Why Does It Take So Long To Get Paid In This Industry?

Yes, I agree. I was just saying 2 months is the absolute bare minimum.
Most people get into this business without enough money saved to make the first truck payment, more less the fuel to drive for more than a day or 2. And then they wonder why the go broke.

 

You are 100% correct. Brokers are only going to pay out what they have to to get the load moved not a penny more. It doesn’t matter what they have in the load, they are still only going to pay out what the market demands.

 

The people that are doing that most likely should not be an OO with own numbers anyways. They are more then likely the reason rates drop and cause some of the issues we see.

 

In general most companies pay their invoices 30 to 45 days, and trucking isn't really that different. You can ask for quick pay, or factor loads until you have enough working capital to wait for your pay.

 

That's why when times are good it's best to stay tight lipped about it. In fact anytime is the best time to just keep your business to yourself, especially on the money side.

 

Ok. You ignored the second part. When things were gangbusters on the spot market would you haul a load for less if the broker showed you he was losing money or would you expect the market rate at that given time? If you expect market rate when things are good then you should have to deal with market rate when things are down. Knowing the rates last year on our contract stuff you and anyone else would’ve laughed and hung up the phone if you were asked to haul it for our rate and not the rate people were getting on the spot market.

If you ran a brokerage and spent the time and money to secure contracts would you want everyone in the country to know what the loads paid? Or would you not want that info out there for the general trucking population to see for fear of being undercut and losing the contract?

This is just a tired argument that only comes up when people think they deserve more money. Didn’t hear much about broker transparency when anyone could wake up in the morning and get $4 a mile.

 

That's not true at all.

Most commercial Enterprises are all 30 60 90 day pay.

I tell you what. Run a construction company where you're making payments on 10 trucks and 15 pieces of equipment and you're paying the men and workman's comp and you're paying for all the material and insurance and fuel then you wait 30 60 90 days to get paid.

Like I said that's very standard in Commercial Business

 

Heck. Even something as simple as my brother's plumbing business is NET 30 for business customers.

 

Happens to some company drivers as well. The last trucking company I worked for. Held back two weeks pay. Then there was a delay between my completion of orientation until I got my first load. My first load was across the country and delivered one day after their week ended for the cut off for pay. I went six weeks until I saw Penny out of the company. I was mad as hell. They owed me almost $8000 in pay before the checks started. I voiced my opinion that was not a good way to impress a new driver. Got behind on my bills for literally the first time ever in my life as a result. I was not happy.

 

Another way to look at is, the shipper/receiver/buyer may have overpaid, if they so feel.. If you complain of brokers.. don’t use them. Said both to driver or one contracting out to a broker.