Want to raise a trucker’s blood pressure? Tell him that he will have to wait 60 days to get paid on a load.
Payment-terms are a critical part of the pay-collections cycle for the businessperson. It is especially important for the truck line owner. Why? The trucker has fronted the expense of moving the freight from point A to point B before he receives payment. He has paid for the fuel and the drivers’ wages. He has incurred the liability of transporting the freight over our congested U.S. highways. We are all familiar with the headaches that result from traffic accidents, lawsuits and litigation.
And to add insult to injury, slow pay! Don’t put up with it. You are not anyone’s bank. Here are the facts:
Freight invoices are paid on an average of 33 days. This is measured from the time that the invoice is mailed until payment is received. Brokers that pay in less than 33 days are typically using their own cash to pay the freight invoice. This is what you look for. It is a positive sign of business liquidity and financial strength.
We think it is good business to pay freight invoices faster than the average of 33 days. Shippers and brokers who pay faster than the norm typically enjoy greater levels of service and loyalty from their carrier friends. Greater service equates to long-term relationships with customers.
Accepting slow pay can be dicey. If it is slower than the norm, your risk of never getting paid goes way up. You don’t need the aggravation. So why put up with it?
Elizabeth Beerman
Director of Marketing, RTS Credit Service, Inc.
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Posted by rtscredit 
