Invoicing 101: Create A Contract!
If you are looking to explore new ways to reduce late payment & non-payment from clients in the transportation industry, an excellent first start is to create a contract for all future shipping or transportation contracts that will ensure you get paid upon completion of the job, with contingencies in place to help reduce the odds that a client pays late or not at all!
Clear & Defined Late Payment Penalties
If you are looking to implement incentives that may increase early/on-time payments, it is wise to include a clear outline of the process for late payments. This can help provide urgency at the time of contract signing, as well as provide a detailed plan of what happens if a client decides to pay later. This can drastically reduce late payments as this form of penalizing will increase the cost of the initial balance as well as highlight additional repercussions, such as contacting freight collection specialists if the debt extends beyond the specified date!
3 of the Most Common Late Payment Incentives
- A late fee for payments received after the due date (with time for the mail to catch up)
- Accrued Penalties: Start (reasonable) interest rates for payments more than 30 days late
- Attorney or collection agency fees after X days late
Follow up With Your Client Prior to Invoice Due Date
While it may not be the easiest process to reach out to a client and collect on an invoice, periodically reaching out via phone or email can be a great way to ensure that they are aware of the approaching bill, without being pushy or aggressive when it comes to collecting. By sending an email or phone reminder, you are creating a paper trail that can also be documented should a shipper or broker decide to default on a payment.
Why Choose AWA for Your Unpaid Freight 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. Learn more about our thorough collection process, and how we go the distance when it comes to collecting your unpaid transportation invoices!
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!
