question about brokered loads

ya im working on it now i need to show him what it cost me to do the load fuel,driver pay,ect he said it is a loss just cant right off the full amount on top of my cost

 

He's right.

You're deducting the costs that you incurred and that's all you get to deduct.

 

I've only been rip'd off on 2 loads from "Black Dog Trucking " out of East Freedom, Pa.,, has been almost 6mo's and have seen nothing except excuses. Seems they are notorious for it,, several lawsuits and they keep going,, now that's our great justice system at it's best,,lol.

For the most part, I've gotten paid for all my loads from other brokers,, some have a 30 day pay but,, I use Capitol Freight and get it in 2 days.

 

Why haven't you filed on their bond?

 

@ keepntruckin you mentioned u use(d) captitol freight to get your $ in 2 days..are they reliable how often do you use them and what percentage do they take per load to get you your money?

 

ive only had 1 load that took 4 months to pay other than that everythings been good here. i also looked at the fine print afterwards and the broker was only open 4 6 months at the time i took the load.So maybe he was just going through bad time.they are still open though because they called and had the same load two weeks ago lol......i kindly said no thanks.who knows maybe if they actually stay open a couple years ill haul for him again.

 

I'm going to add something here that will maybe help you new authority holders. I wouldn't haul a load for someone in business for less than two years unless: 1. They had quick pay (this shows a financially sound new business) or 2. They had some very SOLID credit references with much larger companies. I didn't haul quite a few loads that had decent money on them simply because they wanted thirty days to pay, and their credit didn't justify more than 1 day.

 

A factoring company is not a way around avoiding bad debt. You still have to choose your customers carefully in the first place. I use Freight Capital, which may or may not be the same as keepntruckin mentions. They're reliable in my experience and offer a couple of different options cost-wise. Others here will disagree - you can do a search for "factoring" and get that detail. I won't hijack this into a factoring topic, but only mention that factoring companies will have approval for non-recourse funding.

In other words, if the broker is new or on shaky ground, the factor will either not buy the invoice, or will fund it with full recourse only. That means if they don't pay, you'll still be on the hook to the factor for the money they paid for the bad invoice.

Most of them will let an invoice run 60 days before they want to collect it from you. For that reason, along with potential claims and whatnot, they will fund a reserve account. How they do that and how much is required depends on your track record with them.

Expect any of the factoring companies to fund 80-90% within a day or two, then release the balance minus their fee once the payment is received from your customer.

 

Forty is right...I use brokers and none of them are in the so called red for credit.. i also get a signed contract and payment due within 10 days of signed delivery bills once they are faxed off.. i have also turned down good paying loads because of credit ratings and slow or non pay complaints...