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VTL TRANSPORT (Ventureline Transport) Double Broker

Discussion in 'Double Broker List' started by boss, Aug 18, 2016.

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  1. htcollections

    htcollections Active Member

    I have seen carriers try to deduct as much as 10 percent I suppose as long as it was agreed to prior, is understanding. !0 is a high number though. Factoring companies charge much less. 5 % percent is pretty standard. CH ROBINSON is one of the best. They advance drivers 50 percent as soon as they pick up the land, then pay the rest 24 hours after they receive the invoice and POD. 3 percent is their fee. Pretty good company, at least payment wise. I do hear from t\some carriers that they do not like the rates, but at least the rate is agreed to prior.
     
  2. KeyFactor

    KeyFactor Active Member

    I used to work at a company that offered a 2% early payment discount if the invoice were paid within 10 days. Problem was, many customers would short-pay us - take the discount and pay late. Not cool. It seems to me that there should be no problem for a broker or factor to earn/take a discount for ensuring early payment, as long as all parties agreed to this. The problem arises when one party unlaterally decides to take a discount that was unearned or not agreed upon.

    The NOA should ensure the carrier doesn't get paid twice because the broker should NEVER pay the carrier directly (quickly or in the normal course) after having signed it - unless of course they receive a termination letter.
     
    Last edited: Oct 7, 2016
  3. loaders

    loaders Site Supporter

    I don't think anyone is complaining about a carrier, or anyone for that matter, who pay their invoices promptly.From my reading of the threads on this post, the complaints seem to be about a carrier who reduces the amount of the invoice without notification. Yes, they pay quickly with a discount, but was that the original agreement? If it was, all is good. If it wasn't, not so good. When you add in the allegations of double brokering, the whole thing starts to take on an unpleasant aroma.
     
    hauling_ass likes this.
  4. htcollections

    htcollections Active Member

    I Have to agree with LOADERS. Why would the end carrier want a discount from the carrier, and, factoring? How can he afford both discounts?
     
  5. htcollections

    htcollections Active Member

    @ Loaders. How would the Notice of Assignment help in this case? IF VTL pays a carrier in 7 Days, and the factoring company advances the end carrier, How does the NOA insure the end carrier does not get paid twice? Personally, i agree with Queen D, if a carrier can get away without full time Factoring, thats the best for them and take discounts when they need to only.
     
  6. htcollections

    htcollections Active Member

    @ Queen D I can't believe people now complain about Carriers paying too quickly. I understand why we all make comments when brokers/ carriers pay too slowly. If factoring companies can take a discount, why do they slight carriers for taking a discount? And why does any of it matter if a carrier agreed to it in writing?
     
    QueenD likes this.
  7. theman

    theman Well-Known Member

    I'm not with a factoring company. I'm with a transport company and I just smelled a rat with this. Follow the string from the beginning and you'll understand why.
     
    Shakey, Igor Galanter and loaders like this.
  8. htcollections

    htcollections Active Member

    WOW. So this is a case where someone like VTL should not pay in 7 days. I have seen this even with Owner Operators. Do you know which carrier this is? And which factoring company is the man and Watchdog?
     
  9. loaders

    loaders Site Supporter

    The reason he did this to me was simple, he was closing up his operation and was trying to grab as much cash as he could as quickly as he could. The factoring company got their money, the fraudulent carrier got his money twice, and I was left holding the bag. As a result, in addition to being very careful paying factored invoices, we are just as cautious making quick pay arrangements with carriers. If a carrier needs constant quick pay to survive, go to a factoring company, that's their job.
     
    KeyFactor likes this.
  10. htcollections

    htcollections Active Member

    You might be correct. Why would a carrier take a quick pay when they have factored their invoices? And why would a carrier complain about getting paid quick when they ve agreed to quick pay ? I usually see and respond to other members that are getting paid slow, but in this case, VTL pays in 7 days. Ive seen it myself. Ive witnessed their load agreements on a couple of occasions !
     
