Payment question, how are you compensated? Check, Direct Deposit, etc?

Brokers ACH (direct deposit)
Private moves, personal owned vehicles CASH ONLY
Smaller dealers check on delivery, after a few successful deliveries I may go to net 15 days
Larger dealerships, check net 15 or 30 depending on their terms

 

Agree with what he says. However, I have gone to putting due upon receipt on all invoices expecting it to be ignored by dealers. To my surprise all have complied without a fuss. We used to do net 30 but decided to stop financing other people's business.

 

Payment terms is a two way street. Nothing says we have to accept the terms of the customer, larger brokers and dealers like to think they call the shots. Now, some will refuse to load you if you don't accept their terms, but most can be flexible. As for giving a percentage of you invoice for quick pay, I never did like that concept and if I plan on doing that, or am working with a broker that will automatically discount my invoice a set amount for early or on-time payment I always increase my rates enough to cover the loss. Yes, you have to watch for that as some of the mega brokers will discount for paying you on-time!

Factoring, or quick pay can be a useful tool in a pinch but I would not run my business using it long term. Cash flow management, operating reserve and workflow forecasting are important concepts to master for long term success.

 

One of the best legal reference books specific to trucking, which covers contracts in depth is "Rules of the Road, A Practical Guide to Legal Issues in Truck Transportation", Henry E. Seaton, Esq.

I met the author, he's an older attorney and seems to have spent a lifetime researching the book.

 

I will have to find a copy of that book, sounds interesting. Thanks for the post.