When do brokers pay?

If you do opt for going with a factor be sure to READ the fine print. A lot of them want your property as collateral. I do believe I would use quick pay before I went with a factoring company. And seeing as though most of the brokers these days offer quick pay you won't have a problem. Why factor at that point.Then there are no arguements over gross monthly revenues and usually the quick pay is cheaper than factoring. Not too mention you wouldn't have to worry about recourse and non recourse as you are getting the money from the broker. If you use the load board such as Transcore and you have common sense you don't need any of that crap. It shows the brokers credit score right on there. I have yet to have a problem getting paid. Some are a bit tardy and usually with a friendly phone call the check gets sent right away. I mean if someone sees a credit score of 58 and they still load for the broker than truly who is the idiot?

 

It pays to read the fine print of ANYTHING that you sign. I would not pledge personal of corporate assets to a factor that I was sending business. I just fired D & S Factors due to them wanting me to sign a new addendum to the contract that I had with them. I have done business with them for many years. No more. When I get time I may find another factor to replace D & S. It can help if you have a company or broker that has a lot of good paying freight but doesn't offer quick pay. But, most brokers do offer some sort of quick pay. I would also prefer quick pay rather than having to deal with a factor.

 

Oh no. Don't mistake me. They are all crap. Just remember their job is to get as much out of you for the load as possible. Wait till you figure out how much of this stuff is double brokered. You'll see the same load on the board loading and delivering to the same place. The amounts hauling for the broker's whos account it is will be higher, then call the other broker and you'll see 100-200 dollar lower difference. It's unbelievable what these people try.

 

There are some brokers that I have had a good relationship for a number of years. I have some who won't call me unless they get in a bind and have a very good rate. On the other side, there are a few that I won't haul if they had freight for $10/mile. For the most part, I have not had much of a problem with brokers. Perhaps that is because I ask a lot of questions about a load, run my own miles rather then relying on them, and set a fairly high bar on what I will haul. I won't commit on a load until I have enough information to make an informed decision. A good broker can help you grow your business and assist you finding the loads you want and at the rate you need. You can always find your own shippers. You may or may not get better rates. You may or may not get paid as quickly as if you deal with a broker.

 

There is a lot of double brokering. If a load is cheap there is a good chance that it has been double or even triple brokered. There are a lot of 3PL's. These are 3rd party logistics companies. They are really brokers. Many deal with other brokers. When a broker gets a load from a 3PL they often say that the load isn't double brokered since the 3PL doesn't call themselves a broker. Whatever they call themselves, it is still double brokering. Most brokers have a clause about double brokering any load that you receive from them. Many are themselves double brokering loads. I don't know of any laws which prohibit double brokering. DOD loads are not supposed to be double brokered, but it happens every day. The DOD has contracted with a major broker that is part of Conway. They will broker to other brokers as well as carriers. Some of the brokers that they contract with, will in turn broker those loads to carriers, as well. It is part of most freight contracts, but it still happens. There is a lot of good paying freight. By the time it passes through 2 or 3 brokers it is no longer paying well.

 

Yep just did a 3PL. Rate was ok. And there has been a time or two when I hauled a double brokered load and got a better rate than if I was hauling direct. Timing is key.

 

I recall a load that I hauled for a broker. When I picked it up I found that Schneider had the account. I later was contacted by Schneider to haul the same load for less than I got from a different broker. I spoke with the original broker and questioned them about the load and Schneider. I was told that they were "co-brokering" loads with Schneider. It is a matter of semantics. Double brokering is double brokering. I went back to the original broker and hauled a few more loads out of that facility. I find it interesting that I could get a better rate from the "co-broker." This is not the only time that it has happened in a similar way. It usually doesn't work that way. In most cases, the more hands in the pie the less the truck receives.