Nonpayment Of Invoice

Not to interrupt, but in other ways of doing business, you can get someone to put a bond up (They aren't that much) so you can file against it for non-payment. Anyone in this business do that?

 

Brokers have a bond for just that.

 

I've been burned twice since starting in 2012. That was when I was new and had a lot of different brokers I was loading for. The last one was in 2014. Now I have a core list of customers I haul for and really I don't even entertain much new business anymore. I have no reason to.

 

Couldn't tell ya honestly. It's been a long time since I even have checked someone's credit. When I was new, as long as it was not ridiculously horrible credit, I would do the load. At times the loads can be slim pickings considering I have to follow cabotage rules. To run Canada you sort of have to know who has what loads as a lot never hits the boards. Can make it difficult for new operators unless the market is very strong. It isn't like USA where you have tons of major cities in all directions and a seemingly endless supply of posted loads in all directions.

 

Out of 157 of my invoices ever sent, all of them were paid in full.
Brokers with recognizable names are low risk. The DAT rating and Factor or No Factor column are good risk indicators. I am sure there is an opportunity cost of not using more obscure brokers. I would not mind using some of them but at least I would need someone who I know well to vouch for them. I would not count on that 75k bond too much, I can imagine it will be used up quickly, if they go under.

 

Broker bonds are sometimes not worth the paper they were written on.
This is a letter I just received this week when I had to file against a brokers bond.
This was a 75,000.00 bond and it’s completely gone and then some.