General Rule?

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Sevana Ex

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May 13, 2010
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This just my opinion but, I honestly believe, that many freight brokers will wait until they are called before they pay an invoice.

That works for me as long as they pay when they are "reminded".

If you think about the volatility in the transportation industry and the fact that many carriers are very inexperienced, you never know when one will go under, or fail, for whatever reason, to collect their payment.

I would like to believe that this is not they way most brokers do business but, it seems odd that, many overdue invoices are suddenly "mailed yesterday" or "on this weeks check run" after they have sat on the payment for 60+ days.

Anyway, just some food for thought.
 
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While brokers are generally capitalized better than carriers (especially these days), there are those who decide they can broker freight themselves with little or no capital behind them and end up with cash flow problems. It doesn't mean they are out to screw anyone, but they're definitely high risk ... as Roca says, you need to know who you're dealing with.
 
theman said:
While brokers are generally capitalized better than carriers (especially these days), there are those who decide they can broker freight themselves with little or no capital behind them and end up with cash flow problems. It doesn't mean they are out to screw anyone, but they're definitely high risk ... as Roca says, you need to know who you're dealing with.
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but some guys are there to screw everyone...

getting $1000 paying $1500, with no intention of ever paying...
 
Crooks

Roca .

As a carrier I do not fully agree with your statement.

Anyone that will bill $1000.00 and pay out $1500.00 is simply a crook. He may hide under the guise of a freight broker or a carrier, neither matters, he is simply a thief!!
 
alx said:
Roca .

As a carrier I do not fully agree with your statement.

Anyone that will bill $1000.00 and pay out $1500.00 is simply a crook. He may hide under the guise of a freight broker or a carrier, neither matters, he is simply a thief!!
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thanks, that's EXACTLY what I said, read much?
 
Roca

My apologies for the mis understanding, English is my third language so I may lose something in the translation.

I beleive Sevana Ex was refering to freight brokers in general, there was no metion of carriers. That led me to beleive that you were only refering to freight brokers as well.

I simply stood up for the many legitimate freight brokers we deal with!
 
Just wanted to add my two cents for whatever its worth. We are primarily brokers with a small trucking division. We have been around for nearly nine years. We knew we would never be the biggest brokerage company out there, so we knew, in order to stand out and gain a good reputation, we needed to pay carriers quickly. Especially when times were good, and carriers had their options from whom to take freight from. We ALWAYS have paid in 30 days from receipt and never stopped paying at these terms even when customers deceided they could pay in 50-60-70 days. As brokers, we choose to accept our client's payment terms, and unless specified at time of booking, we would never try to deviate from our stanndards. It boggles my mind, that when we try to collect funds in our transport division, that other brokers have no shame when they say 'well, we havent been paid yet, so we will when we get our money'... such nerve, especially when we are very open about our payment terms being 30 days and they always agree to it before we accept the shipment. These consistently slow payers will get theirs. We aren't the biggest carrier in town, but we won't be jerked around or take freight from garbage brokers out of desperation. My hat comes off to other brokers who keep their word. They know that when they need service, we will bend over backwards to make sure every detail is followed since they keep up their end when it comes to payment.
Cheers to the good guys, the tides are turning and the guys who have been playing games will get swallowed up...and they won't be taking my money with them!
-Boss
 
alx said:
My apologies for the mis understanding, English is my third language so I may lose something in the translation.

I beleive Sevana Ex was refering to freight brokers in general, there was no metion of carriers. That led me to beleive that you were only refering to freight brokers as well.

I simply stood up for the many legitimate freight brokers we deal with!
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yes for sure some brokers are reputable and have been for a long time...

would you rather take a great rate and not get paid or a mediocre to low rate and get paid fast?

that is up to the great intelligent people in the companies to decide...
 
This thread is actually getting funny!!!

Here's my few cents worth:

- if a broker is going to make money on freight they are brokering out, the LEAST they can do for their carrier partners is protect them from bad debt ... if it's good enough for the broker to take, then the carrier should be paid to terms, simple as that
- any broker that is worth their salt will make sure they have access to cash to cover 60 days receivables
- a broker that won't pay out until they are paid is not customer service (to carrier or customer) focused
- a broker's job is not to pay the most money on a load -- it is to represent the shipper and carrier as an intermediary ... so the goal is the best service at a MARKET CORRECT price ... if they're below market, they are either attempting to push the market or are getting business on price, if they are too high, they won't keep their customer or maybe they're just not in it for the long haul ... in either case, carriers and shippers need to do their due diligence on knowing who they are dealing with
 
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