Collecting Payment from Broker

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

  1. G/MAN

    G/MAN Road Train Member

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    In my case, I factored so that I could turn my money much more quickly. It doesn't take that much time to invoice. I have several different formats so that all I need to do is cut out the part I don't want and then add what I want. Once you sell the receivable to the factor it is no longer your responsibility. They send out the invoice and the broker mails them the check instead of you.
     
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  3. G/MAN

    G/MAN Road Train Member

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    I usually prefer a comcheck or similar payment as long as there isn't an additional charge. Until a couple of years ago, most brokers required the original bills for payment. Many now accept the electronic copies. More and more brokers and carriers are moving toward paperless records. I always keep the originals in case something happens to the paperwork.
     
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  4. d o g

    d o g Trucker Forum STAFF Staff Member

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    The purpose of this site is to share information about the trucking business. Sometimes that means that we share it with each other, and at other times it means that we share it with people outside of the industry who are interested in what we do and how we do it.

    Anyone who isn't interested in answering questions from college students should skip over them. If you don't have the self-discipline to do that, you might try using the 'Ignore' function and let the software help you.
     
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  5. RandomChick

    RandomChick Light Load Member

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    So, I'm a little unsure. Do factoring companies pay you when you drop off the load OR when you send them the rate confirmation?

    Thanks again btw! You've been really helpful
     
  6. spyder7723

    spyder7723 Road Train Member

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    depends on the factoring company, will never be before the load Is delivered. 48 hours or so upon receipt of proof of delivery is kinda standard. and there are recourse and nonrecourse factoring. recourse means if the factoring company doesn't get paid, you owe them the money back. nonrecourse, they won't come after you over a shipper/ broker not paying them. obviously non recourse carries a higher fee.
    another thing, some factoring companies won't do business with you unless you agree to use them for all your billing, others you can pick and choice which loads to factor
     
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  7. spyder7723

    spyder7723 Road Train Member

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    oh and fyi, one eye is fine, but for two I'm charging double
     
  8. RandomChick

    RandomChick Light Load Member

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    Hahaha, what do you mean?
     
  9. G/MAN

    G/MAN Road Train Member

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    A factor will require the rate confirmation, signed bill of lading and any other paperwork related to the load. The rate confirmation has the broker's name and address, rate that the broker is paying you, shipper information, consignee information, and any other information relevant to the load. The rate confirmation may also have other conditions which may apply to the load. The bill of lading is usually supplied by the shipper and has all the information about the load, such as number of units shipped, weight, size and any other descriptive information. It also has the shipper and delivery information along with the name of the carrier or broker. Some factors use their own invoices and others may require that the carrier furnish an invoice. Some factors may advance funds on a part of the load once it has been picked up by the carrier. Most will not advance any funds until they receive proof that the load has been delivered. As long as all the paperwork is in order and legible, they should pay the carrier within 24-48 hours.
     
  10. luisrolon

    luisrolon Light Load Member

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    i have a question that kinda goes along with this. let say you pull for a company and they pay you a % how can you ensure your getting your right cut the %
     
  11. spyder7723

    spyder7723 Road Train Member

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    ask to see the original invoice. by law they are required to provide it. the only stipulation is they may black out payee info, such as phone numbers, address,etc. basically the info you could use to Terry and steal the customer from them.
    also, if they are sticklers you have to go to their office during normal business hours to view the invoice
     
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