For fleets with slow-pay brokers
Brokers who pay late: measure them, then decide
Slow payment is a cost. Money you wait on does not cover fuel or payroll. The fix starts with numbers per broker: how many days they really take, how much sits open and how often they short pay.
Looking for what to do about one unpaid invoice? See broker not paying. Looking for ways to protect cash before booking? See broker payment delay.
- Group invoices by broker and measure days from invoice sent to money received.
- Look at dollars, not only invoice count. A few big late invoices matter most.
- Set your stop rule in advance, so the decision is not made under cash pressure.
Measuring
Four numbers per broker
Days to pay
Invoice sent date to payment received date, per invoice. Average it, then look at the slowest one. Terms on the rate con are your yardstick.
Open balance by age
What is unpaid now, in buckets by days outstanding. Use the invoice aging tool for the split.
Short pays
Invoices paid for less than billed. Count them and track the reason. See short-pay chargebacks.
Dollar-days
Invoice amount times days waiting. It shows which broker ties up the most cash, even if the invoice counts look similar.
A paid date is not enough on its own. Keep the invoice send date, the POD you attached and any reply from accounts payable. If the broker says it never received the invoice, those records are your answer. Send invoices the day of delivery, with the rate con and POD in one file.
The broker payment delay tool does this per broker from your own invoice dates. The method is in the broker payment delay guide.
Compare against your own limit
Pick a number of days you can carry. It depends on your cash, your credit line and whether you factor. The picture shows two brokers against one invented limit.
Credit and factoring change the math. Compare them in the factoring cost tool and the factoring vs direct billing guide. We are not a factor, and this is not financial advice.
What to do at each level
| Signal | First response | If it continues |
|---|---|---|
| Past terms on 1 invoice | Send a polite reminder with the POD attached | Call accounts payable |
| Average above your limit | Book fewer loads, ask for quick pay or shorter terms | Book only with payment before delivery |
| Repeated short pays | Send a rate con vs invoice check each time | Stop booking |
| Broker unreachable or unpaid after long delay | Talk to a lawyer about your options verify | Stop booking, keep records |
Worked example EXAMPLE VALUES
Invented numbers. Eight invoices to Broker A at $2,000 each, averaging 22 days to pay. Six invoices to Broker B at $2,000 each, averaging 58 days.
- Broker A: 8 x $2,000 = $16,000. Dollar-days: $16,000 x 22 = 352,000.
- Broker B: 6 x $2,000 = $12,000. Dollar-days: $12,000 x 58 = 696,000.
- Together: $28,000 billed, 1,048,000 dollar-days.
- Broker B is 12,000 / 28,000 = 43% of the dollars but 696,000 / 1,048,000 = 66% of the waiting.
Under the invented 45-day limit, Broker B is the one to review. Run the same check on your last 20 loads, broker by broker. Percentages are rounded.
Before you book the next load
- Payment terms written on the rate con.
- Open balance with this broker today.
- Average days to pay on the last 5 invoices.
- Quick-pay option and its fee, if any.
- Your own stop rule, written down.
Tools and data
- Cashflow simulator
- Invoice aging resource
- Rate con vs invoice
- Carrier safety data for who you are hauling for
Questions
Can I charge interest on late invoices?
Only if your agreement says so, and laws differ verify with a lawyer. We are not lawyers.
Does the audit name brokers?
It shows the brokers in your own files, as you entered them. It does not rate brokers from outside data.
Is factoring the answer to slow payers?
It moves the wait, and costs a fee. Compare the fee to what slow pay costs you, using your own numbers.
Related: broker payment delay, short-pay chargebacks, 5 to 15 truck fleets, broker not paying.
See what your last 20 loads show.
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