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Dealing with the uncertainty of when a payment will arrive is a serious pain.
For small and large carriers alike, collecting pay for a delivered load can commonly take 30 to 60 days or more. In recent years, especially during the COVID pandemic, some of transporters’ clients across Europe have been exceptionally slow to make payments. In some cases severely delayed payments can extend beyond 90 days, and may violate local payment time laws.
In the meantime, business costs continue to stack up. Staff wages and truck maintenance costs need to be paid regularly. Additionally, rising fuel costs are increasing the financial pressure on carriers.
Simply put, keeping a trucking company moving requires a fair amount of working capital, and delays in collecting payments diminish the working capital that is available.
Delayed payments hurt business function and growth
Unfortunately for carrier operators, waiting one or two months for a payment after a load has been delivered is par for the course. These lengthy wait times are partly due to the time it takes to collect and process the required paperwork, and partly due to shippers simply being slow to pay.
Typically after a truckload has been delivered at the drop-off location, the truck driver needs to produce a signed proof of delivery (POD). PODs then need to be collected by the carrier operator and sent to the shipper to confirm that their load has been delivered before an invoice can be processed and a payment made. The payment itself can also take days or even weeks to be made, depending on the shipper. Some shippers have earned reputations for being extremely slow to make payments even after all the required paperwork has been completed.
The process of collecting and submitting PODs and invoices can easily amount to a month’s time before a carrier can expect payment, and if any of these steps are stalled for any reason then the timeline can be extended significantly.
sennder guarantees quick and on-time payments
At sennder, we work closely with our partnered carriers, so we understand the frustration of waiting for payments. We are aware how unnecessary delays can cause a lot of burdens and worries for carrier owner operators.
That’s why we’ve developed a couple solutions to relieve the pain of late payments.
First, sennder makes sure that our own payments to carriers arrive on time. We guarantee that our standard payments will arrive within 30 days after a POD has been accepted. Furthermore, we have a finance team that is available to assist with any unique situations or payment related questions that may arise.
Second, we have tools to help simplify and expedite the payment process. Carriers and their truck drivers who work with sennder can upload POD documents quickly and easily with any computer, or even a smartphone. This cuts out the days that it would usually take for a driver to bring their POD back to the office by hand.
Finally, with sennder you can choose fast payments, which are delivered within 3 days for a small fee. Fast payments are a unique option for sennder carriers, and are a great choice for companies who could use a little more working capital in the short term.
Fast payments with sennder are guaranteed to be paid within 3 business days after a POD has been accepted. The fee for fast payments is 3% of the payment value. There is no fee for regular payments with sennder.
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