How long does it take a broker to pay

Credit checks usually will have a days to pay history, along with a score. The big three load boards have credit check features available. Additionally, factoring companies use a separate system. Reason being that many brokers will delay payments to factoring companies greater than they would a regular account, knowing of the financing and taking advantage of the factor. Carriers using a factoring company usually have a credit check feature as part of their services, using that database of course. Usually a contingency on a yes/no decision from the factoring company to fund a particular customer.

 

Which specific broker would you be talking about?

Most pay 30 days from the invoice (either fax or email). Some pay 30 days from original documents mailed to them. Others are 28 days, 14 days, some are 7 days, some are COD with no fee attached. Some are 45, 60, 90 days. Some will try to never pay. Crucifixion for them.

As for methods of payment, I always request a check be mailed to me. Others offer direct money wired into your bank account, others will load money onto a fuel card for you, some will offer comdata codes for cashable cheques. I don't like to pay any extra fees for quick pay or comcheck, and I don't like the idea of anyone being wired into my bank account. I will wait for all of my money.

 

I have a core group of brokers I get my work from. If I am going to haul for a new broker, the only credit checking I do is from my load board website. It gives my Equifax and D&B credit reports. I won't extend very much credit to a new broker until I see how they pay, and if they are decent, they become one of the chosen few who I allow to load my truck. Only one time a load went sideways with a broker who decided not to contact me after I had delivered a product with clean signed bills then the customer decided the product wasn't good some time later. I had to fight to get my money out of them, and I did in the end. If they ever want me to haul for them again, they get what I refer to as A-hole price, and credit extended is reduced WAY back. That is if none of my chosen few have loads to my interest at the time.

 

It should say in the contract or also credit checks which come as a feature of load boards. Also there are a few "best broker" books (or online) that would show brokers that pay in under 30 days without issues as well. Compunet - First Advantage now? - also NASTC are two services that carry a list of reputable brokers (as far as pay goes that is). links below on requirements

https://www.compunetcredit.com/CompuNetWebSite/GoldBook.aspx

http://www.nastc.com/v3/HowDoI/HowToBecomeABestBroker.php

 

I'll add that most brokers will pay as they promise, especially larger ones. However it's on you to do some due diligence before taking their word for it. There will also be some variance on how they count days. Some might go off the invoice date. Others start counting when they have receipt of your paper. And so on.

Another note about factoring company credit checks, and not sure if it is a consideration on load board or commercial credit bureau reports. That is, perhaps a broker has a great days to pay number and a high score. But at the same time they could be the ones that will whip a claim on a load every chance they get. Being just difficult to collect from, albeit due to "legitimate"reasons on their part. For example, holding pay because the signature on the POD is on the wrong line. Or a blank page is missing from the bills. Or a long list of other weak reasons not to pay promptly.

In those cases, I know for a fact that a factoring company will not fund them or at least only as full recourse, even with a stellar commercial credit rating and low days to pay.

 

The invoice total.

 

Yea pay on the invoice total and if they're not flat rate there's an extra .25% they take off for being paid in 31 days instead of 30. And then people wonder why I say I get off on the pain.