For trucking company owners, managing cash flow is always a top priority. One important factor that can impact timely payments is the rate confirmation (RateCon). In this post, we'll explore why submitting RateCons quickly is critical to getting paid on time.
Verify broker creditworthiness
Although we recommend that carriers check that a broker is approved before they book a load, factoring companies will further verify that a broker is approved when they receive the RateCon. This is especially relevant in a soft market where a broker's financial situation can quickly change. If a factoring company doesn't get paid, they may initiate a clawback to the carrier, which means the carrier must reimburse the factoring company for revenue that they were unable to collect.
Organize load documents‚ for the carrier and the factoring company
Submitting the RateCon to TrueNorth allows carriers to view all load documents and details in the MyLoads section of the app. TrueNorth also sends the RateCon directly to the factoring company, allowing them to build the load in their system and issue payment quickly once they receive the proof of delivery (POD).
Simplify Proof of Delivery (POD) submission
After completing a delivery, owners and drivers can submit their POD directly from the TrueNorth app. To do this, the RateCon must first be on file. Simply click "Submit a POD" from the Load in their MyLoads tab to open a camera scanning feature and snap a photo of their POD. TrueNorth then sends the RateCon, POD, and all load details to the carrier's factoring company. If the carrier doesn't use a factoring company, TrueNorth sends all load documents and an invoice to the broker on behalf of the carrier.
To ensure prompt payment, carriers can follow these two simple steps:
- Submit the RateCon to TrueNorth as soon as a load is booked
- Submit the POD from the TrueNorth app as soon as a load is delivered
That's it! TrueNorth takes care of the rest.
Interested in signing up for TrueNorth? Click here to get started.
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