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Common Transportation Collection Issues

Common Transportation Collection Issues

Imagine a modern world with no transportation. You may have seen what happened when transportation issues abounded throughout the 2020 crisis. Necessary goods struggled to get to stores, people could not purchase what wasn’t there, and worry was aplenty. While it was challenging for some time, people got the chance to see what would happen if there were severe transportation problems.

These examples are the issues that we saw from the outside. What happens on the inside that everyday people don’t see? These common transportation collection issues are some of the problems that transportation businesses face regularly. When you find yourself entering the transportation industry, preparation for the following topics can be beneficial.

Competition

A little competition is not always a bad thing. However, small trucking companies in competition with nationwide organizations typically fail. 2020 saw thousands of trucking organizations shut their doors. A year prior, in 2019, that number was at a fraction – just one thousand – but devastating to those small businesses all the same.
The biggest problem with competition is that larger companies are better equipped to deal with late payments in exchange for continued business. However, smaller trucking companies typically cannot survive without charge and struggle to maintain customer relationships in seeking compensation.

Truthful (or not) Excuses

It doesn’t matter if excuses for non-payment are honest. Both legitimate and non-honest reasons tend to bring about non-payment. Deciphering excuses is not an essential part of the transportation business. What is critical is the ability to obtain payment positively. Doing so requires a particular skill that can be difficult to recruit for.

Minimal Office Employees

A transportation business may have a dozen drivers but only a single person covering the office. With so many tasks on the to-do list, obtaining payment, steering quality communication, and running the marketing portion of the office work can be too much. When an organization employs too few people to run the office, things can easily fall through the cracks.

Closed Businesses

There are some situations in which a business will never be able to pay its invoice. The organization may have closed down or filed for bankruptcy, which makes obtaining the payment owed complicated. Possibly the best way to prevent situations such as these is to be fast in getting what’s due. Waiting until an invoice is several months late could result in non-payment.

Cash Flow Issues

General cash flow concerns are typically piled on with late or non-payments. Transportation companies have a lot of outbound expenses – fuel, employees, an office to rent, etc. When invoices go unpaid, the company and its employees suffer. Cash flow problems are a common theme in the world of transportation. Quality management is needed to stop cash flow issues from causing business failure.

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 you have unpaid freight invoices and are not sure what to do next, call 662-892-8591 to speak with one of AWA’s client specialists today or Place a Direct Claim Today

For more information on our agency practices and methods, view our AWA Collection Process Page.

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