In trucking and freight, unpaid or late freight invoices can screw up your cash flow and impact your operations. While it is normally unavoidable to bring in a freight collection agency, there are some important steps you must take before fully committing. Proper documentation and communication will improve your chances of receiving payment and protect your rights. Therefore, in this article, we’ll go over the best steps to take before sending a freight invoice to collections.
Re-read the Freight Agreement
Firstly, you should start your process by re-reading the signed rate confirmation, broker-carrier agreement, or freight contract. Make sure that the payment terms were clearly outlined and that all accessorial charges (detention, layovers, fuel surcharges) were agreed to in writing. This is important because if there is no signed record or if the contract is unclear, the debtor may try to dispute the charge. A well-documented rate confirmation makes you a more solid party in the freight collections cycle. This can help to ensure you get the compensation your company deserves.
Confirm Delivery with Documentation
Before sending a freight invoice to collections, it’s always important to have proper proof of delivery alongside official documentation. Ensure that you have the following before sending a freight invoice to collections:
- A signed proof of delivery (POD)
- The bill of lading (BOL)
- Any emails or messages indicating successful delivery
If possible, include GPS tracking data or ELD records to verify on–time and in–good-condition delivery of the shipment. These are typically requested by a freight debt collection agency to verify your claims even further.
Send a Payment Reminder
Sending a payment reminder can be all it takes to finally receive the payment you’ve been waiting for. Therefore, to be even clearer and to help your relationship, send a clear and professional email. This email should contain multiple important sections, such as:
- A copy of the unpaid invoice
- The due date
- A notice that payment is late
- A deadline for payment
For these emails, it’s also necessary to utilize and create urgent subject lines to grab the attention of your customer or partner. You’d want them to understand that this message i very important and needs immediate attention.
Make an Attempt to Communicate
Before turning to a freight collections company, make one final phone call or email. Ask if there’s a reason the invoice hasn’t been paid, because sometimes it’s due to a billing issue or missing paperwork. This extra notice helps show that you’ve tried to resolve the situation professionally and can help save a business relationship if the delay wasn’t intentional.
Call a Trucking Collections Agency
If the payment is still not on the way, then it‘s time to call in a trucking collections agency. A company like Alexander Winston & Associates is perfectly equipped for all your needs. They’ll help you every step of the way to get the payments you deserve. So start gathering up all of your documentation and give them a call to get started today!