Hot Bread: What’s up with this crooked 30 day wait to receive our money?

Most brokers are not pre-paid matter fact sometimes they wait for their money 45 to 90 days. also PaperWorks got a clear and you Gotta make sure there’s no damage, is everything in order the right way . It just protects the broker if he pays you just boom right away lots of times he can take a loss in the end.

 

due to the nature of truck-specific logistics, the inevitable delays and complications that plague that mode of transportation, the general reputation of millions of different independent trucking companies preceding their arrival to complete a load booked through a third party, prepayment of services using an OO 'business' (1 truck, or a few trucks) without sufficient reputation and business relationship is an understandably laughable prospect for a shipper to even consider.

FedEx and UPS has one face and one customer support number, you pay them up front and they are at your service without question, any issues are immediately addressed, etc etc. While 1 OO could wear that same professional face and get it built to secure regular prepayment agreements, he can't wear a professional face for the rest of the OOs that exist, and unfortunately he's outnumbered by a staggering number of unwashed 'alternative transportation solutions'.

the larger the logistics company, the more you could expect to secure in the way of prepayment for services, based on your reputation and publicly vetted functionally dependable business model. Until you have that x-sized face on your business and the reputation attached to it, nobody knows you any different from the next stinky tard.

basically, thank your buddies...

 

Another thought on the subject is why does everybody know how this works going in,but once they’re in all they do is gripe about it!
Even the customers I haul for day in and day out wait anywhere from 10 to 40 days to pay me, And they’re not brokers!

 

OP you don’t have much business experience I guess. Net 30 it’s actually pretty quick for payment in the business world.

One of my investments is I own a piece of a diesel repair shop. We do a lot of vehicle maintenance for two of the railroads in town. It’s often between 90 and 120 days before we see the money from a repair and often carry over 100k in owed money on the books.

When I did snow removal it was usually June or even July before I got paid for the last few snow events.

Also very few businesses that do any volume between them bill each job. They bill at the end of the billing cycle. Usually a month. So sometimes it could be 5 or even six weeks before they get the bill for a service preformed on the first of the month.

 

I was gonna say, "Wait, I can get paid in 30 days? Sign me up!"

 

I would even imagine FedEx and UPS would bill quarterly or annually with their largest clients, Amazon, Sweetwater, B&H etc. No way they charge by the package one at a time piecemeal...they have accounts like a bar tab, it stays open and acts as a buffer for what's been shipped and what's owed, it gets paid in chunks like quarterly taxes.

 

The 30 day net pay thing is in a lot of industries.

As others pointed out..30 is considered quick. 60 is used also.

Be thankful it's not quarterly.

To be fair it drove me nuts when I had to deal with it when I was doing wholesale buying/selling. It's just how a lot of businesses pay their vendors.

I always figured it was easier to settle your accounts every month or so, vs trying to do it daily, etc. No clue if that's the reason but it's what I guess is partly behind it.

Sirscrapntruckalot - What if the hokey poke IS what it's all about?

 

When do brokers get pre-paid for a load?

 

All the time according to the OP.
Sound like another that entered the business not knowing how things have been done for years.
You want to haul direct for the big companies you need deep pockets, most will pay in 60 to 90 days or more,
There was a company in OKC that made cooling towers that all the carriers wanted to haul.
Saw different carriers in there all the time, because they would not be able to keep one carrier because the didn’t pay their bills.
Agent called me offering a load out of the company and I told him they don’t pay and he replied don’t worry about it.
They got burned for 35k. I got my money because I am leased to a company that pays me regardless if they collect or not.agent ate the loss.
If you call on a customer and they are eager to do business right away be aware of their credit, their eagerness is a bad sign.