Payment Terms

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fedup

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Oct 21, 2020
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Brokers hire Carriers - which means the broker is ok with the carrier's terms but more frequently we see carrier confirmations coming over with unrealistic payment terms.
1st of all the carrier dictates what terms they are comfortable with based on their history with that particular broker and if the broker isn't happy with that they have the pleasure of continuing to find a carrier that is happy with extended terms - not the other way around.
We cross the terms out and put in what our expectations are - time to "right" the ship again carriers.
 
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There are bad or slow players on all sides in the transportation industry. Some shippers, particularly a few large ones are notorious for using their size and their volume of business to leverage carriers and brokers alike into accepting terms they might not usually agree to. No question, the brokerage business has its fair share of delinquent and tardy payers. If you follow this site regularly, you will come to find that most of the complaints you read about slow payers are usually regarding carriers who have brokered some of their "extra" freight to another carrier. No one sector holds a monopoly on slow payments.
 
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fedup said:
Brokers hire Carriers - which means the broker is ok with the carrier's terms but more frequently we see carrier confirmations coming over with unrealistic payment terms.
1st of all the carrier dictates what terms they are comfortable with based on their history with that particular broker and if the broker isn't happy with that they have the pleasure of continuing to find a carrier that is happy with extended terms - not the other way around.
We cross the terms out and put in what our expectations are - time to "right" the ship again carriers.
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Hey Fedup,

I'm curious what kind of unrealistic payment terms you are getting from carriers...

From my perspective (as a carrier), it seems most brokers treat our payment terms as more of a suggestion than a rule... haahahaa...

Our payment terms are posted as 30 days on our confirmations and invoices, and I rarely get payments within that range... I understand and am comfortable receiving payment up to 45 days... It's after 50 days that I get a bit concerned and of course after 60 days I get downright Pissy...
 
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We as a broker pay Net 30. We have a cheque run EVERY Friday. Many carrier send us invoice Net 15. Our confirmation shows NET 30 and we pay net 30.
 
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markhamboy said:
We as a broker pay Net 30. We have a cheque run EVERY Friday. Many carrier send us invoice Net 15. Our confirmation shows NET 30 and we pay net 30.
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Net15 eh... wow... While it would be great to be paid in 15 days, I'll never ask for it or expect it... haahaa...
 
jonny-chicken said:
Hey Fedup,

I'm curious what kind of unrealistic payment terms you are getting from carriers...

From my perspective (as a carrier), it seems most brokers treat our payment terms as more of a suggestion than a rule... haahahaa...

Our payment terms are posted as 30 days on our confirmations and invoices, and I rarely get payments within that range... I understand and am comfortable receiving payment up to 45 days... It's after 50 days that I get a bit concerned and of course after 60 days I get downright Pissy...
Click to expand...
We put Net 30 as that is standard - however there is a broker who had Net 60 - okay...when at the 60 day mark I called to check the answer was '...we look at the invoice at Net 60 and then it could be paid at any time after that in a check run we do every two weeks!!!!!' still waiting at 113 days... and counting.
 
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I pay in net 15 provided I get the invoice on time.. i.e. I can't pay in net 15 if the carrier takes 30 days to send the invoice. Some brokers/shippers undoubtedly pay slower than needed because their days to pay aren't reported or reported incorrectly. I get reported at 40 days routinely... even though the time from pickup to the time the amount of payment is out of my account is less than half that.
 
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Good morning,
We pay all our carriers and the factoring companies they use by EFT in 21 days or sooner AFTER receipt of invoice and clear, signed PODs.
My issue is that most carriers and factoring companies now back-date their invoices to the date they picked up but we do not receive the invoice and PODs for 14 to 30 + days AFTER the load is delivered. By doing this, they are now controlling MY credit rating.
I'm not impressed...
 
