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OK, so it's clear that there's an abundance of non-paying or extremely slow paying companies that are being dealt with so I figure this thread will be a guide for everyone, starting now, to collectively act on to solve the problem.
Here's what I'd recommend for any customer/broker that is either new or slow paying:
1. At the 40 day mark, directly ask for the cheque # and when it is being sent out. If there were any issues, like claims or rate disputes, you hopefully have resolved them before this point, or been made aware of it. Make sure to ask if there was a problem if you sense there is a delay in payment for some reason (missing PO # or POD is a common one.)
2. If no cheque has been received by day 50 (a reasonable benchmark to expect invoices to be cleared off with a payment), ask to speak to the controller or whoever releases cheques and ask where the cheque is. If the answer you receive is not satisfactory (example: sudden change in payment terms vs what was agreed, internal bureaucracy, something unrelated to how the order was completed) and you feel that it is a stalling tactic, escalate it to the person you booked the load with (as long as there are no claims or rate disputes) and let them know you are having a problem collecting. If there is an issue that previously was not made aware to you, try to resolve it.
3. If you continue to have no resolution at day 55 and they cannot either tell you when a cheque is being released or if you have not otherwise received payment, place their account on hold. If an order comes in, advise them they have to issue payment immediately before a truck can be dispatched. Taking a load "hostage" is not recommended, particularly if you only want to make a point to the delinquent customer who you otherwise value. Advise the customer they are on credit hold when they attempt to order a truck and ask for payment by courier to resolve the account. You do not have to reinstate credit status for that customer if you feel they should pay on a load by load basis, if they are a risk.
4. If the account continues to be delinquent, you can do 2 things: 1. if they are a Link customer, report them to complaints@linklogi.com and 2. report them to Equifax. Continue to call accounts payable and escalate up the chain to management, advising them that you are now notifying Equifax about the account aging and to avoid further action and accrual of interest, payment is required.
5. Also send statements at day 50, 55 and 60 and punctuate with notes about their account status as described in 3 and 4.
6. If you do not receive resolution at any level by day 60, go straight to collections and notify the client of this.
Again, depending on what due diligence you have done to screen the client/broker's references to verify their worthiness, you also have to remember you are trying to foster a relationship and hopefully get repeat business. If the paying party had no intention of doing this and used you for one load or is trying to do something fraudulent, you should be going to these levels to get your money and recoup costs.
Please add your tips and benchmarks.
This is the only way everyone can deal with the bad brokers.
Here's what I'd recommend for any customer/broker that is either new or slow paying:
1. At the 40 day mark, directly ask for the cheque # and when it is being sent out. If there were any issues, like claims or rate disputes, you hopefully have resolved them before this point, or been made aware of it. Make sure to ask if there was a problem if you sense there is a delay in payment for some reason (missing PO # or POD is a common one.)
2. If no cheque has been received by day 50 (a reasonable benchmark to expect invoices to be cleared off with a payment), ask to speak to the controller or whoever releases cheques and ask where the cheque is. If the answer you receive is not satisfactory (example: sudden change in payment terms vs what was agreed, internal bureaucracy, something unrelated to how the order was completed) and you feel that it is a stalling tactic, escalate it to the person you booked the load with (as long as there are no claims or rate disputes) and let them know you are having a problem collecting. If there is an issue that previously was not made aware to you, try to resolve it.
3. If you continue to have no resolution at day 55 and they cannot either tell you when a cheque is being released or if you have not otherwise received payment, place their account on hold. If an order comes in, advise them they have to issue payment immediately before a truck can be dispatched. Taking a load "hostage" is not recommended, particularly if you only want to make a point to the delinquent customer who you otherwise value. Advise the customer they are on credit hold when they attempt to order a truck and ask for payment by courier to resolve the account. You do not have to reinstate credit status for that customer if you feel they should pay on a load by load basis, if they are a risk.
4. If the account continues to be delinquent, you can do 2 things: 1. if they are a Link customer, report them to complaints@linklogi.com and 2. report them to Equifax. Continue to call accounts payable and escalate up the chain to management, advising them that you are now notifying Equifax about the account aging and to avoid further action and accrual of interest, payment is required.
5. Also send statements at day 50, 55 and 60 and punctuate with notes about their account status as described in 3 and 4.
6. If you do not receive resolution at any level by day 60, go straight to collections and notify the client of this.
Again, depending on what due diligence you have done to screen the client/broker's references to verify their worthiness, you also have to remember you are trying to foster a relationship and hopefully get repeat business. If the paying party had no intention of doing this and used you for one load or is trying to do something fraudulent, you should be going to these levels to get your money and recoup costs.
Please add your tips and benchmarks.
This is the only way everyone can deal with the bad brokers.
