Hot Bread: What’s up with this crooked 30 day wait to receive our money?

Companies doing that kind of volume use EDI transactions, not paper invoices and statements. It all happens automatically by computer. Humans only get involved when there is a problem.

 

i worked for a major american manufacturer with a reputation for 90-120 days to pay. The line of vendors wanting in was a mile long.

 

In food service, grocery stores said they didn’t even want to hear from you about getting paid till after 120 days.

Strange though beer, wine and liquor is still an only cash deal by law in Arizona. I worked for a beer distributor and always paid with cash or check upon delivery. Majors had a cash deposit through the corporate office.

 

Because some don't understand BOL terms. They think pre-paid means the broker(carrier) was paid up front. Or they think collect means broker(carrier) are paid when delivered.

 

As O/O you are no longer really an employee. If you need that steady paycheck once a week or every other week you're going to be better off a company driver. I don't know why anybody would give up 3 to 5% of the check to get their money sooner, I'd rather let them hold on to it an extra month and they can pay me that 3 to 5% extra.

 

You need $100k-$500k to wait 30 days for your money?

 

But O/O are a business to business relationship.
No different than the computer store I ran. Our inventory was ordered and paid on a net30 or net60 (depending on vendor) and we extended net 30 to net120 to our business customers depending on how good of a customer they were.

You need to start treating this like a business and not like you are an employee.

 

Your still a businessman. And if you wish to grow your company and be successful at it you need to think like one. Would you turn down direct freight at a great rate going into an area that was easy to get good paying back hauls because the shipper wanted net 90 terms? If you can’t float your business for 30-90 days your going to be out of business before to long.

You need a cash reserve. And if possible a line of credit at a good rate. This is business 101 stuff that should be all spelled out in your business plan. You do have a business plan right?

Run your truck like it’s a business because it is. If you don’t all you did was buy yourself a job and a better than average chance at financial ruin.

 

COD is good, Everybody wants paid, had a delivery for a Customer, that was COD , and it might take 2 checks to pay for the load,