broker not paying.................
 

ok i had a previous topic on here about a broker maybe not paying........ its been 25 days, on the 31st day, what to do(besides call and say where is my money), the terms were 30days after receipt of bills, do i threaten to try to get there bond or something like that(i heard someone say something like this b4)

also, when dealing with a broker that does quick pay..... do you need to sign something for quick pay? i mean is it a seperate service or something? reason i ask is i done a load for a broker who did quick pay and i got paid COD no problem all i did was tell him i wanted quick pay, but with broker im dealing with in this topic, she said she done quick pay then, when i delivered load she said i didnt sign up for it and can "sign up" for it on the next load...................?

Yes,always get the quick pay signed.You may not have to on every load,but you should with every broker.You said terms with that broker are 30 days upon receipt ?? If you mailed your paperwork allow for the good old mail to add a couple days to your pay time.In my office one of the problems some carriers have is they need to remember it is days upon receipt,not just the invoice date.

If you haven't received payment in 30 days, you could make a phone call and ask whether payment has been sent. If not you can inquire as to when you can expect payment. It isn't time to file on the bond. I would expect about 6 weeks for payment to be received once you have mailed in your bills. Some will pay sooner. If you want to sign up for quick pay, you will need to do so in writing. When you sign up for quick pay, you will usually have your bills discounted from 1/2-8%. You need to be aware of the discount rate and when you should expect payment. Read your documentation carefully before signing anything. It may be cheaper for you to factor rather than paying the broker a quick pay fee.

ok good,,, the brokers office is only about 10 miles(if that) from the house that only reason i took load with broker with bad credit, and my father in law drives for this company(its a small company), so should i expect payment in 6weeks even though terms were 30days?

No way do you just accept 6 weeks. Call them up, say you're making a courtesy call to remind them that invoice #xxx had 30-day terms and the balance is now due. See what their response is and take it from there. They may claim that they never received the paperwork or that checks get cut on Friday and yours goes out then. Whatever the response, get them to commit to a time-frame for payment. If that day comes and goes it's time to not be so nice. I've always found that the "courtesy call" usually gets the desired response.

yea i was gonna take your advice that you gave on the last topic about this a few weeks ago... on the 29th day call them and give them a reminder that payment is due,.............. they commited to a time already though..30days correct? well see what happens, i got the load thru getloaded.com so i can put my credit experience with them down. i will also let you guys know what broker it is if they dont pay in 30days. Getloaded.com says their credit rating is an 82, but checked it 2 different other places and rating was in the low 60's

Keep in mind alot of times it is net 30 days. Only count the week days, no weekends or holidays. This would make 30 days take 6 weeks. I always send in an invoice with open bills as a reminder when time is getting close. This is a way of letting them know you are keeping track. Sometimes if people don't call they will let it ride for as long as they can till they hear from someone.

The reminder invoice is a good idea, I fax my past due invoice with POD and contact info requesting check number and date mailed. If the broker is 10 miles from home, find out when they cut and sign checks and go pick it up in person, invoice and POD in hand. A 60-82 credit score is a broker to AVOID!!

What is the lowest credit score that would be generally deemed acceptable?

I generally call on calendar day 30 and "inquire about payment for load 3 XXXXXX". If they say that payment is on schedule I ask for a check number.

If for some reason payment is not on schedule, they will usually have an excuse. Then I ask for the telephone number of their bond company ( I have it anyway) and this usually gets them to promise a check tomorrow.
Dont let them talk you into this "we only run checks twice a month and the next run is 13 days away BS". That is not your problem.

I have never had anyone tell me that 30 days = 6 weeks.

"Net 30" does not mean 30 business days. It means the net or balance of payment, i.e, the total minus any upfront payments such as advances, is due in 30 calendar days.

I generally don't do business with any broker who's credit score is below 92. If someone has a score below that you are taking a chance in whether you will get paid. I have done business with a broker with a lower score, but I got a very good rate and received a check before I delivered. If I take a load where I am to receive a check prior to delivery, the load doesn't come off my truck until I have a check in my hand. When I mentioned up to 6 weeks, I was allowing for delays in the mail. Terms are usually from the time the broker receives the paperwork. Most brokers value their credit rating and will pay in the agreed time. You need to allow for contingencies to protect yourself.

