OK, I am fairly new to having own authority and would like some insight from those of you who handle your billing.

Why is freight hauling different than any other business? Like if I goto the autoparts store, my account is set so that I pay in 30 days, if i carry a balance, then I get charged interest. The supplier sets the terms for me.

But why do these companies that we haul for(not all but some) pay you when they WANT to pay you? We ask for payment in 30 days. Yet some of our customers decided they dont want to pay in 30 days, you charge them interest, they dont pay the interest, you get in a fight and loose a customer...(sample illustration, didnt happen Yet)

Dont get me wrong, if I know company A pays in 45 days, and thier money is always good in 45 days, thats different. But for a broker/company to rush rush rush, we need the shipment out now, they sure dont follow through with rush rush rush payment.

Almost a month ago we took a load from a Landstar broker, everything was kosher when we left. Then a few days back, was checking into another load from them. The guy said we were not setup with Landstar, after a lengthly conversation with both Landstar main office and the agent we had the original load from, everything was "cleared" and they said we should get payment for that original load in 45 days. At this point 45 days would be a total of roughly 75 days, since it had already been 30 days. We argued and said that it was not our fault they couldnt get their stuff straight, but somehow I know, it will be 45 days. And that was the last load from them.

SO are there any options to regain some sort of payment schedule from our customers? We are not broke by any means, but how can Company A set a payment schedule from thier customer who bought the product we are transporting, and then turn around and set the payment schedule to when they will pay us, regardless of the policy we have in place?

 

I have never had a problem getting paid from Landstar. I usually do a quick-pay with them and discount the bill about 1 1/2%. It is part of the agreement I signed with them. I would think that you would know whether you were set up with them or not. Most of these brokers dictate how they pay. It is best to lay out your terms in advance of hauling any loads from them. A good motivator would be to offer a cash discount for payment in say 7 or 10 days. Your bill would state 2% 10, net 30 days, if those are the terms you agreed to in the beginning. You should have in the agreement where you can charge interest on any invoice unless payment is received by the due date. If I do business with a shipper or broker and they don't pay as agreed, then I don't do business with them. I am in business just as they are and I need my money in a timely manner. When these people fail to keep their part of the agreement, then I see no need to continue with the relationship. You need to decide whether this is something with which you want to continue to deal or just stop doing business with them. I have found that most will keep their agreement. You could remind them that unless they keep their agreement with you that you have the right to solicit their customer directly. If they fail to keep their part of the agreement, in other words, to pay you as agreed, then the agreement is basically void. They are the ones who breached the agreement, not you. In that case, the shipper is fair game. You can also file a complaint about your experience with any broker with OOIDA and some load boards also have a means to file a complaint about a broker. I have better things to do than run brokers down for payment.

 

We've been using APEX Factoring for about a year now. Yes, they take their little piece, but we have our money IN OUR ACCOUNT in 2 or 3 days after we deliver. Can't beat that.

 

Junkman, when you setup with a shipper or broker, you should verify that they got all of your paperwork especially the W-9. With brokers I usually call back the day we booked the load and just ask if they received my entire packet. I know they did beacuase most wont release the dispatch without it. I do the same with shippers except I ask for accts payable and verify that they have the packet and can agree to my payment terms. I have 7 day terms on my invoices, even though most will pay in 30, others when they feel like it. Also, be sure that your paperwork is immaculate, if you have someone else doing your billing, you should double check their work before you mail the invoice, bols, confirmation. Always make a copy before you send it. If possible, stay away from Factoring (there are some good companies out there). If you have the means, factor to yourself and put the fees into a separate account or get a 30 day line of credit from your bank. I hope this helps and it's too bad that we have to chase freight then chase our money.

 

See thats the problem I personally had checked and double checked with the landstar agent who offered the load, and they had our authority, ins certificate and w9 fax in hand, there was no problems. Our end of the paperwork was handled, etc. Through the fiasco, we called back that same orginal agent and she said she was 100% sure that everything was filed correctly, or else the load would have never been released. Who knows.

I will admit, i dont think the lady doing billing is setting up the terms with the customers, like LOAD IT said. I think its more of a "when do you pay". Ill see if I can change that asap.

Hey, Thanks for the help.

 

It isn't the Landstar agent who handles the billing and payments. All the agent does is send the confirmation order. I think you have been talking to the wrong person. The agent with whom you booked the load usually doesn't get involved once the load is delivered unless there is a problem with the bills. If you want to be paid faster and make sure that they receive your bills you can use Transflow. I believe it costs $1.75 for each load and they will have all the paperwork within minutes. The faster they receive the paperwork the sooner you can get paid. If you use their Savings-Plus they will issue you a Comdata card and transfer the funds to the card within about 48 hours from when they receive the bills.

And by the way, if you do business with a broker, they need to adhere to their payment schedule with you, regardless of whether they have been paid. It is not your problem if their customer has failed to pay them. Your agreement is with the broker.

 

I had this happen with a broker too (not Landstar). I faxed in all the paperwork. On the W9 I wrote in big letters "NON RESIDENT ALIENS NOT REQUIRED TO COMPLETE W9". I followed up and the broker said yep we're cleared to go pick up the load (all they care about is proof on insurance). So we did.

The next day I faxed the invoice etc and they confirmed reciept.

One week later I call to check on the payment process and was told I cannot be paid until I complete the proper tax form.

They will let you pull as many loads as you want but they can delay payment for anything.