Payment
I'm in a good mood today!!
May I suggest, the thought of actually paying your bills on time.
If this would be the trend , many factoring agents would be out of business.
With the speed of electronic information, there is no reason for payment not to be in hand in 30 days. All parties generally know when the freight has been delivered, enough people follow up on deliveries at the brokers offices, and a day late is already a drama as it should be.
Payment is then 30 days from the delivery.
Most businesses can hold out for 30 days, it is the 45 to 60 days that hurts.
I have noticed, that lately quite a few brokers and carriers have jumped onto the quick pay bandwagon.
Again, quick pay has been around with Landstar, CH and other large US concerns for a long time. Quick pay is usually 1.5% and available in 48hrs.
What irritates us is the predominantly Ontario based brokers that offer said quick pay , although for 5%.
These same brokers will then pay your bill stated @ 30 days in 45 days plus snail mail.
What is interesting is why , these pariah's stop @ 5%. Could it be that the civil code does not allow an interest rate over 60% per annum, and is thus referred to as loan sharking.