How does the shipper pay brokers.

I think your in way over your head.Did you just wake up this morning a decide you want to be a broker

 

Most shippers pay 45-60 days out, some as far as 90 days out. As a broker you will need enough cash on hand to pay the carriers in the terms you agree to, usually 15-30 days. This is something most owner operators don't understand about how a brokerage works when they complain about the percentage of the freight you keep for "just giving me some work".

I am in carhaul, my direct shippers pay me 45-60 days after proof of delivery, I pay my contractors no later than 7 days, some within 24 hours of delivery so I am floating 2-3 months of business at any time.

 

My "guess" is that the shipper has 30 day's to pay the broker after broker invoices shipper. I would imagine that the shipper to broker payment terms would be laid out in the shipper/broker contract.

No offense meant, but I "know" that if I was to become a broker, I would be rather well informed on the ins and outs of the game before I started investing any money into playing the game. I also know that I would have more than enough cash on hand to carry myself for at minimum of 30 days.

It seems obvious to me that you are going into this without proper capital and are expecting easy money with little investment. Hoping to make a fortune off of the capital of carriers. The reality is that it is the carrier that is the one that pays for everything up front and has to wait thirty days for a broker on the verge of broke to pay them back.

To be totally honest with you, you scare me, just the idea of you unable to pay a carrier if you don't get paid in 30 days should tell you to STOP and really consider what you are wanting to do. I might also add some carriers like quick pay, guess that won't be an option with you. I might also mention that is a good way as a broker to gain a bit of extra cash.

Hey the bright side is that you will likely only get the bottom of the barrel carriers to give you a loan and both you and that carrier can go down together. Because any carrier with a bit of "cents" won't touch you.

I'm not trying to be mean to you, but it's statements like;

that makes carriers not want to use a broker.
By the way, you've already got bad reviews.

 

Here's brian again wanting us to feel sorry for brokers and their vicious cycles...

7-10% is ,What I feel more than a generous amount for a Brokers hand....

SO WHAT, Brokers pay in 30, Big deal.....Time isn't as important as the actual alotment..I'd patiently wait 45-60 days knowing their not getting 20-40% of revenues.......(Most of my customers are 45-50 dtp)

So you have Clerical,Sales,Bookeeping,collections...............WE ALL DO,

Your in the car business..I'm in the Freight Business...........Diffferent scenarios But always the same end result

So No....Your not keeping 20% or Better cause you lead my trucks to freight...Give you 7-10%..But that's about it...

And as for your Penna insurance quotes....Why don't you give a lil overtime to your girls and have them Subregate with your agent on your heavy premiums........

 

Some shippers pay in 60 or 90 days. Lots of those brokers factor loads. Why do you think they want a signed BOL right away. Half of them don't have a pot to piss in.

 

Half way through your original post I was thinking the same thing.

 

Rarely will you get the money from one of your shippers before the money is due to the trucking company. May want to try being an agent for a broker with all this set up already including the ability to pay trucking companies if you aren't willing to float the capital needed.

One thing to keep in mind is what are you going to do when a shipper doesn't pay you, because it'll happen at some point. Your still on the hook for it to the trucking company regardless whether you get paid or not. A shippers ability or inability to pay you cannot have any bearing on your ability to pay a trucking company.

 

How does the shipper pay brokers.

Usually by check...