The New Norm?!
- Thread starter Murraycroexp
- Start date
Murraycroexp
Veteran Expediter
There's plenty of risk not getting paid at all these days. But they reduce the risk of running out of cash for payroll & power bills.
Last edited:
Tennesseahawk
Veteran Expediter
You mean they're robbing Peter to pay Paul? Say it isn't so!
Wait a minute... I ran for a company that did that.
You mean they're robbing Peter to pay Paul? Say it isn't so!
Wait a minute... I ran for a company that did that.
Sounds just like the Federal government to me.
pearlpro
Expert Expediter
Ive used Factors and Ive been put off by the added fees etc, I dont see that a good company cant pay its bills in 30 days, WHAT difference does another 24 days make, other then they put it into there bank account make a few paltry bucks off it, then send it out to you after the offer of QUICK PAY and FEES....Bah Humbug...seems things are taking that turn for the worst....
Ive got a good line of Business Credit, a couple CC and Fuel cards, I can go quite a while but they should offer a carrot instead of a bag of POO to arrange long payment terms.....Id bet they all get paid far quicker then that, its the new sham....squeeze the little guy with the least say in anything, You know the one you depend on to get your Freight there on time , EVERYTIME...
Ive got a good line of Business Credit, a couple CC and Fuel cards, I can go quite a while but they should offer a carrot instead of a bag of POO to arrange long payment terms.....Id bet they all get paid far quicker then that, its the new sham....squeeze the little guy with the least say in anything, You know the one you depend on to get your Freight there on time , EVERYTIME...
bubblehead
Veteran Expediter
Not a problem... schedule the PU 53 days out!
Murraycroexp
Veteran Expediter
It wouldn't serve any good purpose on here. Pushing back payment to carriers is more and more common.
If I published a list, which I won't, of the 45+ day payers to us it may raise a lot of eyebrows.
I'm not saying the brokers are sitting on the money longer. Rather, I believe that I think the whole food chain is moving money slower down the line.
If I published a list, which I won't, of the 45+ day payers to us it may raise a lot of eyebrows.
I'm not saying the brokers are sitting on the money longer. Rather, I believe that I think the whole food chain is moving money slower down the line.
I agree with Murray. Everyone had slowed down payment cycles. As a carrier, realistically you should be prepared for customers to pay 45 to 60 on average. We still pay our carriers 30 days electronically but more and more we see that is not the norm.
didn't we go thru this in the 08 mini recession?...with higher interest rates no one wanted to carry a line of credit to pay so they were pushing 90 days with some brokers...that is business 101.....
and WE as business operators should have a back up plan when something or the economy takes a turn.....business is what business does.....
and WE as business operators should have a back up plan when something or the economy takes a turn.....business is what business does.....
Well what Broker is it??? Don't stir the Pot like a Bunch of Skally Wogs here. Name the Broker and then pitch in to put them outa Business for good. Please name the BROKER.... The Expediter Fleet is Listening. This thread reminds me of the 60s when Standard Oil came out with Credit Cards for everyone for gas tires belts oil changes. But the Public would go over the allotted limit and guess who got stuck with the bill. You guessed it the Service Station Owner. (The Card even though Standard Oil Credit card) Supposedly non affiliated with Standard Oil Company. Go Figure, a lot of Service station owners lost their you Business. Because at that time no way to check the Cards limit. The only ones that made out in the deal was the customer and of Course the Standard Oil Company its self. You talk of a Big bad Broker doing that type of pay. Sounds to me like some one is moving money around or trying to hid something. Stay Clear of that Broker sounds like they are in over their head and borrowing from Peter to Pay Paul. Move on down the road and don't use them let them drown in their own Demise.
Last edited:
Murraycroexp
Veteran Expediter
Nope. It's becoming closer to the norm. It's not some big conspiracy. It's the way it will be with many brokers soon.
"I'll pay you when I get paid."
I'm not beeching. We do the same EXACT thing with our drivers. But it takes a special level of personal and financial management to be able to handle that struggle. We know that.
But out drivers have their shyte together fo sho!!
"I'll pay you when I get paid."
I'm not beeching. We do the same EXACT thing with our drivers. But it takes a special level of personal and financial management to be able to handle that struggle. We know that.
But out drivers have their shyte together fo sho!!
Well... had to google this one and I am not a born American, neither was I on this earth in the 60s. I wasn't planning on lying and I definitely do not smell bad
. And I'm 99.99% sure this forum couldn't take a broker out of business. I'd like to believe this is not the norm and that it will not be the norm. Considering the shortage of truck drivers and how tough this job is, adding a "you get paid when I get paid" clause in their contract will only make it worse. I also get to be on the other end of this world and I know for sure I do not have one single freight forwarder that extends me more than 30 days credit, if that. So I'm just trying to see what exactly is the "truth" about where the money do get stuck.
Murraycroexp
Veteran Expediter
If I understand the question....
MAYBE there are more companies in the chain between the first company to write the check and the last "company" to cash the check. (ie, the driver)
And maybe those additional layers add processing time to the pay cycle. If every company in the chain adds a few to several days for processing, I'm guessing that potentially adds a fair amount of time.
Just one theory.
MAYBE there are more companies in the chain between the first company to write the check and the last "company" to cash the check. (ie, the driver)
And maybe those additional layers add processing time to the pay cycle. If every company in the chain adds a few to several days for processing, I'm guessing that potentially adds a fair amount of time.
Just one theory.
My belief at this time is that money is stuck with the brokers so I can make a conscience decision not to work with the ones changing their payment terms like this all of a sudden. Of course that is because I do have a multitude of brokers that do pay on time, so I can afford to lose one. And also since I do work with Net 15, 20, 30 paying brokers, a 30 days shift is to me an indicator the company is financial distress. That's why the name question. When this will be the norm as everyone tends to believe, name won't matter. To me, today at least, a name does matter.
I say one thing (The Co Pays on time ) I don't got to worry about 54 days and such. I know I do the load one week the next week Its a done deal Money in hand.
I would be very leery. The longer a brokers payment terms the less of a chance that the broker bond will cover much in the event of non payment. We just got burned the other day when Leading Edge filed chap 7 and closed their doors. No one likes working for free.
westmicher
Veteran Expediter
When a broker files chapter 7, is there anything that prevents them from opening up the next day under a different name?
Honestly very little. Especially if they got brokerage authority and a bond before shutting the other company down.
Now with that being said most old shippers are not going to be happy as they get thrown into the issue and will most likely not use the new company.
Exactly! As more and more parties come between the shipper and the consignee, money slows down. Shippers, or at least large shippers call the shots. If a large shipper goes from 45 days to 60 or 90 days, the 3PL either complies or loses a customer. Back in my LTL days 3M paid on 90 days and this was direct to the carrier. No middle men. If you want to haul their freight, you play by their rules.