Billing a Broker

From my experience again, An invoice may not be required but is will make your company look alot more proffesional. If you would like PM me and I will send you a copy of the invoice I made and if nothing else it can be a template for you to make your own. The signed BOL is also required to be payed and most brokers will pay off of fax/email I have had one load so far that only paid via origional.

As for payment, some will do direct deposit (my preffered method) but from my experiences most (even some of the bigger ones) do not offer this service. Almost All of them will offer quick pay so we have not needed the services of a factoring company. However we have the luxory of a trusted person at that will take our paper checks from the mailbox to the bank. Quick pay fees are around 2-4 percent depending on broker and almost all will pay by T-Check if you really need the money now. In the future I hope to receive the majority of my payments by ACH (direct deposit) but untill then the other options will work.

On a side note whatever load board you choose ABSOLUTELY must have credit ratings. We use mymembersedge through OOIDA and have not been screwed yet (knock on wood) but we do not haul for anyone with a less than 85 credit score by thier ratings. Also look at past trends on credit ratings if ratings or average days to pay are on a sudden downward trend over the last couple of months try to avoid them as they could be in hot water.

 

There is a lot of information in these threads:

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/146942-how-to-become-an-owner-operator.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/147854-what-would-experienced-o-o-buy.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/125507-what-estimated-operating-costs-o-o.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/148340-keeping-track-o-o-operating-costs.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/134211-no-experience-but-getting-authority.html

Then even more information in all the docked threads in the "Ask An Owner Operator" section. These are not specifically addressed but the subject is discussed many times.

From my research, I'd say brokers take 10 - 30 days to pay. This is the reason for everyone saying you need a lot of capital to start.

Some brokers have quick pay options that pay within 72 hours. You pay a percentage of revenue for this option. Do a site search for "quick pay" and you'll find some information.

The other option is to factor for a higher percentage. This is frowned upon by many. It should be carefully researched. Do a site search for "factor, factors and factoring" and you'll find some information.

 

This thread covers the topic of how to get paid pretty well.

 

Balance a low credit score with time in business. If they are new but don't offer QP, may want to stay away from higher dollar loads. But if they have the QP option then you are dealing with a company that has some capital and the risk is less.

 

Each broker can be a little different in how they want to be billed in order to pay the carrier. Some will allow you to fax or use Transflow to get paid. Others want the original BOL before releasing funds. There are a few who will allow you to upload your bills into their in-house computer system. I usually include an invoice no matter how I bill a broker. One of the first questions that I have when talking to a new broker is how and when I can expect payment and what is required to facilitate payment. I ALWAYS check credit. If a broker has not been in business for at least 1-2 years then I will usually not do business with them. It takes at least a year for them to have any sort of track record with payments. On rare occasions I will do a prepay or COD if I cannot get sufficient information concerning their credit. Most of the time, I won't haul for anyone who is too new.