When it comes to payment, billing, and collecting an invoice, there are a variety of issues that might come up; this can be anything from failing to follow up, a company losing the invoice, or something as innocent as someone forgetting to make the payment. The situation can quickly become more diluted if a company is frequently delinquent on payments, a company went out of business, or that company has no intention of paying an invoice, to begin with.
While these situations all stem from a different source, it can be difficult to collect from a broker or shipper based on the relationship that you have, as well as if they are still in business. Read on for some in-depth details about why a client is not paying an invoice, and what you can do to get invoices on time.
Failing To Follow-up
Following up with the broker or shipper is sometimes necessary to ensure that you are collecting freight bills in a timely manner, this keeps cash flowing in and allows your business to grow and continue to operate. If you want to ensure freight invoices are paid on time, always follow up with your clients before an invoice becomes delinquent. This can be a hassle and seem pushy at times, but at the end of the day, it is your money, do what you need to do to collect!
Clients Who Mean Well
On any given day it is impossible to remember everything that needs to be done, and on some days, a bill forgets to get paid, accidents happen! If you have a broker or shipper who is regularly in good standing but misses a payment here and there, only to pay a week or two late, it can be beneficial to start tacking on interest rates that raise the invoice amount for each additional day the invoice is late.
Clients Who Are Frequently Delinquent
There is always that one client who seemingly happens to forget every time an invoice is due for payment. If you have a client who has a track record of delinquency, it can be beneficial to set up email reminders and call the client frequently to keep it on their radar. Using a similar tactic as the forgetful client (tacking on interest fees) is a great way to nudge your client to pay out.
Clients That Are No Longer In Business
If a broker or shipper is no longer in business, the situation can become tricky as collecting a debt is not as simple as directly calling the business owner for a check to clear their debt. Depending on if the company has filed for bankruptcy or is no longer operating as a business, contacting a lawyer or collection agency is normally the best route to not only separating you from the debtor, but increasing the likelihood that you will recover the delinquent payment.
Why Choose AWA for Your Transportation Collection Needs?
AWA operates on a contingency fee basis, meaning, if we cannot collect, you owe us nothing. If collection efforts are successful, our rates will be based on how old and how much the debt is, if there is a damage claim, and whether the debtor is in or out of business.
If you have unpaid freight invoices and aren’t sure what to do next, call 662-892-8591 to speak with one of AWA’s client specialists today!