When a broker is past due on payment...

You need to stay on top of your recievables start calling at 30 days as well as send out monthly statements and start adding interest on overdue accounts.

My invoices state NET 30 and 2% per month interest on overdue / unpaid accounts

 

That is a recipe for disaster. Are you checking the credit history of these jokers ? You need to get on the phone early tomorrow, and get some answers. I will only haul one load for a new ( to me ) broker until I see how he pays, and I always check their history.No way let one get into me for more than a few loads, until I am sure they are legit. What is on your confirmation ? Hold their feet to the fire, as best you can. But really, not a lot you can do, just be sure who you do business with.

 

I call the brokers a week before the money is due. Just to let them know I am watching. All brokers are different on their pay cycle. The 30 day starts when the load is delivered, when they receive confirmation of delivery, when they receive original paperwork. All different. What is in the rate confirmation is the contract for payment. When the broker is a day late (my calculation) I contact their broker bond company and ask how to file a lien on the bond for non payment. This usually gets me paid promptly. If it upsets the broker so what. I would rather be paid than not. If they don't pay, continue to file the lien on the bond. It doesn't cost you anything but a stamp. Don't let the broker talk you out of it. The longer you wait most likely is the less you will see in full payment.

 

If you have to, file a copy of the Bill of Laden for the load that was delivered with the Company that provided the Surety Bond for the freight broker you did business with.

The company that insured the sorry ### freight broker will pay you once they get all the details and an explanation from you. Then the company will go after the freight broker for their money.

Good luck

 

How does this tactic work for your repeat business?

 

gokiddo, moot point. Why would you want to haul for late payers anyway?

I like the idea of calling them before the 30 day is up. They like to call you everyday until you deliver. Give them the same medicine.

 

Usually call them n threaten to 3rd party bill shipper....Is section 7 signed on the Bill of ladings??? If it isn't you can go back to the shipper for money.... I have called them before n told them I needed to be paid for load.... This will get things straightened out most of the time... Filing on bond gives broker 90 days to pay... Had a Reefer load brokered thru a company called Royal Express out of Fresno.... It was actually a Knight Refridgerated load out of Americold.... Got the run around being transferred back n forth between Omar Singh.. All 15 of them....I told them I am calling Americold N knight n billing them cause your not payin... Money was in a Fedex Overnight same day

 

I would give my advice but I would get banned.