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Heard on the CB

Build an Effective Collection Strategy

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Whatever kind of year your trucking business is having, a reliable collection routine is what keeps cash flowing so you can pay fuel, payroll and insurance on time. A few steady habits will shorten the time between delivery and payment.

Build the routine

  • Track every invoice. Know which invoices are open, how old they are and who owes you. The sooner you see a late payment, the sooner you can act. An open invoice report sorted by age works well. Trip Sheet Central has one, with the oldest first.
  • Agree on terms up front. Put payment terms in the contract or on the rate confirmation so there is no room for misunderstanding, and keep the signed copy with the load documents.
  • Know who you are working with. Check a new broker's or shipper's credentials and credit before you haul, and read Is your freight broker legit? for how to verify a broker.
  • Keep terms short. Try not to extend terms beyond 30 days. If a customer needs longer, consider a small discount for early payment. Do not extend credit to a customer you have not checked.
  • Follow up on a schedule. When an invoice passes its due date, send a reminder, then call. A call shows you are watching and often tells you why the payment is late. Have a letter ready that spells out the next step.
  • Know when to escalate. If you are not getting anywhere, a collection agency or an attorney may be the next step. For a broker, a claim against the broker's bond may be an option. Know the deadlines in your contract.

Get paid faster

  • Invoice right away. The clock on net-14 and net-7 terms usually starts when the customer receives the invoice and completed paperwork. Trip Sheet Central creates the invoice as soon as the load details are entered, so you can send it as soon as you are unloaded.
  • Send clean paperwork. Rate confirmation, signed bill of lading and invoice together. Missing documents are the most common reason payment is delayed. Photos of your documents taken in the app go straight onto the trip.
  • Use electronic payment. ACH and direct deposit reach your account sooner than a mailed check. Remote deposit lets you deposit checks by scanning them.
  • Consider quick pay or factoring. Many brokers offer quick pay for a fee, and factoring companies advance most of an invoice right away. Compare the fee with the cost of waiting, and read the contract carefully.

With a collection routine in place, you can spend your time on the rest of the business.