FACTORING COMPANY DECLINES- but you still pick up the load

if the load is paying really well, youre in an area where only this broker has freight or youre really hung up on taking the load , ask them if they can pay you comcheck or some type of quickpay .
It would push the broker to the bottom of my list

 

Paid for the loads in the past, just took them over 40 days? How do they differ from any other in that aspect?

 

I had one like that and just bird-dogged it. Also, their office is 40 miles away from home, and around the corner from a shipper we visited often at the time. So not a big deal to show up in person, and I mentioned that. In a friendly way, of course.

I called the day after getting the confirmation of delivery, to make sure they had everything needed to process the payment, and got an acknowledgement. I started calling on day 30. They used the old check is in the mail crap for a couple days. After another week I was about to call and mention I would just drop by and pick one up. That was the day it showed in the mail. Longest ever 1st class mail service two counties away. That was their first and last ever.

 

wouldn't it have been appropriate to ask this BEFORE you loaded the load. and yes they will actually screw u, and you can file against their bond, but its a heckuva process, and yes you can be left with nothing.

my suggestion is if they are bad enough for a factor not to accept I wouldn't either...............

 

some factoring companies have a limited amount of capital, and they also screw up plenty. It probably just means they're tight on money so only factoring loads that pay within a couple weeks. If the broker has a decent credit score on the DAT registry, I wouldn't sweat it, heck, implement your own quickpay program offering them a few points off for payment within 7 days of reciept of POD.

 

40 days is a long time...If you took load anyway and previously factored that particular broker, then you WILL need a " Letter of Release" from your factor service in order for that broker to pay YOU directly. Factor service will not give you such letter rather send it directly to broker, but you must request it. But be advised, if that broker still owes the Factor Service money for a load YOU factored, then there won't be a Letter of Release until they are paid. Don't be understanding with late paying broker. On day 30, call and ask 'Where's my money". On day 40, you call broker's bond agent...Sometimes the agent will call them directly, sometimes not. Bottom line, If agent does not take action, then you do. The bond agent will tell you how to file claim on broker bond...Not difficult, keep track of date when you called broker about your pay & who you spoke to.. Had to do it twice, got paid in full right after I filed claims --claims cost brokers more money thru higher bond rates so you will get paid fairly quick, unless the broker went under and closed...That's a different mess. In the future, if the day-to-pay is more than 30, skip 'em.

 

If you do not get paid call the shipper directly and tell them what's up. I get it, we all sign a contract saying we will not back-solicit, at the same time we do expect and should be paid. I have no issue calling the financially responsible party ( meaning whoever paid the shipping bill to begin with ) and informing them that I never got paid for X load, here is my BOL, POD, Invoice and the date it went out.

At the end of the day even if a broker goes out of business the shipper is still on the hook for it. You may have to jump through nine hoops to get it but I never look at the bond, etc....just call the shipper first and see whats up. It's not back soliciting, its business.