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Average Days to Pay

Oct 31, 2014 at 10:56 AM CST
+ 4
The average days to pay listed on this site are incorrect. We have hauled loads listed at an average days to pay at 15 and 45 day latter are still waiting for pay. This is the norm not the exception. I don't believe in factoring. If you have to pay a factoring company and a broker you might as well stay home. I would appreciate an honest days to pay. I am sick of hauling loads and being out 45 to 60 days.
Replied on Fri, Oct 31, 2014 at 01:42 PM CST
David if you don't call the customer at least once a week and ask about your money then they will often times forget you.

The squeaky wheel gets the grease.

We only report the actual days to pay, there are others that cut off the days thinking if they make the customer look better then that customer will give them more work and possibly more money.

As far as using a factor or broker, it doesn't matter to us, our rate is still our rate. We just add in the additional rate to those customers that take longer then 14 days to pay. If the broker does not want to pay your rate than you don't have to work with them, if the shipper is slow pay and they are willing to pay your rate with the factoring built in, what does it matter?

Cash is King, the sooner you get your cash the sooner you are the king.
Replied on Fri, Oct 31, 2014 at 03:14 PM CST
That's my point if 15 days to pay is posted I should be paid in 15 days with no phone calls being made. There shouldn't have to be squeaky wheels in order to be paid.
Replied on Fri, Oct 31, 2014 at 04:23 PM CST
I agree with you, but if I have to call once in a while, I understand. My customers are processing on some days up to 1000 tickets, so to expect them to not miss one from time to time would be unreasonable. Have you ever forgot to pay a bill and the company then in turn called you and you sent the check or payed them immediately. Now there are customer's out there that want to hold onto your money for that extra 15-30 days just to make the little bit of interest on the money. I am with you on that, I wish there was a way we could add on a late fee like the banks or bill companies do to us when we are late with our payments. But alas that is the cost of doing business. You still have the choice to not haul for customers that are long on the paying, or factor the load, or build in a higher rate for the slow payers and then you can ride it out after a few loads.

As far as the ratings on this site, that is the individual trucker/operator's responsibility to be truthful.

A freind of mine told me this joke:

Two truckers walk into a whorehouse, and the only ones that get laid are the two truckers.

Here is a program designed to help each other and the only thing that truckers are doing is screwing each other.
Replied on Fri, Oct 31, 2014 at 09:36 PM CST
+ 2 - 1
A Factoring company is just another tool. If used correctly it is very useful. People need to get over terminology. Broker - Factor companies Names used properly will make you money. I have a factoring company. I can call them and get credit info. If the company is a slam dunk great credit I haul load and bill it on my own. If I am worried about the money I use the factor. I can then look how the company pays the factor, then in the future I can make better informed decisions. I always use them to check credit even if I haul somewhat regularly to stay on top of changes. Brokers and factor fees are calculated into the rate offered and simply it pays enough or not. Like Alfred said Cash in hand is a good thing. I can't spend accounts recievable. If you think that all of these people are going to pay on time or base a decision off the days to pay thing, you are nieve.

Art Pfluger
Replied on Mon, Nov 03, 2014 at 10:13 AM CST
I have tried to force a 15 day to pay policy when quoting rate, but it seems like most times the guy on the phone doesn't have the authority to do that. Factoring companies have been a sore subject for me as well, as I believe the whole "I worked to get the rate, why give a percentage to somebody else?" Kind of goes against the whole idea of going out on your own to begin with.

Now that I got that off my chest, anybody got a good factoring company to recommend? Maybe one with a good fuel card program? Can you negotiate percentage with them? And if so, how much volume do you have to be pushing through their company weekly/monthly?

Thanks
Matt Siverson
Replied on Mon, Nov 03, 2014 at 01:07 PM CST
+ 1
As a factoring company we also agree that "cash is king" and that is what we want to help everyone in the trucking industry with. At Smart Freight Funding, we come from a back ground of drivers and dispatchers so we understand the issues and difficulties involved in trucking. We have rates as low at 3% and pay next day, no matter how long it takes for us to collect. To answer your question about volume, there are no minimums and no maximums that you need to factor with us. Also you don't have to factor 100% of your loads with us either. We allow you to factor only the ones you would like paid for next day. If you are interested in learning more either visit our website at smartfreightfunding.com or give me a call any time at 402-516-5971.

