First of all I want to say hello to everyone on this website and I hope everything is going well. I wanted to know as a Independent Contract Driver how do you go about collecting your money from shippers. Do you send the original manifest with the terms and agreement of payment after I have made a copy of all or is it some other procedures I need to take?
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Billing shippers to collect your money!
- Thread starter pjeffries
- Start date
Hello Pjefferies;
I'm a little confused by your question,
if you are an "Independant CONTRACTOR" leased to a carrier, the Carrier bills the paying party.
If, however, you are an Indepenent "CARRIER", that is not leased to a Carrier, you should arrange with the shipper how they want to be billed.You must check who you are to bill as there are many corporation who use a third party service to "check"(read delay) carriers rates and payments.
You should issue an invoice accompanied with a signed copy of the bill of lading. You should have lots of money in the bank too, as the invoice will likely take from 30 to 90 days to be paid. This is called "cashflow" and companies in this type of economy are dragging payables out as long as they can.
RWA
I'm a little confused by your question,
if you are an "Independant CONTRACTOR" leased to a carrier, the Carrier bills the paying party.
If, however, you are an Indepenent "CARRIER", that is not leased to a Carrier, you should arrange with the shipper how they want to be billed.You must check who you are to bill as there are many corporation who use a third party service to "check"(read delay) carriers rates and payments.
You should issue an invoice accompanied with a signed copy of the bill of lading. You should have lots of money in the bank too, as the invoice will likely take from 30 to 90 days to be paid. This is called "cashflow" and companies in this type of economy are dragging payables out as long as they can.
RWA
Federal law states that all monies are due to pay in 15 days of receiving or shipping goods. If there is a company that still owes you money, you need to send them a certified letter stating they owe you money with a copy of signed bill of lading. To set good intentions for collections you should send letter of collections no more then three times, certified mail. You should follow up with phone calls within 7 days of each letter sent. For each phone call you make, take notes of time, date and who you talked to. If nothing is received, within 120 days of first letter sent, you can go to small claims court to file againest receiver/shipper. The last and finally item of collection would to go and talk to a Federal Marshal, showing all your attemps to collect on monies due.
I hope this helped you.
I hope this helped you.
I believe the 15 days that you are referring to applys if you are leased to a co. They have 15 days to pay you after you turn in all your paperwork for that load. As far as you being an independent, you must bill either the shipper or consignee, and they will pay you when they get around to it. Some might never pay you.
If your are an indepentent contractor not leased to anyone then the easist way to handle your outstanding invoices is to factor them to a Factoring Service, like TVH Service or any factoring company will to take you as a cleint. you pay anywhere from 2-7% of invoice for there commission, Which is a deductiable expense in the cost of doing business. This way you are paid within 24-48 hours from date they receive a copy of the bill of lading signed with the receivers signiture, they inturn do all the collection of your invoice. if They're invoice is not paid within so many days then they charge your account back for non-payment until they collect. The law states that bill of lading for freight received is 15 days, net 30. from date of invoice. You do not have to go and keep chasing your $$$$. and you have the cashflow to do repairs, pay for fuel and dont have to have more than $5,000 in the back to fall back on.
Check out this factoring idea and get rates and compare. each one is different.
REmember you being the driver, this takes time away from the wheels rolling to make $$$$$, This way all you do is pick=up and deliver and send to the factor, thats all. No Collection proceeding are done are your part, unless the Shipper or Consignee does not pay at all, but the Factor does most of the groundwork for you
Frank Katz
Franks Tax & Business Service
308 E. King St
Kings Mountain NC
Check out this factoring idea and get rates and compare. each one is different.
REmember you being the driver, this takes time away from the wheels rolling to make $$$$$, This way all you do is pick=up and deliver and send to the factor, thats all. No Collection proceeding are done are your part, unless the Shipper or Consignee does not pay at all, but the Factor does most of the groundwork for you
Frank Katz
Franks Tax & Business Service
308 E. King St
Kings Mountain NC