Slow Pay for Fast Deliveries

touched on this in a post in here a while back on a client he had that went bankrupt. I want to expand in here on broker carrier contracts as they relate to payment.

We have a few clients on the carrier side who are larger brokerages. Why is it that they pay slower than the smaller guys? Are they entitled?

Opinion: I signed your broker carrier agreement where you asked for NET 30. I gave you the NET 30. We have invoices open now from before XMAS of last year.

My accounting department told you 3 weeks ago payment must be made on these past due invoices or your items scheduled for delivery by us will not be delivered.

Well that time came, we did not get payment.

We did not perform the deliveries!

Now the broker is pissed at us. We did not provide delivery of scheduled appointment and are in breach of contract!

Wait a minute you the broker breached the contract over a month ago! Your contract says payment terms NET 30. It’s 70 days later and no payment. That’s breach of contract! Hello.

As a carrier we feel we are very accommodating to our broker “partners”

Is it really a “partnership” when the broker doesn’t care to pay you on time?

Should we have delivered their shipments or are we right to hold them accountable?

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