This article highlights 20 real-world issues motor carriers can encounter when collecting revenue from freight brokers and some tips on addressing them.

1. Missing Signatures on BOLs

Brokers may reject documents lacking required signatures. This can be particularly challenging if specific shippers have shifted to digital practices while the freight broker managing the load requires signatures from contracted motor carriers. 

Clarifying signature requirements upfront to help avoid rejections. When possible, get written confirmation from the shipper and/or broker if no signatures are required.

2. Signatures in the Wrong Spot on BOLs

Another signature issue to be aware of is the location of the signature on the document. Some brokers reject documents if signatures aren’t in designated boxes or dotted lines. 

Ensure signatures are placed precisely where required to prevent unnecessary delays. Carriers can specifically call out or highlight in a different color the places where signatures are required.

3. Missing Lumper Reimbursement

Lumpers can confuse payment processes. Most loads that have a lumper will require a lumper receipt to be submitted as part of the load document submission. However, most lumper receipts don’t designate which party made the payment, which means whether or not to reimburse the carrier is entirely up to the broker. 

Carriers should always attach lumper receipts and ideally provide confirmation of who made the payment to avoid unnecessary deductions.

4. Payment to the Wrong Carrier

A quick search on FMCSA Safer Web shows that many trucking companies share similar names and some names are exactly the same except the businesses are independent businesses in different states or regions. Therefore, on occasion, payments can get issued to a different carrier with a similar name. 

To prevent this, ensure the business name matches FMCSA records exactly and clearly display the carrier’s MC and DOT numbers on invoices and relevant documents.

5. Cargo Claims Halt Payments

If there’s an active cargo claim, brokers typically withhold payment until the issue is resolved. Sometimes all loads associated with the carrier are affected which can be a large sum of money.

Carriers should aim to stay in communication with the insurer to expedite the claim resolution. In some scenarios, paying out of pocket may be the better option. When working with your insurer, review your policy, deductions, and limits to determine the best course of action.

6. Disappearing Loadboard Listings

Did you know that loads can disappear from brokers’ systems? This may seem impossible, but loads that have been delivered can appear to be missing from brokers’ electronic records due to system bugs or often loads being assigned new load numbers. 

Maintaining an independent record of documents on the load can help to resolve discrepancies. In particular, the original documents like the BOL can have identifying information to help find the original load despite being assigned a new internal load number.

7. Notice of Assignment Missing

Factoring arrangements require a notice of assignment filed with the broker for payments to be issued to the new factoring company as opposed to the carrier. Without the notice of assignment on file, payments might go to the carrier instead of the factoring company, or even a previous factoring company, further complicating payment flows.

Ensure brokers you work with receive updated information on your factoring company if you’re using one. Additionally, send in a notice of assignment with invoicing to ensure the payment team receives the document.

8. Payments Sent to the Wrong Factoring Company

If a motor carrier is in the process of switching factoring companies, brokers may send payments to the previous factoring company as opposed to the new factoring company. 

To avoid this, communicate changes promptly and ensure notices of assignments are updated. Additionally, brokers may need a notice of release from the previous factoring company in addition to a new notice of assignment in order to issue payment. Although this can cause payment delays, the practice is meant to help prevent fraud.

9. Factoring Company Not Set Up

Some brokers only issue payment with factoring companies set up on their system. If your factoring company doesn’t already have a relationship with the broker, payments can be delayed or withheld. This is also true when a factoring company chooses not to work with specific brokers.

Check with your factoring company which brokers are approved for factoring before hauling a load to ensure the motor carrier receives timely payment.

10. Double Payments: Too Good to Be True

Occasionally, brokers issue duplicate payments by mistake. While tempting to keep, they’ll request the funds back later. 

Verify all payments to avoid repayment complications. Additionally, issuing the payment back to the broker may come with a transaction fee, so confirm with the broker who is responsible for that fee. 

11. Double Brokering

On the opposite end of double payments is double brokering, which can leave carriers unpaid for completed work. Motor carriers can protect their businesses by vetting brokers before taking on a load. As a backup plan, carriers should have a protocol for filing timely claims against broker bonds.

12. Snail Mail Invoices Only

Although it’s the 21st century, some brokers still require paper invoices mailed via postal service to issue payment. Electronic submissions may be rejected. Check the broker’s invoicing requirements to avoid payment delays or deductions for not following load instructions.