Why anyone would not pay the $5.25 it costs for Priority Mail w/delivery confirmation, I have no idea. Using 30 days from postmark to postmark is the only method that is completely reliable and indisputable. It eliminates the uncertainty, and excuse, of "mail delays", gives you ammunition when charging late fees or just asserting that payment is late, and shows you're willing to do what it takes to protect you're own interests.

Even if you agree that payment terms are 30 days from receipt of paperwork, 30 days until what? The broker will try and tell you he's got 30 days to cut the check. What bills does anyone here pay, other than your taxes, where the creditor is satisfied if you mail the payment by the due date? Payments are due ON the due date. All B2B I've been involved with works this way. Don't accept the mail delay excuse, it doesn't happen near as often as people think. Invest in a method that takes the ambiguity out of the process and get your money on time. And by all means, charge a late fee. You're already extending credit at no charge, don't give away even more of your money.

all of these are good ideas........that was my next question, what do you charge for late fee? do you charge a % of $ due per day? or something like that? and if you charge a late fee, does that need to be in the rate confirmation sheet? do they need to know ahead of time that you will charge a certain rate when bills are past due?

I'm horrible. I just feel good IF I get paid, eventually. MOST of the brokers I deal with pay me in a more or less timely manner. One beat me out of the load by going out of business, changing names, then right back in business with the same people at the phones. THAT one pissed me off. Another one took over 2 months to pay. But most of them have been pretty good...

If they are not at least a 90, I will not haul. Anything lower probably means slow pay, no pay or other issues. A good broker will pay on-time to keep you hauling his loads versus hauling the competions loads.

On the net 30 day thing, my wife just called me an ass. :? My bad.

I note a late charge on all invoices. If payment is not received by the due date, then a late charge applies. One thing to encourage early payment is to offer a cash discount such as 2% 10, net 30. If the bill is paid within 10 days the broker may discount the bill by 2%. Otherwise, the entire amount is due. If a company is paying hundreds of thousands or millions of dollars in freight charges, 2% mounts up quickly. I am not saying you should offer 2%, but it does work in some cases.

You just file on their bond, that usually gets a reaction quite quickly.

If you stick with those with good credit ratings, you usually don't have to worry about filing on their bond. If they go out of business and start up under another name, you probably won't get much anyway. The best thing is to check out new brokers before you haul anything for them. I NEVER commit on a load with a new broker until I check them out. Taking a load from an unknown broker without checking them out is like an accident waiting to happen. You will never take out all of the risk, but you can greatly minimize it by doing your leg work.

this is true, i know now believe me!!!

I will mention one thing. I did take a load from a broker with bad credit about a year or two ago. I told him that I would need payment before I would take his load. He overnighted a check to my bank, so that I had my money before I delivered the load. I rarely take a load from a broker with bad credit. I won't take one from a broker that has a poor credit rating unless I get payment in full before the load is delivered. Usually it will be before I even allow the load on the truck. The problem with doing business this way is that it takes extra time and effort to accommodate these people. In the case of the above broker, it paid well enough to justify the extra effort. This is something that each individual must decide for themselves. Unless the load had an exceptional rate, I don't think that I would bother with the load.

If a broker has a low credit score, first I check to see how long he has been in business and see if he has involuntary revocation. Next I check to see if his bond has been filed on and if he has any outstanding debt. Sometimes things happen years ago that cause their score to drop. I usually dont go under 90 credit score. I will give a new broker a chance with their loads "small amounts of money" to see how they are until we build that relationship and I know they will pay on time.

Like GMAN said, including the late payment charge on the invoice is sufficient. However, always remember that the payment terms need to be in writing; either in the contract or the confirmation. Most of the time I'm not worried about not being paid on time. But if I think it might be an issue, I always make the broker put the payment terms in the confirmation, even if it's already in the contract. Likewise, I don't bother with late payment language unless I have reason to think it might be an issue. If I do include penalties, I like to use a combination of a late charge and interest. For instance "Payment not received within 30 days will be subject to a $50 late fee and interest in the amount of 2% of the outstanding balance per month."

Those amounts may vary depending on who I'm dealing with.

No need.................wife said check came in the mail yesterday!!!!!!!!!! :lol:

So how many days to pay?? Will you haul for this broker again?? Waiting on your money can be pretty stressful.

27 days to pay, yeah i would haul again........but i would use the quick pay :lol:

you got uptight about 27 days? man that's about as good as it gets. I have one at 90 and a couple at 45-60.

no i didnt get uptight about it i was just more or less worried about how often do brokers pay on time