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Since becoming a freight broker back in 2003 I have learned the right way and the wrong way to ensure you get paid by your shippers.
Some of these may seem like common sense but you might be surprised how uncommon common sense is?
Here are 5 tips to ensure you will get paid by shippers
Tip #1 – Always run credit on shippers before you start moving their freight. Once you learn how to run credit on shipper it will only take 5 minutes.
Tip #2 – Do not extend credit to shippers that have been operating for less than 1 year. Stats show that 50% of businesses go out of business in their first 5 years. So businesses with limited operating history should pay you in advance by wire or credit card. manage risk.
Tip #3 – Call your shipper’s accounting dept and confirm the following: (Only necessary after you have established credit)
- Confirm the shipper billing address and ask if and how you can submit your invoices electronically,
- Confirm what documentation is necessary with your invoice to expedite payment. A bill of lading (BOL) is almost always required, but sometimes they may require other docs like: scale tickets, toll receipts, lumper receipts, shipping manifest, load #, pro#, etc.
- Always ask if they are interested in a 1% discount by paying their invoice within the first 10 days. This is referred to a 1% net 10 discount. Remember cash is not king….CASH FLOW IS KING!
Tip #4 – Always invoice your customers quickly. You do not want to sit on the invoices for days or weeks before you send the invoice. You need to make sure that all the necessary paperwork is included. Also try to send it electronically when an option.
Tip #5 Bonus Tip – My Shipper Collection Strategy that Saved Me Over $250,000! CLICK HERE FOR BONUS
If you implement these 5 freight broker tips I can virtually guarantee you will save yourself time, aggravation and most of all…MONEY!
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