Thanks

Nate
Replied on Tue, Nov 04, 2014 at 10:47 PM CST
I guess I can UNDERSTAND the concept (not really) but for the sake of honoring what was said, I'll go along with it. First and foremost, I SHOULDN'T have to calll you at all for you to pay me what you owe. That is the SOLE problem with AMERICA today... If I haul your load then place my paperwork in ther "NEXT TO DO' box and PAY ME. Why should I have to continually call anyone for work that I agreed to do and DID? That's what I don't understand... I've seen NUMEROUS broker ring my phone off the hook in an attempt to get me to haul their load(s). My point? They (broker/shipper) find the time to call when the loads aren't covered so they should use that same TENACITY and diligence to pay the truck after the load is delivered. PERIOD!! If the work load is too great then said broker needs to hire additional help to get the delivering carrier PAID in a timely fashion. PERIOD... anything else is just not acceptable. If you say you pay in 14 days then the check should be cut on day 11 or 12 and in the mail, otherwise it's a lie... and by all means, just another industry trick to obtain a truck to haul a load with the driver thinking that you'll pay in the time frame that you posted. That's about it in a nutshell and anything else is BS..
Replied on Sat, Nov 08, 2014 at 12:44 PM CST
,in some cases factor company will offer benefit s on fuel and so on that offset the fee on factor just depends on who you use I myself use loves the nonrecourse and get what fees I pay back in the savings in fuel with their discount and the peace of mind to not have to worry if I'm gonna get paid or not
Replied on Sat, Nov 08, 2014 at 12:47 PM CST
so true its another tool that just have to use and since paying for it with factor fee
Replied on Sat, Nov 08, 2014 at 09:49 PM CST
David and All,

My company is asset based, we take the needs of the trucks seriously. We just celebrated our 1 year Anniv for the brokerage and the asset division has been around 10 years. To date, we have not missed a payment to a carrier even if we have been delayed payment by our customers. We do offer quick pay for those who want it. It angers me when I hear how bad my industry can and does treat a truck! I am the only broker in our brokerage that does bulk freight and beyond that, we offer full services--heavy haul, van, reefer, hot shot, flats/steps, and all in-between.

If you want to discuss your total freight needs or want to discuss hauling for us, please give me a call 541-941-6834 (cell and you can text me) or e-mail me at [email protected]

Come see the difference working with a brokerage that has 25 plus power units that needs good brokers and shippers,

Matthew A. Eldridge

Robinson Transport, Inc (NOT C.H. Robinson)

Medford(White City)/Central Point, OR
Replied on Sun, Nov 09, 2014 at 10:26 PM CST
+ 2
I see no reason for a factoring company, but my customers pay quick. I do billing for my small 5 truck fleet on the weekends. I might receive payment from my local customers by the end of the week. Some of our brokers receive our statement and pay the following week. My main account that asked me to go into business 10 years ago pays on receipt. I haul the last load on Friday, invoice tickets over the weekend and deliver them on Monday. From the time I scale in and load the trailer, she prints my check and hands it to me when I scale out. I'd say the longest I wait on average is 2 weeks and that included the time in the mail. Sometimes a farmer may wait to pay until we are finished with harvest, but we agree on that beforehand. My customers understand I'm not a banker, and don't treat me as such.
Replied on Tue, Dec 29, 2015 at 02:53 PM CST

We are also a factoring company that for 17 years has worked with trucking companies and helped them grow by providing their cash flow needs. Our rates are FLAT and non escalating for a full 90 days. Advance rates are from 95-98%.

Factoring is NOT the devil! We are in business and provide a service for a fee. I talk to at least a dozen trucking companies every day, from all across the country - and I never hear from any of them that the brokers or shippers that they haul for are paying them quickly unless... they are charging them a "discounted quick pay" OR that they pay quickly because the amount that they pay for the load is less. I ask you - is it better business to go after the highest paying loads or to go after the loads that pay the fastest? To me this is the real question. It doesnt matter what you pay to a factor, or anyone else. It is what you can make on the load.

We buy and pay out hundreds of millions of dollars a year in invoices. I can tell you that we track very closely how ALL the brokers pay (in how many days) and that number of days is going up for almost all of them. Shippers and brokers are paying slower than they were last year, and even slower than they did the year before. There are exceptions but that is the trend.

Is it worth 1.5% to 2.5% to get your money the same day? Especially, when today the average payment is approaching 45 days (some are much longer). You tell me if getting your cash today is worth a couple of percent.

