Minor problems with broker pay add up. What if I charge a late fee?

For so

 

Yes,

I have actually started doing my own version of this. I print my own criteria under their payment terms stating that "Carrier extends 30 day terms as a courtesy to our customers, however, balances not paid within 30 days of submission of invoice and bill of laden will incur a finance charge of 1% per month."

(Research indicates that more than 12% per year is not legal in most states.)

I don't know if it will hold up in court, but at least it's something.

 

Check your contract with them and see what the terms of payment are (they might have longer listed in the terms) then file against their broker bond.

 

I have started adding this to my contracts. Thanks

 

I write it on the contract in their carrier set up packet, not on each individual rate confirmation sheet. I have an app on my iphone that allows me to add text as well as my signature into contracts they send out. I look at their payment clause and right underneath it, or in a place where there is room, I type something like "Carrier extends x day terms as a service to our customers. Balances not paid within x days of submission of invoice and POD will incur a finance charge of 1% per month."

I usually use their own payment terms - so I'm not changing how long they take to pay - but note that if they go over the number of days that they commit to, I will charge interest. So if they say they pay 35 days from the date they receive the invoice and POD, I say that we offer 35 day terms as a service to them, and will charge interest if they go beyond that.

I don't have as much of a problem with the carriers to who say that they take 40 days to pay - I can plan for that or not accept the load. It's the ones who say they pay in 30 days, then take 45 days to even cut the check that have caused me the biggest problems.

I have also made notes on the contracts in regards to their back solicitation clauses. Two of them have written into the contract that "By accepting the load, carrier acknowledges that this is our customer....and agrees not to accept any other loads from that customer unless it is through (our company.)" They also state that they are entitled to a percentage (the company I filled the form out for today said 75% - the highest I've ever seen) of the gross revenue we make by hauling loads for said customer through anyone but them.

That doesn't work for us, because many companies use multiple brokerages to move their freight, and technically, that wording leaves them the opportunity to sue us if we haul for their customer even through another broker. So if I can, I make a note on those clauses as well.

I doubt they ever actually read the contracts when they get them back - but if they don't question it, It goes in my file as the official copy of our contract.

One broker did see it, and said that I hadn't needed to write that in there. It's just a standard clause that they don't really follow up on, and they know that other brokers give out those loads. I still wanted it in writing, just in case.

I have written addendums on some rate confirmation sheets too, but I usually try to put it into the actual contract. We also have our terms of service posted on our website.

 

Many of the rate sheets we get, as well as the contracts, are already signed by them when I get them. Even if they aren't, and they don't sign the form and send it back, the only copy they have of my signature agreeing to their terms has my notes on it. So either we don't have an agreement at all, or we have one with my terms included...I have, however, never challenged this in court.