yeah.
Wayne Campbell
Utah, my favorite place. I worked for a trucking company out there called CR England. Now I want to go over to Kevin Slater’s comment. He says, “some of those factoring companies are cooks.”
Shela Campbell
That’s true.
Wayne Campbell
Do you mind talking about that? Matt, what is this deal with this bad reputation? Talk about that.
Matt Moore
Kevin, I’m not going to argue with you. Unfortunately, as we try to bring some clients on and they’re currently with factoring companies, a lot of times they’re getting held hostage. I’m not talking about a $500 fee. I’m talking about fees in the 10s of 1,000s of dollars for somebody to try to leave a factor and come over and work with us. And to me, I mean, I can see people saying, hey, we need a few $100 to close out an account and follow up on stuff after the fact. But these factors that are charging 1,000s and 1,000s of dollars to somebody because they’re not a good fit. That’s not right. That’s how we feel, that it’s not right.
Wayne Campbell
Right, like Kevin Slater says, “holding money.”
Matt Moore
Yeah, and that happens in the industry as well. There are some contracts where there is money set aside, and instead of having that available for clients to use at their discretion, it’s kind of locked up and frozen. And we have clients that want escrow accounts, and they love it because they have a blowout and it is $1,500, and they don’t have the money, and they have this escrow account, we can just send them the money right then, and they can pay for it. But it’s their money. It’s not our money to hold hostage.
Wayne Campbell
Okay, that is a whole other episode, because we can go into all these companies that hold this money, put them in these accounts, it would become escrow accounts for themselves, and they grow, and they grow, and they grow. They make a ton of money, like banks, and they start making that interest. Don’t think that they want to hold on to it for a reason, right? Because it’s more valuable to them holding it instead of letting it go. That is another show. What I want to say is thank you, Matt, because we can go on and on and on for days, we have to move the show along. We have trucking news to get to and stuff like that. Matt, I would like to have you back again. Actually. I would like to check in with you more often. Honestly, thank you for what you do for kids. Man. You and your wife, it is an amazing story on top of the great icing on the cake with the helping drivers out by providing a service that’s on an honest level. Okay, it’s hard to find; it is like mechanics out there; many just want to rip you off. Matt, one more time, they can find you at Tetra Capital. Right. Go ahead and visit tetracapital.com, is it?
Matt Moore
Yeah.
Wayne Campbell
All right, or they can call you here at (801) 676-0182. Again, (801) 676-0182. Matt, dude. You rocked it, bro. We had a great time. But I would also like to extend an invitation out maybe to a panel show someday with people from different sectors of the industry. You guys all talk about the things that go on about robbing drivers, taking advantage of drivers, and not being there for the driver. You know, there we go. Before I let you go, can you say that there is a big super scam within this industry?
Matt Moore
Unfortunately, I think people know that drivers are in situations where they don’t have a lot of options. And unfortunately, there are those that take advantage of that situation. My only advice is for drivers to know that in the industry, you have to read everything. As frustrating and as limited of time that you have – read your contracts, read everything. Also, get partners upfront when you start in this business. Find a good mechanic that you can call, get a good factoring company. You know, find somebody that can help you with all the nuances of your business that you trust before you get rolling.
Wayne Campbell
Right. That’s straight from Matt with Tetra Capital, you guys. Again, you can find them at 801-676-0182. Again, that’s (801) 676-0182. Matt, it has been a pleasure, sir. Please have a great day. Tell your family we said hello, and to all the drivers that you work with, let them know that we’re here for them to listen to.
Matt Moore
Thanks, Wayne. Thanks, Shela. I really appreciate the time today.
Wayne Campbell
Matt, we will talk to you. What a great interview today.
Shela Campbell
Yeah, he was great. And the integrity, I think that was the word you wanted to use.
Wayne Campbell
Yes, it was the integrity of the company that seems to stand on its own.