The first lesson I learned in business 30 years ago is that what matters is the DIFFERENCE between what you charge and what it costs to do business. Trucking companies should focus on getting higher paying loads, saving money using gas cards, and not on how many days it takes a customer to pay. Let us focus on that - it is what we do. This is the same reason that you do not order pizza at a chinese restaurant. You dont go to your doctor for legal advice... Let us do what we do best and you focus on what you do best. Together everyone makes more money. Just my opinion. Hope I didn't offend anyone.

Replied on Wed, Dec 30, 2015 at 07:11 AM CST
You have to remember it's X# of days from the time they get invioce. So if your like me and mail in the invoice and tickets. You have to add in time in the mail on both ends. There are times it may take a week to get the tickets from the drivers. But I agree these no reason to take 30+ days to pay, or to have to give anybody a percent of your rate to pay you. Most times if you take the quick pay they won't pay any fuel surcharge for 30 days any way. Good luck collecting that after 30 days. It's funny one of are main customers is a local elavator. Turn tickets in on Wednesday check in mail box by Friday. And there are weeks that I may turn in up to 75 tickets between my three trucks. They have 6-7 other elevators now around the state, and have to have 100+ trucks hualing for them. But one girl in the office can manage all them invoices and get trucks paid.
Replied on Wed, Dec 30, 2015 at 11:53 PM CST
+ 2
With respect to all on this one. It comes down to your personal business model. A factoring company is nothing more than another business tool. If used correctly it will make you more than it costs. I use Smart Freight. The fuel card saves me more than the fees and having my money now instead of later, no brainer. At the same time I run long haul and I have less steady customers than maybe Daniel or Jason. They have a differnt business model and operating perameters. This like a stock broker telling you to have a mixed portfolio. That is our goal, have a mixed bag of direct customers with others and use the factoring company wisely. Just another tool. Scrap the hang up on terminology an look at the business application. Make sure that the fuel savings won't offset the others fees and so on. Just BS from an old school dumb ass.

Art Pfluger
Replied on Thu, Dec 31, 2015 at 08:12 AM CST

I agree with you art. Its a tool to use and like you say depends on your business model. For me its a tool i havent needed yet. Ive tried differant ful cards havent found one i like. Most all bill on a weekly basis and will not give you any credit. So even though you havent hit spend limit if that checks not there in ten days of billing they turn card off. I have one i give new drivers once they eren trust they get a credit card. The pionts/cash back i earn out ways any fuel card disscount. And i dont have to worry about drivers calling me at midnight becouse they got $500 of fuel and card wont work. And of crouse their 5 hours away from me and the place wont take a card over phone. Or if they have some issue with truck they can get it taken care of with out it being a big deal. But again we all run our businesses differant.

Replied on Thu, Dec 31, 2015 at 08:21 AM CST
Originally Posted by: ROSE PFLUGER
Quote: "With respect to all on this one. It comes down to your personal business model. A factoring company is nothing more than another business tool. If used correctly it will make you more than it costs. I use Smart Freight. The fuel card saves me more than the fees and having my money now instead of later, no brainer. At the same time I run long haul and I have less steady customers than maybe Daniel or Jason. They have a differnt business model and operating perameters. This like a stock broker telling you to have a mixed portfolio. That is our goal, have a mixed bag of direct customers with others and use the factoring company wisely. Just another tool. Scrap the hang up on terminology an look at the business application. Make sure that the fuel savings won't offset the others fees and so on. Just BS from an old school dumb ass. Art Pfluger"

I agree with you Art. It truly does depend on your business model. Use your factor wisely. No reason to ever factor your regular long-term customers that pay you very quickly and regulally. Of course you can fix a truck with a pair of pliars and a screwdriver, but it is a LOT easier if you use the right tools. I think some people make everything a lot harder and more complicated than it needs to be.
Replied on Thu, Dec 31, 2015 at 08:34 AM CST
At Smart Freight Funding we pride ourselves in working with our drivers to help them become more profitable as opposed to working against them. We don't make our drivers sign any contracts, there are no minimums, and we provide fuel cards and cash advances. Our owners come from the trucking industry and understand the hard work that goes into making a small trucking company successful. Our next day pay and savings through our fuel cards are only a few of the things we do for our drivers. People are the most important part of this business and we feel like our staff are some of the best, and we work with some of the best drivers in the industry. If you want any more information about what we can provide your business please shoot me an email at [email protected] or give me a call at 800-838-2907.

Nate