Receiving broker payment

I thought it was a friendly deal with my banker when I set it up, but after doing more research it's actually called "Lockbox Service" and is frequently offered by commercial banks for Business to Business payments. You just make the arrangements with the bank. They give you a secure address (A PO box in my case) you put as your billing address on all your invoices and they deposit all incoming checks to the account you instruct them to deposit into. Some brokers will just automatically send the checks to the address you have listed with the FMCSA regardless of what you put on the invoice in which case you need to call them and straighten them out to make sure it doesn't happen again. I've only had one broker (Trinity Logistics) who refused to send checks to an address that was not the one registered to my authority. In their case I just set up ACH transfers using my previously listed two step system.

I guess my deal is somewhat of a friendly deal with my banker because they don't charge me for it. I finance all my trucks and trailers through them and they never turn me down or give me unreasonable rates/terms.

 

I’m not reading every other response because I don’t care what everyone else said. You send your invoice with signed BOLs to the broker, then they send you a paper check 30 days later. Some brokers actually live in the real world and send your check within the first week. Other brokers who are the scourge of the earth send them a month later.

Don’t ever take a quick pay at a percentage loss. That’s just a brokers way of ####ing you a second time (their first was when they took your direct customer). If a broker takes more than 40 days then they aren’t worth it. This whole net 30 crap has ruined the world. If I told the truck stops I’d pay them next month for the fuel I bought today at zero interest how well do you think that would go?

 

I still remember when he was a happy,hopeful wet behind the ears aspiring O/O. This is what 2 years in this business will do to you. Lol

 

I put DUE UPON RECEIPT on all invoices. You'd be surprised how many just pay right away when you don't offer to finance their payables.

 

Many carriers wouldn't mind net 30- net 45 payables IF, IF these 3pl's treated carriers AS A BUSINESS.as opposed to trying to schmmoze many of them With strategical fasttalk and straight up lying through their teeth- specially the smaller- newer guys.

I Learned many moons ago how they get down,(Most of them)....I Steer clear of them unless I need a return haul back in....

Its too easy to figure them out- II Feel bad for the OP that said something like "They pay $30 per hour after 5"
Who the Heck would believe that nonsense?

Folks,If you can....Use them sparingly- Develoip your own relationships- Even If you play the Spot Market- Its just not worth it...

 

Actually, anybody you give your banking numbers to for direct deposit cannot legally pull money out of your account without prior authorization from the account owner. Doing so would be wire fraud, and is a federal offense. Now if you sign a broker contract without reading it first, and somewhere in the fine print they get that authorization, that's another matter entirely.

 

Plus, to add, while they can reverse the ACH deposit within 5 days, checks have a 90 day window to be canceled.
All in all checks are the more riskier prospect.
And if one is worried about wire fraud, simply open an empty account and move the money once it's deposited.