Rising Broker Delinquencies

After careful thought I squeak out this idea.

If the banks wont move the money, brokers don't get paid by shippers and recievers who are trying to themselves hold onto cash as thier credit lines burned out... it gets to be a form of debt based on time.

Or more simply, I feel that everyone who owes money to someone from Driver all the way up to Shipper and recievers are kicking the can to avoid judgement day of physically handing over cash they either do not have or are loath to pay out by using Time itself as a defense.

At some point that's going to stop. 60 days becomes 90 days becomes 120. Then either a depression or total failure of our Financial System. IF that should happen? Bank closures? I don't want to think about that.

 

At what point do you decide to file on their bond?

 

With present economic conditions I'd say 31 day or less.

 

You are not gonna have any brokers to work with besides Tql then

 

Don't lie to us...Especially me, We weren't born last night.

You think I'm that stupid to believe if that carrier DID NOT agree to your 33% gouge..You would have paid more? Get outta town with your sentimacy.

You would have just sat back and waited until you could get THAT margin.....

Don't play stupid with me........... You think you hold the purse strings, But you don't, Not with us smart carriers anyway..

Keep doing what your doing..The Volvos will cost you a few customers..If I don't find out first who you did this to...That Customer would gladly like to know how you maliciously arrange THEIR funds for transportation..

 

The terms in most agreements is 30 days. Since I factor 99% I don't look at my accounts as often now.
But my terms were what ever I wanted them to be before factoring I normally only give them 7 days max to pay.
You'd be surprised at the amount that would agree to paying me quick. There again I don't have a problem calling a shipper either. Of recent there is so many brokers cutting each others throats my better brokers seldom post anymore.

 

#sayswho

 

exactly our point he may have seemed happy but only cause you never told him what you was making or what the load went for. Im sure had you mention those details he would feel differently about it. all you are doing is answering phones and responding to emails and going home to your families at night. We are on the road away from our families using our equipment paying for fuel and maintenance working erratic schedules losing sleep working 16 to 20 hour days. for what? so you can come along and gouge profit which should me hours we have all the over head and you guys come along and keep us from ever being more then just a 1 truck operator. there is no room for our companies to grow mean while brokers are building lavish 5 story buildings and can have 200 employees while we are still sifting there bad paying loads.

 

38 days to pay has been forever, the number that factoring companies say is average. So when they quote you a %, based on 30 days, know they are thinking it is gonna cost you more because it is gonna take longer on average to pay.

If a recourse agreement charges back at 61 days, everyone from the factoring broker to the factor them self hope it takes exactly 60 days to pay, so they don't have to recourse it and you get charged for 2 months instead of 1. Non-recourse, if you get the fee % low enough can be valuable, but overall factoring deals are killing carriers.

Most factors today will help with finance and insurance and things that will keep you growing and keep their fees expanding, but I have only gotten phone calls regarding 1 specific factor, that if you even inquire about their services, they send Notice of Assignments to the 20 largest brokers in the country, without having your signature. Be diligent and do your homework for yourself on Factors and Factoring. Don't take anyone's word as gospel when it comes to factoring. Who wants to tell everyone "I have a factor but you don't want to use them, they are screwing me over and I am stuck for 2 more years"

 

Carriers may be able to reduce their factor fees by using a Broker that has a Factor service in place. For example, our Shippers are credit verified by our Factor service. Our Factor service handles direct payment to the carrier in 21 days or quick pay in 5 days to avoid the risk of any unpaid Carrier claim in their book of business. We (Broker) are still responsible for the invoice if it goes unpaid from the Shipper but the Carrier has been paid long ago by our Factor service. The Carriers that book loads with us do not have to risk an unpaid invoice and there is already one Factor service on the Shippers invoice, no reason to pay redundant fees.