Remember RCs are considered contracts, and the terms and conditions for invoicing are typically outlined in each load’s rate contract or reference the overarching agreement that outlines requirements.

13. One PDF Per Load Rule

Some brokers are specific about paper versus digital, but we have worked with brokers who are specific about the digital format of files. Certain brokers require all documents (invoice, BOL, POD, RC) consolidated into a single PDF in order to issue payment. Payments can be withheld or delayed until the carrier complies. Adhering to this format can streamline processing and prevent rejections.

14. Transflo-Exclusive Submissions

Many brokers use Transflo for documentation, and some big names only use Transflo. If you’re not set up with this platform, your submission could be delayed. Download the Transflo app and familiarize yourself with its features. Transflo also offers an express version that allows you to scan documents at certain truck stop locations.

15. CH Robinson’s T-Codes

When working as a contract carrier with C.H. Robinson, carriers are assigned a unique identifier called a t-code. This helps C.H. Robinson identify carriers and prevent errors like mixing up carriers with similar names. Although t-codes help ensure accuracy, they are an additional requirement for carriers to follow. Forgetting the carrier’s t-code on required documents can delay payment. Always keep track of these codes and include them in your load document submissions.

16. J.B. Hunt’s Vendor Form Requirement

J.B. Hunt carriers usually have to complete a vendor form (often a PDF) to get set up for payment. This requirement isn’t always communicated upfront during the broker carrier setup process, so be proactive in asking for payment setup forms when onboarding. Because of J.B. Hunt’s size the compliance department that handles the carrier setup process may not be actively in communication with the payments department.

17. Unauthorized Carriers Denied Payment

Typically a broker only contracts out loads to approved contracted carriers. However, if there’s a hot spot load that needs to be promptly moved, there can be times when the carrier hasn’t been fully approve but has been assigned by a broker. If a load is assigned to a carrier not authorized by a broker’s compliance team or specific shipper requirements, payment may be withheld at the time of payment even if the work was completed. 

Ensure your credentials are fully vetted before accepting a load. Additionally, carriers can aim to request fuel advances from a broker which helps to mitigate the risk the carrier is taking on on behalf of a broker in case something happens with payment, such as this scenario.

18. Wrong Carrier on Rate Confirmation

If the rate confirmation lists an incorrect carrier, payment can be delayed or entirely denied. Legally, the broker can only issue payment to the carrier listed on the rate contract. Before signing, verify that the MC and DOT numbers match your business.

19. Incorrect Payment Amounts

Another rare case but can occasionally happen is when someone types in the wrong amount! This can be an issue because a refund needs to be issued by the carrier and a new payment has to be issued by the broker. 

Resolving these errors requires refunds and re-issuances and can be costly. Make sure to be aware of any transaction fees so your carrier doesn't end up having to pay out of pocket to resolve a broker issue..

20. Unrecorded Rate Changes

Rate renegotiations can sometime happen over e-mail, text, and phone calls. Afterwards, the new rate isn’t always reflected on the rate confirmation. When payment time arrives, the payment department may not know about the rate change and issue an incorrect amount. Any changes to the rate must be reflected in the rate confirmation to protect both the broker and the carrier. If not, brokers may only issue payment for the original rate, complicating collections. Ensure all changes are documented and signed off.

Key Takeaways

• Documentation is Critical: Every broker has unique invoicing requirements, from T-Codes to consolidating PDFs. Familiarize yourself with these specifics for a smoother payment process.
• Communication is Key: Stay in constant contact with brokers, factoring companies, and drivers to avoid surprises.
• Be Proactive: Whether updating notices of assignment or clarifying rate changes, a proactive approach can prevent most payment delays.

What Can Carriers Do?

1. Keep Organized Records: Detailed records of invoices, BOLs, PODs, and rate confirmations can resolve disputes quickly.
2. Use Technology: Platforms like TrueNorth streamline document submission and reduce manual errors. TrueNorth also offers carrier a central source of truth in cases of disputes with brokers on document records.
3. Vet Brokers: Research brokers before hauling to minimize risks of fraud or double brokering as well as any idiosyncratic collections issues.
4. Establish Processes: A standardized process for handling payments, including reconciling discrepancies and filing claims, can save time and money.

By anticipating and preparing for these common AR collection issues, trucking motor carriers can protect their revenue streams and foster better relationships with brokers. Stay informed, stay organized, and take charge of your accounts receivable.