Guide
Broker not paying: an escalation ladder with dates
Most unpaid invoices are paperwork problems, not fraud. The ladder below starts with the cheapest fix and moves up only when the earlier rung fails. Set the dates when you invoice, not when you are already angry.
Not late yet? To prevent slow pay and measure days to pay, see broker payment delay, or brokers who pay late to rank your brokers.
In short
- First prove the invoice is clean: signed POD, matching rate con, correct broker and remit-to.
- Use fixed dates. A written demand letter on a set day beats a dozen phone calls.
- A broker bond claim is a later rung, and the $75,000 pool is shared among all claimants (49 CFR 387.307).
- Your rate con and contract decide your remedies. A lawyer should read anything large.
Seven rungs, in order
Each rung has a trigger and a record. The record matters because a later rung, a bond claim or a complaint, asks you to show the earlier ones.
The day counts in the picture are a suggested house policy with invented numbers. Your rate con payment terms replace them. Counts start from the due date, not the delivery date.
Keep the ladder in one note on the invoice. One line per rung with the date and who you spoke to.
What to do at each rung
Prove the invoice is clean
Open the invoice. Does it match the rate con line for line? Is the POD signed and readable? Was it sent to the billing address on the rate con? Fix any gap first. See POD and BOL errors.
Remind on the due date
Send the invoice again with the POD and rate con attached. Ask for the remit date. Do not argue yet.
Ask for a date in writing
A phone promise is not a record. Write: "Confirming payment on [date] by [method]". Silence after a stated date is itself a fact for the next rung.
Send the demand letter
One page: invoice, amount, due date, attachments, a deadline and what you do next. Send by email and by tracked mail if you have an address. Template below.
Tell the factor, ask the surety for forms
If you factor, tell your factor now. Their recourse terms may start a clock. Look up the broker bond on the public record and request the surety’s claim forms. verify
File the FMCSA complaint
FMCSA takes complaints through its National Consumer Complaint Database. A complaint is a lever and a record, not a payment. verify
Decide on counsel
Compare the amount with the cost. A lawyer can tell you about small claims limits in your state, prompt-pay terms in your contract and whether the broker is solvent.
What each step can and cannot do
| Tool | What it can do | What it cannot do |
|---|---|---|
| Demand letter | Sets a deadline, creates a dated record | Force payment |
| Bond claim | Reach a pooled $75,000 fund if the broker fails to pay | Guarantee full payment; claims share the pool |
| FMCSA complaint | Put the broker on the regulator’s radar | Collect your invoice |
| Factor notice | Start the factor’s own collection and recourse clock | Remove your recourse liability |
| Small claims or counsel | Produce a judgment in your name | Be fast, or cheap on small amounts |
Source: 49 CFR 387.307, eCFR, read 2026-10-09 (https://www.ecfr.gov/current/title-49/part-387/section-387.307). Rows 2 to 5 describe general purpose, not legal outcomes. Not legal advice.
Worked example EXAMPLE VALUES
Invented numbers. Invoice 4417 for $2,850 was due on 1 March. The load was delivered 1 February under net 30 terms.
- 1 March: reminder sent with POD and rate con.
- 8 March: firm email asks for a date. Reply: "processing".
- 15 March: demand letter, deadline 22 March. No reply.
- 31 March: factor told; surety claim forms requested.
The carrier now holds four dated records. The carrier can now show every step it took.
Demand letter to copy
Keep it factual. State the deadline. Do not threaten what you will not do.
What we would check in your audit
- Every invoice past its rate con terms, grouped by broker, with the rung each has reached.
- Whether the invoice itself had a gap (missing POD, wrong amount) that gave the broker a reason to hold it.
- Accessorials billed late that the broker is using as a reason to hold the whole invoice.
- Where a short pay sits in the ladder and what it is worth.
Questions
Should I stop hauling for them?
Often yes after the demand letter, but weigh the outstanding amount and the pending loads. Do not deliver more freight into an unpaid balance without written payment terms.
Can I contact the shipper?
Possibly, but read your rate con and any confidentiality clause first. A lawyer can tell you whether it helps or hurts your claim.
Does FMCSA collect for me?
No. A complaint creates a record. It does not recover your invoice.
What about interest or late fees?
Only if your contract says so. Check the rate con. verify
Related: bond claim, broker vetting, broker payment delay, short pay and chargebacks, POD and BOL errors, invoice aging, brokers who pay late, double brokering, broker days-to-pay calculator, bad broker cost calculator.
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