  11. loaders

    loaders Site Supporter

    There is certainly something unethical, and most likely illegal, about assigning an invoice to a factoring company, and then asking for a quick pay. No one gets paid twice for the same invoice, unless that is your devious M.O. as theman stated. It happened to me once, a long time ago. I had been dealing with a smaller carrier who unbeknownst to me, was experiencing some serious cash flow problems. He had previously factored a few of his invoices, but not all of them. When he asked for a 5 day quick pay on a larger invoice, a load to CA I believe, I agreed thinking I was being a "good guy", helping out another small business owner. You can imagine my surprise and dismay when a week later, I received a notice from his factoring company demanding payment of that same invoice. If memory serves me, I believe we did have to pay twice. There was something in the fine print from the factoring company stating that they were to be paid for all invoices once the carrier had entered into the assignment agreement with them. The lesson we learned from this was to be extremely vigilant when paying any invoice from a factoring company and making sure all of the paperwork is order. We are religious about having the initial assignment notice verified, and just as important, making sure we have a release notice from the factor if and when the carrier wants to stop using them or changes to another factoring company. Just another "wrinkle" that adds time and cost to running your business.
     
    KeyFactor likes this.
  12. youngtea

    youngtea Active Member

    Unless otherwise agreed to, brokers can't short pay any of their carriers. That's just bad business.

    It actually smells the opposite of double brokering as they are paying out before they get paid. It seems like they are trying to increase their profit margins and they have lots of cash on hand.
     
  13. theman

    theman Well-Known Member

    ??????

    No, not at all. The subject here is the company that we're talking about.

    It all screams double broker, and the M.O. for profit of this particular broker is to take 5 points for 'quick pay' even though not everyone is asking for it. A lot of brokers offer discount for early pay ... but a company that is invisible on the internet that claims to have all of these big customers. That's the problem, and many on the site agree with me on this. I only have the one ID on this forum.
     
    Trukker, DIETCOKE, chica123 and 2 others like this.
  14. htcollections

    htcollections Active Member

    Are you suggesting that only factoring companies can take discounts? We take discounts also. How many user IDs do you have here anyways? Im all for contracts/ carrier agreement terms being followed, by ALL parties. Speak to your clients, Don't allow them to sign agreements that allow QuickPays to be paid. Coming in after the fact seems exceptionally unreasonable! Drivers, carriers and clients need to follow the agreements they have signed. Trucking needs to be cleaned up. Ive seen carriers pick up freight after signing agreements, then immediately after they pick up a load, say, we do not agree to terms and we want money before we pick up. Again, that in unreasonable.
     
  15. theman

    theman Well-Known Member

    Not complaining that they're too fast. We just realized the M.O. of this company. This is a situation that is going to turn ugly, it's just a matter of when.
     
  16. htcollections

    htcollections Active Member

    Now we complain about people paying too fast. From what I've seen with their paperwork, they offer quickpay or 45 days at their choice. Read your paperwork always guys! 7 Day quick pays seem fair especially when carriers tell you up front!. Watch dog, are you a factoring company upset with a carrier doing the same that you do? At least carriers don't secure these peoples entire business.!
     
  17. theman

    theman Well-Known Member

    Two things to ponder ...

    5% for a 30-60 day wait on money will make a lot of money if VTL can get enough market share to cover their overhead ... but I think people are figuring them out pretty quickly.

    In the produce game, it used to be that the truck brokers would quote the money they were getting from the shipper and it would be less x% ... usually 8 at the time. I don't know if it still works that way because I don't really get involved in produce much anymore ... especially not from the OFTB or other markets.
     
  18. MikeJr

    MikeJr Moderator Staff Member

    If I could add 5% to the bottom line on every order in an industry where every dollar matters I'd sign up pretty quickly. That being said, a short pay and calling it a quick pay is interesting. What percentage of their suppliers are happy to have the fUnds fast, and what percent feel like they were taken for the 5%?

    Keep well,
    Mike
     
  19. Watchdog

    Watchdog Member

    They quick pay everything even if you have never asked for it and also for already factored invoices. SCAM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
     
  20. htcollections

    htcollections Active Member

    Follow up.........Fourth load and paid @ 7 days. Now to negotiate the 5 percent quick pay rate .
     

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