5 Ways to Avoid Late Load Payments
There is nothing fun about not getting paid for the loads you have hauled. Unfortunately, every small trucking company and owner-operator will eventually encounter clients who take 45, 60 days, or even longer to pay.
This can create a strain on your time and cash flow because you have already prepaid for items like fuel and insurance and now you must follow up with your clients for payment. It is always hard to seek funds you are rightfully owed. But there is also the possibility that you could hurt your relationship with your clients by having to ask for the payment more than once. This all adds up to something you would love to avoid.
Fortunately, there are a few solutions to help you eliminate or lessen the need to chase late payments. These solutions include things you can quickly and easily do yourself and others that require you to find a trusted partner to help.
1. Have clear payment terms
It helps to set expectations with your clients from the start. Clearly define if payment is due on receipt, within 30 days, or whatever terms work best for your business.
2. Make sure you know your clients and brokers before you haul the load
What if you had a crystal ball and could predict when your clients were going to pay? Conducting credit checks on prospective clients and brokers before you haul the first load is the next best thing. You can obtain a sense for how long they have taken to pay other suppliers in the past. This won’t guarantee how they will handle your payment, but it can provide some insight and allow you to pass on the load if their history does not match with your business needs.
You might be thinking, “But there will be a cost to doing a credit check?” …Read the rest of this story