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Good Morning Beep Beep.
Sounds to me like your so-called carrier is double brokering and this is why they have a difficult time getting the paperwork on time.
We do not or will ever double broker - I've been around a long time and still believe in the integrity of the industry but unfortunately most newer carriers don't care.
Load Link is well aware of this practice but turns a blind eye because it's all about membership and money, not playing their part in attempting to keep the industry as above board as possible.
Again this post was not to beat up all the good brokers out there, it was about brokers deciding they have the authority to dictate payment terms. They accept the carriers terms when they agree to give the load to the carrier - not the other way around.
It's not the carrier's concern the brokers client doesn't pay them for 90 days - you can't download your problem to the carrier. This is what sets the good brokers from the rest, so a big shout out to all the good brokers out there.
 
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Beep Beep said:
Good morning,
We pay all our carriers and the factoring companies they use by EFT in 21 days or sooner AFTER receipt of invoice and clear, signed PODs.
My issue is that most carriers and factoring companies now back-date their invoices to the date they picked up but we do not receive the invoice and PODs for 14 to 30 + days AFTER the load is delivered. By doing this, they are now controlling MY credit rating.
I'm not impressed...
Click to expand...
Its 2021 - why wouldn't they scan and send the same/ next day? I mean I see a lot of rate conf where the terms are that POD must be sent within 48hrs of delivery
 
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jonny-chicken said:
Hey Fedup,

I'm curious what kind of unrealistic payment terms you are getting from carriers...

From my perspective (as a carrier), it seems most brokers treat our payment terms as more of a suggestion than a rule... haahahaa...

Our payment terms are posted as 30 days on our confirmations and invoices, and I rarely get payments within that range... I understand and am comfortable receiving payment up to 45 days... It's after 50 days that I get a bit concerned and of course after 60 days I get downright Pissy...
Click to expand...
Good Morning Jonny-chicken.
Most brokers just ignore the terms and do whatever they want - we have seen them come through at 75 days which obviously we refuse.
We have clients who pay in 60 even though our acceptable terms are 45 - the difference is they pay in 60 like clockwork.
Not sure where a new broker expects to "have credit" with no history - doesn't happen in any other business.
Carriers should demand COD or payment up front until the broker has established credit with them.
Where did this kind of thinking and acceptance become the norm in transportation - it's a crazy business plan for the carrier's for sure. Time to put a stop to it.
 
fedup said:
NOTE!!!! COVID or "working from home" is not an excuse for non or late payments to the carriers.
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We have absolutely no issues with timely payments to carriers.

The issues we have with carriers is them not sending signed PODs with invoices in a timely fashion, back dating invoices, or double brokering our loads.

I see a lot of comments and innuendo about dastardly brokers from carriers but you must also remember that before you criticize, make sure you are perfect (don't remember who said that but it stuck with me).

It's not just the brokers who have responsibilities in this business...
 
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Beep Beep said:
We have absolutely no issues with timely payments to carriers.

The issues we have with carriers is them not sending signed PODs with invoices in a timely fashion, back dating invoices, or double brokering our loads.

I see a lot of comments and innuendo about dastardly brokers from carriers but you must also remember that before you criticize, make sure you are perfect (don't remember who said that but it stuck with me).

It's not just the brokers who have responsibilities in this business...
Click to expand...

Well said.
 
markhamboy said:
Well said.
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I agree that the integrity of the industry has been compromised from both a broker and carrier stand point.
The intent for this posting was simply to address some concerns regarding payment terms and that point of view from both sides of the isle, not to beat up on every carrier and broker.
If you are not receiving your POD's in a timely manner, one would have to guess it's because the load was double-brokered.
If you have proof of this you should report it here and to Load Link - making each other aware is a good way of helping with issues we face every day.
 
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fedup said:
I agree that the integrity of the industry has been compromised from both a broker and carrier stand point.
The intent for this posting was simply to address some concerns regarding payment terms and that point of view from both sides of the isle, not to beat up on every carrier and broker.
If you are not receiving your POD's in a timely manner, one would have to guess it's because the load was double-brokered.
If you have proof of this you should report it here and to Load Link - making each other aware is a good way of helping with issues we face every day.
Click to expand...
Agreed
 
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