Negotiation Tactic ?

Problem with that is it shows weakness. On one side a broker can use the quick pay to keep the rate down but worse is that good broker you may want a longer term relationship with may stay away because you seem iffy.

And it can also be how you play it. Maybe ask about if they will pay off emailed BOLs and when they cut checks. Or if they have other payment options. Likely they will offer something up if they have it.

 

I think you're over-thinking it too much. Personally, I don't buy into the mental strategies so much. You know a quick pay comes with a discount. Just ask. If they think you're desperate because you asked, then you know how to say "NO" to the crappy rate offer. The End. If they assume it's because you're desperate, well.. you know the breakdown of the word "assume."

If you're factoring, you may have an advance option that is invisible to the broker and may even cost less. Mine will do 40% for $20. Yeah that's stacked on top of any factoring costs when the invoice gets cut, but it is what it is. Good for beating payroll to the bank by a day, just not sustainable. The broker never has knowledge and your cash flow stays your business. But let's not turn this into a fast money factoring thread.

The easiest way to get $100 added to the rate is get the broker on the hook and just ask for it. Works for me about 80% of the time. Out of a crappy market, not quite as much. They either want the load moved or to sit on a dock while they cherry-pick a bottom feeder and waste your time on the phone.

 

When they offer quick pay, decline it and say "I know you already factored that quick pay discount into the rate, so you should be able to throw me another hundred, right?" You might get $50 or you might get a laugh. Either way you win.

 

we use a factoring company for %5 of the load
win or lose we are not liable for broker default
if they purchase the freight bill ( the factoring Co.)
we get our money the same day
if the broker goes belly-up we don't get charged back
That is how we like it

 

How you will be paid should be talked about towards the end of the negotiation. In my experience, some brokers will call me and offer me a rate that is about 10-20% less than others and say "we pay COD." When I tell them I am cool with waiting 30 days for my money and that their rate is below others, usually they quickly cough up more. You can generally get better rates if you can (professionally) act as if you don't give a rats behind if they give you the load or not or if you wait another day or not. This is more easily done when you are home and looking for a load out. Don't want to pay me fairly? Then I will just chill. I am not asking for the gouge-you rates either, just a fair market price is what I am after.

 

You have a co. that does all that for 5%? What percentage of the bill does he buy? All of it? 80%? Can you PM me his name and number?

 

You're looking at this wrong Bill. With just about all loads posted by several brokers at once the driver is the one who should shop for the the most desirable terms.
Trucks move goods not brokers, lets see a broker load up his phone with a load and take it somewhere?
Until I signed up with a factoring company recently my LONGEST terms were seven days. Most paid within cod to three days.
Giving out credit is like being a bank and trucking is hard enough. There again If I don't like the terms offered I go elsewhere, you'd be surprised how many times I've been called back to offer me what I want.

Bill want to update this after posting the above I went and checked who all had paid the factoring company I use and one
of my "new" accounts has done had their account put on hold. This was after the broker assured me how quick they'd pay. So you can think of guy's that want to get paid as "IFFY" all you want I'll wait to see who winds up broke the soonest.
A judge told me once in court if I wouldn't have let the defendant have his car back without paying we wouldn't be in court that day.

 

I've had good response to negotiating the quick pay % from 3-4%to 1.5% remember everything is negotiable!