How long does it take brokers to pay? I want to own my own truck one day and seen on a posting where a broker said they would pay within 37days?? You dont get paid when it gets delivered?
O/O running own authority
Discussion in 'Ask An Owner Operator' started by Redbeard007, Jan 15, 2017.
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There are broker's that won't pay for 45, 60, or 90 days...
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How can you survive like that with 1 truck?? Guess my plan of buying truck and trailer cash running my own authority and having atleast 20k in savings was a good idea!
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We all also pay someone money to fund our Receivables. The brokerage 100% guaranteed has a credit line with some bank that they use to pay trucks before their customers pay them when their customers take their sweet time paying.
Some of my customers take 45 days to pay. My brokerage pays loads that have no issues in 21 days which means our average days to pay hovers around 27.
EDIT: I'm not covering my receivables either. It's included in my agency agreement that I have with my freight brokerage. I get paid every week, but I definitely pay for it somewhere in the 40% they get. My customers typically owe me ~600k during the produce season though... So I'm in no danger of floating that any time soon. -
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mhyn Thanks this.
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Thats why the rule of thumb when starting out is to have at minimum,... 90 days of operating AND living expenses. Plan for a worst case scenario. Never assume or count on money that is not in your account.
This is also why you set up your income before you ever buy a truck or any equipment.
Cash is king. Always will be. Gives you the leverage and sustainability that you will need in order to survive in this business.
You have to understand that your first year will be a huge learning curve. There is so much to learn and understand. You will make mistakes. You will have problems. You will need to be able to survive them and develop your strategies from what you learn. The longer you stay in business the more comfortable you will become at handling any problems that may come your way. The only way to gain the experience needed is to make that leap and just do it.
Hurstswaggerjacker, bowhunter67, whoopNride and 1 other person Thank this. -
freightwipper, redoctober83, whoopNride and 3 others Thank this.
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whoopNride, gokiddogo, Eldiablo and 1 other person Thank this.
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Really it depends on broker or shipper. If it's broker load be sure and read the broker carrier agreement the payment terms will be in there. Some brokers pay quickly with no fees like anywhere in range of 2-15 days. I have some regular direct customers that pay every week. And some direct customers that pay on 30 days and some that pay COD
Ruthless Thanks this.
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