How to invoice broker for a load?

Discussion in 'Ask An Owner Operator' started by Crazy Alex, May 23, 2015.

  1. danwantstodrive

    danwantstodrive Light Load Member

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    I use intuit quick books. Great tool for invoicing and keeping track of all your expenses and income
     
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  3. double yellow

    double yellow Road Train Member

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    I use quicken home & business for invoicing (& generating reports to see who is past 30 days).

    And I too would invoice for the full amount. That's how I handle comcheck fees for lumpers anyway.
     
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  4. Bigray

    Bigray Road Train Member

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    I too use Intuit for invoicing and record keeping. end of year I give my Acct. a copy and he comes up W-2 & tax return.
     
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  5. 315wheelbase

    315wheelbase Heavy Load Member

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    sample invoice:
    INVOICE
    315 Wheelbase
    123 Maple Street
    Anytown, USA 55609
    Phone: 900-555-1212
    Fax: 900-555-1234
    EMAIL: 315wheelbase@myemail.com
    DATE: May 23, 2015
    RE: Load # 12345
    Transport baby buggy from Toledo, Ohio to El Paso, Texas.
    Loaded May 19, 2015
    Delivered May 23, 2015
    Freight Charges: $2,600.00
    Terms: Payment due on receipt of Proof of delivery.
    Attached: Signed BOL and Rate Confirmation
    Questions please call

    Thank you for your business,
    John Smith
    315 Wheelbase

    Don't factor the interest rate to receive your money 2-3 weeks faster will kill you.
    If you have to factor your invoices you are loosing a lot of money,
    Many times when I contracted a load from a broker I would ask to be paid after I delivered the load with no quick pay fees,,Most the time they agreed especially when they were desperate to move the load. The interest rates for factoring are criminal.
    A 5% factor fee is about 60% APR or more. Figure about 40 loads a year and $130/load factor fee equals over $5,200! That's a couple truck payments, a lot more if the loads pay more. I have met drivers that have paid over $10,000 in a year to factoring companies, It is cheaper to run on a credit card for your expenses
     
    Last edited: May 24, 2015
    Trucker1972, TallJoe, Jerry12 and 2 others Thank this.
  6. Crazy Alex

    Crazy Alex Light Load Member

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    Here n there
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    Thank you Wheelbase,that was really helpful!!!!
     
  7. Jerry12

    Jerry12 Heavy Load Member

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    Your getting some good advice; check the brokers bond expiration date. While waiting for payment, periodically followup. Ques: How long will you wait for payment before filing against the Brokers bond...?
     
  8. TallJoe

    TallJoe Road Train Member

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    The title of this thread is sufficient enough not create any more on this subject, so I took liberty to revive it with my little questions.
    I hate to think of how much hard earned money is so easily forgone on the interests paid to factoring, and quick pays. Yes, it is necessary/useful to use them when low on cash and payments are waiting, but on the permanent basis it is a bad practice, if you ask me. I'll try to switch to invoicing gradually but eventually completely.

    1. When you send BOL along with Invoice and Rate conformation. do you always include the original (even if not specified in brokers agreement) -of course you have to keep a copy for yourself then.
    2. Do you include a return envelope with you address?
    3. The loadboards have the brokers rating listed, and I pay attention to it and i does influence who I call. For instance anybody below 95 on DAT loadboard I'd rather not call, if I do I factor them. Do you think they are accurate, these ratings?
    4. How long do you wait before you make your first collection call?
    5. How long do you wait before you send Tony Soprano their way?
    6. How often you simply could not collect and filed a claim against their bond, and if so, what were you able to recover?
    I guess, I am trying to ask if there is a lot of risk and inconveniences involved in practice with invoicing as a general Accounts Receivable method?
     
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  9. gokiddogo

    gokiddogo Road Train Member

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    Ontario Canada
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    1. Most of them accept email invoice and scanned bol. Maybe 2% of the time they require the original. In that case they will let you know, so save your stamps.
    2. No. Because of reason 1.
    3. You will eventually widdle it down to a handful of people you work with. Build a system and work that system. New guy all the time sucks.
    4. Typically 45 to 60 days.
    5. I have only had to send Bill? At Baxter and Bailey after one load. I did so after more than 90 days had passed. I eventually received maybe 250 on the 1100 freight bill. Almost not worth it. Should have hired my own Tony Soprano.
    6. Never had to file on a bond.

    I would argue there is less inconvenience when you directly bill the broker. One less hand in your pocket.
     
  10. xsetra

    xsetra Road Train Member

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    I will email or call 15 days after sending invoice, just to check on progress and when they plan to pay.
    They know you are keeping track of your business.

    I will ask for their bond information via email at 35 days from sending them invoice. Usually this will get you paid soon. I file on their bond at 40 days. If they get upset and don't want to hire me again, so what.

    I don't want to work for them if they don't want to pay on time either.
    I don't send any postage or envelopes with paperwork. So many pay via ACH now.
    Good luck.
     
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