If I lease on to a company, do I collect the load pay myself?
Discussion in 'Questions From New Drivers' started by Clutch D. Diesel, Sep 15, 2021.
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Yeah, they gonna get paid before you
bzinger Thanks this. -
Have you signed a lease agreement? Everything should be in the agreement, what percentage, when do you get paid?. If it is not, It could be a problem later.
lovesthedrive Thanks this. -
Part of the what you get with a lease is factoring. Generally you're paid weekly, for all load completed the previous week. Some pay by the load after it is completed.
On the other hand the company gets paid up to +30 after they invoice. And depending upon the efficiency of any given companies billing group it could be 1 to 2 weeks before they get around to invoicing.Truckermania, bzinger and brian991219 Thank this. -
Was thinking about going O/O instead of company because I think I could swing it by July and was surprised at how fast someone offered to take me on.
However, the guy has a ... reputation let's say, and I would run not walk if he got his hands on the money first.
I have looked over some agreement terms that should be included in a lease but couldn't find anything that really said who got paid first, but it looked like generally the MC holder would and then I'd get paid by them. I understand why, but with him I just don't think I'd do it.
He's down with me dispatching myself, which I like. I'd just have to pick either he does it or I do so there's no confusion ever about loads/availability.
Tell you what, it's a lot of liability for him to take on a brand new O/O like that. He's Hot Shot and would like to get a Class 8 running too.
I suppose he has more to lose than I do, but still ... -
Every lease I've seen or used has a section on payment.
usually something about paying within "14 days of receiving all paper work, including POD, Delivery orders, logs inspections, etc."
However most settle weekly and are paying the operator long before collecting that actual revenue. Most carriers do attempt to speed up processing loads and getting invoices out as quickly as they can.
Matlack would process any terminal's papers as a unit traveled around. The terminal would close it out in the computer and add it to the overnight bag to Wilmington. Overnight all the closed manifests would print invoices to be matched up to the overnight deliveries and mailed unless there was some question to research first. any lease operator's settlement was credited every Monday morning and sometimes a guy would think a load should have been on this week's check and I would look at the invoice date in the 'Puter and the invoice date would indicate that it WILL be on next week....
Payment times are affected more by the customer who takes longer to pay when times are slow.Speed_Drums Thanks this. -
Leases where 1 or 2 pages. Now.. is a book
Speed_Drums and nikmirbre Thank this. -
Speed_Drums Thanks this.
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Most of the time the shipper pays the broker. Sometimes there is no broker and the carrier bills the shipper. Even with drivers running their own authority most will see the Broker as the one that gets the payment first. There are many hands in that kitty way before that kitty reaches the driver! This is one aspect of trucking you need to learn!
bzinger and Dockbumper Thank this. -
WrightTrucker33, Patriot_Bearing_Supply, RockinChair and 3 others Thank this.
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