Shipper/Broker Payment Question

Discussion in 'Ask An Owner Operator' started by TechTruck, Dec 4, 2011.

  1. Dec 4, 2011 #1
    TechTruck

    TechTruck Bobtail Member

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    Sep 18, 2011
    New York
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    Hello Truckers,

    What is the industry standard - and what have you seen - for being paid by companies that need product to be shipped, as well as brokers? Net 30, Net 90? or something different?

    Thanks

    I ask because my team and I are in the process of building a technology that will allow for companies that ship product to engage with truckers/owner operators directly. One thing that we need a bit more clarity is payment schedule.

    thanks,

    Bryan
     
    TechTruck, Dec 4, 2011
    TechTruck, Dec 4, 2011
    #1
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  3. Dec 4, 2011 #2
    ShortBusKid

    ShortBusKid Heavy Load Member

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    Dec 5, 2010
    Vegas
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    In my experience its generally 30. There are a few large companies that go 45 or 60 as to official terms. Do not recall anyone on 90 day terms in my experience and I certainly would not do business with 90 day terms.

    Most brokers allow for a "quick pay" option with a discounted rate to the trucker - generally 1.5 to 3 % and the payment is usually made in a day or two to a week.
     
    ShortBusKid, Dec 4, 2011
    ShortBusKid, Dec 4, 2011
    #2
  4. Dec 4, 2011 #3
    LSAgentOZR

    LSAgentOZR Road Train Member

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    Nov 1, 2011
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    They have programs like this out there already. Check out Shippers Direct and things of that nature.
     
    LSAgentOZR, Dec 4, 2011
    LSAgentOZR, Dec 4, 2011
    #3
  5. Dec 4, 2011 #4
    BigBadBill

    BigBadBill Bullishly Optimistic

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    Oct 2, 2010
    Chattanooga, TN
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    Industry norm that is set and tracked by the larger factoring companies is 30-days. Beyond that and credit score gets dinged. We make 3% on our money every 30-days. Someone paying 45-days is going to have to be paying me better rates to compensate for that lost income.

    BTW - I have found the better paying companies pay weekly. Worst case is if my invoice hits after the cut date I get paid in 10-days.
     
    BigBadBill, Dec 4, 2011
    BigBadBill, Dec 4, 2011
    #4
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