Collecting Payment from Broker

Discussion in 'Ask An Owner Operator' started by RandomChick, Aug 28, 2013.

  1. RandomChick

    RandomChick Light Load Member

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    So, I have a few questions about the way you usually invoice a broker/shipper. Do you just send them an invoice with the billing info broken down? How do you send it and how do they pay you? Do they pay by check, direct deposit, T check? In other words, what is the step by step process of sending a broker or shipper an invoice? Any information about how this is done would be very helpful.

    Disclaimer: I am writing my thesis in transportation, which is why I am asking all the questions. I know these are really basic, but I'm hoping they'll be useful to someone in the future?
     
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  3. G/MAN

    G/MAN Road Train Member

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    It really depends on the broker or shipper. None will pay until you present them proof of delivery and an invoice. You should initially have a rate confirmation with the terms and rate to be paid. You need to send them your rate confirmation, itemized invoice, signed bill of laden and any other paperwork related to the load. You can mail or overnight your paperwork if you wish. Some have Transflow or Trippak. I usually fax or email most of those with whom I do business unless they require original paperwork. Some I can upload my paperwork directly into their system. How you are paid depends on your contract with whomever you received the load. Most pay in 30 days from the date they receive your paperwork. They will then send you a paper check unless other arrangement have been made. Some will do a direct deposit, others may issue a comcheck or other guaranteed check. If you factor your receivables you will send all paperwork to them and they in turn will invoice and collect from the broker or shipper.
     
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  4. spyder7723

    spyder7723 Road Train Member

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    not to knock on you, but do you realize that pretty much every question you have asked can be applied to nearly every business in every industry? none of them are specific to trucking, or atleast not the ones I've seen from ya.
     
  5. RandomChick

    RandomChick Light Load Member

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    Hehe, I guess that's true, isn't it? I suppose the answers are specific though. I've gotta keep my eye on you ;)
     
  6. RandomChick

    RandomChick Light Load Member

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    Do you have a preference to be paid a certain way? Is it common to see a broker that requires originals?
     
  7. mp4694330

    mp4694330 Road Train Member

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    Fill out carrier agreement?

    So, earlier today, I found a decent (finally!) paying load off a load board and squeezed the broker for more. I thought great, until I saw the carrier agreement the broker asked me to fill out. It was the longest form I've ever been asked to fill out. Is that normal? Usually, I just send over my documents to a broker and they do the rest. What is your experience like?

    Load Board Rant

    I've been using load boards a lot more frequently lately (my dispatch is ill, so I picked up the slack) and I just hate the way they work. Everything from brokers trying to (sometimes) scam me to waiting a long time for documents to be sent while I could be out driving. I can't tell if load boards just suck or if I'm using them wrong. Does anyone else feel the same way?

    How do I stop running empty?

    What are your tips to not run empty? I am probably running empty a quarter of the time and, like everyone, want to get the most bang for my buck. What are your tips to end running empty? Any solutions you've seen/thought of/heard that you can share?

    AND THIS

    Sincere question: why are you brokers around?

    Okay, before you get angry, I want to make it known that I'm not a driver and I'm not a broker and I'm not a shipper. Just someone studying transportation, so, yes, I don't know what I'm talking about. HELP ME. I don't understand why brokers are around. Why don't shippers just use load boards like brokers do. This will drive down their costs and make things go faster. Do shippers dealing directly with carriers need to meet certain legal requirements? Can't they just check the FMCSA for carriers with good reputations? I'm sure it's not as simple as that, but I just dont understand, what are the reasons shippers use brokers if they can easily do it themselves by using load boards?




    Just friendly question, can You explain Yourself a little?



     
  8. Lucar

    Lucar Road Train Member

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    You either use a factoring company for a % or you can wait to get your money paid up to 90 days later
     
  9. dannythetrucker

    dannythetrucker Road Train Member

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    The old fashioned way (I believe you could still consider industry standard) would be to send them your invoice, the rate confirmation contract for the load, and the Bill of Lading signed by the reciever (also called the proof of deliver or POD), as well as any other shipping documents. Then they are to mail you a check within 30 days.

    Of course now we use all sorts of methods, email, fax, transflo, etc... to send the documents. And brokers use all sorts of methods, ACH deposit, various pay cards, comcheck, etc... to pay us. As well as offering us various terms to be paid quicker for a fee.

    But there are still some who want you to mail original documents and send you a paper check by mail.
     
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  10. RandomChick

    RandomChick Light Load Member

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    Sure, I'm writing a thesis at San Francisco State on the inefficineicies in freight transportation, with a focus on freight trucking. I've been using this forum to answer some of my questions. I can see that it's probably a little annoying, but some of you have been very helpful and I appreciate it. To those that wish I went away, I'm sorry :( BUT most have been really sweet
     
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  11. Casual Trucker

    Casual Trucker Medium Load Member

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    What you are asking here on this public forum is not a good idea while your intentions appears to be harmless & for research work it is important to understand the liabilities associated with the correct answers to your questions could cause serious financial harm to the broker and the independent trucker.I could go much further and be more explicit and warn you about the problems but for now I chose to stop and leave this subject for now.The more I try to explain why the more information is revealed and that is fine and good but if this info falls in the wrong hands Like I said It could mean trouble for some.
    Hint. Any one out there can have access to this forum and yes they can be tracked but some can't be caught ....10/10 Hello Come in
     
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