Is there anything more annoying (and potentially devastating) than an invoice that just doesn’t get paid. Not only is it annoying and time-consuming to nag brokers for payment, but it’s also a massive waste of time, money, and resources for your business and often results in a broker “breakup” to avoid future disputes.
There are multiple reasons why a broker might not complete a payment. There may have been an issue with the shipment or the paperwork. Worse, they may have gone bankrupt and no longer have the funds to pay you the money you’re owed. Perhaps worst of all, you may just be dealing with an unreputable client who doesn’t intend on paying.
What can freight companies do to ensure they get paid?
If you aren’t getting paid the money you are owed, fortunately, there are multiple avenues you can take to make it right. Of course, if there is an issue leading your client to withhold payment, do all you can to rectify that issue.
If it has nothing to do with your work and everything to do with the broker, things get a little trickier. If they’ve gone broke, your chances of getting pay decrease by a lot. If they file for bankruptcy, you may have a chance, but you’re likely going to have to wait a while if you do ever see your money.
If the broker has the money but just doesn’t intend on paying for whatever reason, you may have to sue them or sell the invoice to a collection agency. You can also file a claim against the freight broker’s surety bond with DOT (US Department of Transportation). None of these options are fun or easy or ensure you’ll get your money, but these are the best bets you have.
Avoid a dispute by setting up a broker agreement from the start.
Rather than deal with the fallout after a payment dispute, you want to do everything you can to prevent nonpayment before it happens. You can do that by being extremely clear upfront and putting everything in writing. For that, you can hammer out a broker agreement.
Use a broker agreement every time, even if you’re working with a reputable, trustworthy broker. Without documentation, it’s like your business transaction never happened. If a dispute arises, and you have to bring in a legal team, you’ll be glad you have everything in writing.
Never chase late payments again with the help of freight invoice factoring.
You can make your life even easier in the event of a nonpayment with the services of a freight factoring company. If a client doesn’t pay or is slow to pay, it’s a factoring company’s job to hunt down your payment for you.
Contact a great freight factoring company like Apex Factoring or OTR Capital Factoring today to protect your finances and make your life a lot easier!
Let us help you find the best factoring company for your freight business!
If you are interested in pursuing freight invoice factoring but unsure how to find the best trucking factoring company for you, look no further than Top 5 Factoring! Head over to our ratings to see the best freight factoring companies for trucking businesses you should consider signing a contract with. If you have further questions about freight factoring rates or the best freight factoring company for you, contact us today, and we’ll assist you!