To be successful, motor carriers have to keep track of what is often a very complicated set of payment schedules and options. Some trucking companies work directly for manufacturers, distributors, and other shippers. Some trucking companies carry loads arranged by freight brokers. When a load is delivered and invoiced, freight brokers may offer motor carriers quick pay options or they may offer 30- or 45-day terms. Some trucking companies receive payments from both shippers and brokers.
The key to success is careful bookkeeping and follow-up, especially if you work for many customers who have a variety of payment terms. You don’t want to miss out on getting paid what you’re owed, including any additional lumper fees, detention payments, and other charges. You may be paid via fuel advance, ComChek to convert to cash, direct deposit, or check. Motor carriers need to remain vigilant, and sometimes need to make persistent phone calls, to ensure that payments are delivered as promised. Juggling all these business tasks can get complicated.
Invoice factoring makes sense for carrier payments
For both motor carriers and freight brokers, factoring can be the answer for simplifying the complexities of carrier payments. The growth of freight factoring has brought more uniformity to streamlined payments to more carriers. The increasing sophistication of the technology used by leading factoring companies has brought more transparency to payments with easy-to-use 24/7 online systems that let carriers see the status of their payments at all times.
At a top freight factoring company, motor carriers can trust that collections professionals are collecting payments from customers in a smooth and timely manner. Calling shippers and freight brokers to push them for payments becomes a thing of the past with a good factoring company. In addition, freight brokers don’t have to wait for customers to pay to issue carrier payments. A good factoring company can verify a load and pay the freight broker an advance on the same day the load is delivered. Offering quick pay is a valuable benefit that can help a freight brokerage with driver retention during these times of truck driver shortages.
Another benefit of today’s technology is the development of online load boards to help motor carriers stay on the road and avoid returning home with empty trucks. To search for loads on the world’s largest completely free load board, register today on FreeFreightSearch.com. It just takes a moment and you can start looking for loads wherever your truck will be located