Accounts Receivable Collection Techniques
As a service to our members, we have compiled the following collection techniques to help you receive the payments you are rightfully due for the services you provide.

These procedures have proven to reduce bad debt to levels far below the industry standard. The best part is that managing accounts receivable can be simple and straightforward.

Here Are a Few Points to Keep in Mind

• This in not an all-encompassing guide to collections, and it does not apply to each and every situation. It is a solid framework to help make sure you are paid fairly. Certain situations may require different actions. This information is not a substitute for legal advice. Consult a qualified transportation attorney if you feel your situation is warranted. These are proven techniques, but use them at your own discretion.
• These collection techniques work for loads that have been delivered on time, without damaged goods, shortages of goods or other circumstances that may affect payment. If you deliver a load with shortages, damages or related circumstances, it will likely delay the payment process. You may wish to reconsider these steps in such instances.
• Knowing the payment history of a broker is important, so check brokers with Truckload Credit on a regular basis. If a broker has a history of paying freight bills in 45 days, but you expect to be paid in 15 days, use another broker or prepare to invest considerable effort in your collections activities.

Collection techniques are listed in chronological order, from the time you book a load to the events that occur after delivering it.

Things To Do Before Delivering The Load
Before working with any broker, you should always try to have the following information:

• The legal name and MC number of the broker. Make sure the broker is licensed by the Department of Transportation and that their authority is active. When you view a broker’s listing with Truckload Credit, you can click the broker’s MC number to verify the status of their authority. If the broker is not listed with Truckload Credit, you can visit the FMCSA web site directly at http://li-public.fmcsa.dot.gov and select Carrier Search.
• The physical address for the broker’s main office. Don’t settle for the address of the agent you are booking the load with or a P.O. Box address. Mailing freight bills and other correspondence to a P.O. Box is common and acceptable, but you should always be aware of the broker's physical address.
• Have a copy of the broker’s surety bond on file. Be sure it is current and you can identify the company that issued the bond, typically an insurance or finance company.

Make sure you provide the broker with your current insurance certificate, IRS form W9, certificate of authority, broker/carrier contract (master contract) and any other documents the broker may need. Keep a detailed record of when you submitted these documents and to whom you sent them. Even though they allowed you to deliver the load, some brokers have been known to withhold payment, claiming they do not have all required documents.

Prior to hauling any loads for a broker, always enter into a written service contract. And make sure you have a signed rate contract or rate sheet for each load. The rate sheet must be as specific as possible, covering all charges, fees and rates that apply. Considerations such as fuel surcharges, terms for advances and advance fees, detention charges, lumper fees and pallet costs should be clearly stated on the rate sheet to avoid confusion or misunderstanding. It is also helpful to have the broker include payment terms in the contract. Whenever possible, have the shipper and consignee listed on the contract, along with their addresses and phone numbers. Make sure the broker signs the rate sheet before you sign it. You must always sign and return the contract to the broker before you pick up a load. You should never take an advance until you have a signed contract.

While delivering the load, check in with the broker every day, regardless of whether you are required to do so. Keep a written record of all of these calls. Always have the broker confirm the service you are providing is sufficient within the terms of your contract, so there will not be any dispute regarding the level of service you provide.

If there are ever any changes to your agreement, obtain an amended rate sheet signed by the broker before you deliver the load. For example, if you take an advance, have the advance plus any fees the broker may charge itemized in your contract. This reduces the chance of short-paid invoices. Your legal rights are severely diminished once you have delivered the load, so you must act quickly to secure any adjustments that may be required.

You should always make sure the broker clearly explains what paperwork you need to submit in order to receive timely payment. Many carriers also create their own uniform straight bill of lading for each delivery. By doing so, there is never any doubt regarding the existence of a legally binding document listing the correct consignor and consignee with correct addresses, dates and times. This proves a pickup and delivery were made. Do not list the broker on your bill of lading.

Under any and all circumstances, be sure that you have the original signatures of the consignor, the consignee and of the driver on every bill of lading you create. The more you learn about the legal characteristics of a bill of lading and how the it protects your rights as a carrier, the better off you will be in the long run, especially if payment issues arise. Consulting a qualified transportation attorney about these matters can be worthwhile.

When the load has been delivered, confirm again with the broker that the paperwork you have is sufficient for full payment within terms.

Also, be sure the broker will do two important things:

Send payment to the proper payment address

Pay the agreed upon amount in full

In the event of a disagreement or discrepancy, do not remit any paperwork to the broker until matters have been resolved to your satisfaction. Remember, in most cases, the broker will not get paid by their customer without your paperwork. Resolve any problems before you fax or mail anything.

Things To Do After Delivering The Load
Well of course, this is the the most important information. But it's available only to members.

Become a member today to read the rest of our collection techniques. Plus you'll also get unlimited access to the best broker payment history informaton in the trucking industry.