Rate Confirmation Question

you have the just of it, aircard, copier and laptop, all can come and go thru your email acct.

 

You're asking a lot that has been covered in the sticky threads at the top of the o/o section. There's also a lot of threads about factoring pros and cons, along with email/faxing out of the truck.

Your question about invoicing hasn't really been described really well anywhere I've seen, and a good question IMO. The answer is: it depends on the broker, and/or factoring company you use. Some companies will accept everything electronically while others want the paper sent in.

No matter how they accept it, here's 3 items you have to produce in some form to get paid:
1. Your invoice
2. Signed rate sheet
3. Signed BOL

Here's some lessons I've learned that may help you:

• The invoice should include the same high level detail as the rate sheet. If you can find a sample invoice to use as a template for yours, you'll be ahead of the game. The invoice is your demand for payment. Make sure it's complete and correct. You do want to get paid, and in full.
• Check and double check your invoice before you send it. Make sure the amounts, and any details, agree with the rate sheet. Be extra careful if you are using an earlier invoice to a different customer as a template.
• On your invoice clearly note any accessorial charges and enclosed receipts. Example: broker issues a Comchek for lumpers and asks you to return the receipt. If you just drop the receipt in the envelope and don't mention it on your invoice, payables will assume it was just an advance to you and short your pay. Don't ask how I know that LOL. A good rule of thumb is: if you include something in your invoice package, it should be described in detail on your invoice.
• The original, signed BOL is gold. If you send it for payment, make sure you have at least copied or scanned it (in color preferably) for your records.
• Make sure you have all BOL pages. They will always have pagination somewhere - i.e. "page 1 of 2". Learn to look for that and make sure the shipper gives you all of the pages, even if page 2 is blank. You will need it. Trust me.
• Make sure you sign your company name on the BOL and check the times. This is your proof that you (your company) actually delivered, and on time. Make sure that's right so nobody else can claim your load or say that you were late.
• The more complex your load or route is, the more you should carefully review your documents. If you do one pickup and five drops, review the package 5 times. With sealed, no-touch loads and all the BOL pages, those will get confusing. Be very careful with your paperwork. Make sure everything reconciles forward and backward.
• Read all the fine print on your rate sheet before you agree with anything. Make sure your invoice agrees with that fine print. Example: Lumper fees again. If you're not careful, you can get stuck with an advance fee and not see it coming until you get short paid. What the guy tells you on the phone is as good as the paper it's written on. I caught this one when a broker was pushing me to advance fees. When I told him that my fee would be higher due to my cost of money and his receipt would be my invoice, he backed up and agreed to increase my rate to cover his own fee for the transaction. He got his receipt for the expected amount and I did not pay for an advance I didn't ask for.
• Did I mention to check every detail carefully? The payables department you send your invoice package to is paid to find ways not to pay you. Make triple sure all your eyes are dotted and tees are crossed.

It sounds like a lot, but it gets easier with practice. Spending a few hours on the phone un-screwing a mess you've created for yourself also helps you get better at it.

 

Red did a great job. What I would add is that some brokers play games on delaying the payment. I have been making it a habit to call a couple days after sending invoices to call and make sure they have everything.

Some of the favorites that brokers use to delay payment:

- We need originals. And of course when they get the fax they do not bother to call and say that.

- Misssing W-9 - even when it was sent with packet. I have started to include an additional copy with invoice.

- Missing page of BOL - I have started adding on the BOL - page 1 of 1.

- No signature of customer - even when it is on the BOL. I make sure now that I indicate that what signature is the one signing for the delivery.

I am sure there are many others but seem to be the ones that I keep seeing.

 

Could not have described it better!
Just one more thing, make sure your seal number is written on those BOLS and signed by the receiver. And ALWAYS write SLC ( Shipper load and Count) if they don't let you see what's in your trl. Have them sign it before you leave, to avoid claims and short pays.
Good luck to you!

 

Also, be aware that you have to follow up for payment . . . I find that a good percentage of brokers wait until you call them to cut a check! So I give them 35 days from my mail date and then I'm calling and asking for payment and if they start making excuses I let them know "I shouldn't even be making this phone call!" You gotta stay on top of it though or you will get burned. I am happy to say we've NEVER factored or cash advanced a load and never got burned . . . YET! Have come awfully close though...collected just barely on atleast three occassions before the broker went belly up . . . i.e. Truckers Express, SMG, Turbo. We've even made physical house calls to collect . . . it's come that close...had we not, we would not have been paid. Be careful who you extend credit to in this "risky" business! Best of luck to you!!

 

before my neighbor will haul a load he calls and checks the brokers credit rating out. Bad report,no haul. Roy

 

I would highly recommend a factoring company and a non recourse at that. Yes its about 4-5% out of your pocket but at least its a guarantee on payment. I'm sure when you are driving, you rather keep a sound mind and clear thoughts rather than worrying when the payment will come in. And if you use a factoring company, you will know the credit of the broker before you goto haul the load.

Originals are pretty much the industry standard now. Its not required in many instances but it delays the payment process from the brokers side.

 

You are correct,
But just some food for thought...
A transportation company will charge an O'O usually 10% and do all the work for him. Do you think for the difference of those 5% is worth to deal with all the headache, insurance..etc?