LIKE ANY BUSINESS struggling to stay afloat during these times of market uncertainty, cash flow is critical. This is especially true for companies operating in the shipping and transportation industry, including freight brokers. To survive continued recovery and market pressures, shipping companies must quickly turn orders into cash by processing shipping invoices as swiftly and accurately as possible. The slightest error or delay in freight invoice processing and payment can lead to massive financial disruption. Commercial Carrier Journal pointed out,
Most transportation management systems have options to set custom alerts and can flag specific billing requirements for each customer or load type. They can also help to streamline order entry processes and improve the invoicing tracking and payment process. Freight brokers must simplify processing various invoices of shipment documents and maintain adequate cash flow. The following steps can help enhance freight invoice management across the entire supply chain network and help companies get paid for more loads.1
1. Know What Your Carriers Charge & How
Managing shipping invoices and tracking payments hinges mainly on the type of setup your drivers are operating under with their freight brokerage partner.1 There are three primary pricing method options used in the industry today: per-mile, “allin,” and hourly rate. With a per-mile payment process, a freight invoice is set up based on the mileage the driver racks up during delivery. With “all-in” this is typically represented with a flat linehaul rate that includes everything in one rate. With an hourly rate, drivers are paid a rate based on miles driven by other tasks related to the shipment. Both methods have pros and cons and can affect how a freight broker invoice needs to be set up and paid. There is more granular breakdown in many invoices that includes line items for fuel surcharge and other accessorial, and it helps to have an invoicing service that can account for all of these cases and take this hassle off of your plate.
2. Aggregate All Invoice Data Faster Through Digital Systems
Get the right invoice factoring for freight brokers set up in place early on to streamline the entire process. Pulling all invoice data from carriers is easier with a digital and cloud-based system. It is easier to upload and manage files, report invoices, share to shippers, and send all the information to the factoring systems, so transportation companies get paid. This streamlining is possible with an automated invoice shipment process and an aggregate freight invoice processing system. HaulPay actually enables you to have carriers and drivers upload their docs directly to your payment cloud for faster document review. You can also integrate your TMS, so that docs flow to HaulPay for real time invoicing, payments, and settlement as well. Cleaning up another big mess.
3. Don’t Get Lost in the Weeds of Endless Fees for Invoice Factoring for Brokers
Freight brokers should know their expenses for invoice of shipment management and their factoring costs for getting paid for any job they accept. Shippers and carriers alike are looking for a simple solution that provides them with the freight invoice services they need without costing them an excessive amount of fees. A good balance between profits for those managing freight broker invoices and shippers must be maintained and is the foundation of a mutually beneficial partnership.
4. Integrate Trucker Payments with Your Systems of Record to Initiate Payments ASAP
An essential piece of the freight broker invoice management puzzle is properly integrating multiple management systems and processes throughout the existing platform network. With the right collaborative platforms and dashboards in place and real-time data tracking and access, freight invoice processing becomes more accessible and much more simplified. Optimizing the invoice payment process and automating payment initiation can make it easier to track cash flow and invoice factoring for freight brokers from start to finish. This is easy with HaulPay and helps keep invoice transaction records and trail of updates current and matching to what payments are expected to go to carriers and what invoice amounts are expected to be paid by shippers.
100+ FREIGHT INTERMEDIARIES CAN’T BE WRONG
Over the years, Benesch has provided legal consultation and pragmatic business advice to well over 100 Transportation Brokers, Surface Freight Forwarders, Ocean Freight Forwarders, NVOCC’s, Air Freight Forwarders, Warehousemen, 3PLs, 4PLs, and other Freight Intermediaries of all kinds. They know that when it comes to corporate structuring, mergers and acquisitions, transportation and logistics contracts, best practices, regulatory challenges, insurance and risk management, freight loss and damage or freight charge disputes, catastrophic personal injuries, and independent contractor relationships — Benesch knows Intermediaries.
Counsel for the Road Aheads®
Benesch received the distinction of being named Transportation Law Firm of the Year by Best Lawyers®—Best Law Firms in 2022, 2020, 2017, 2016 and 2014. Only one law firm per practice area in the U.S. receives this recognition each year, making this award a particularly significant achievement.
5. Know the Credit Risk of Each Shipper & Prioritize Low-Risk Shippers
There is always a certain level of risk inherent with freight shipping, but reducing errors and the possibility of issues during invoice of shipment payment can help improve shipper relations. Knowing the credit risks of shippers and choosing those that are less likely to increase risks overall will make freight invoice management much more straightforward. Even complicated loads and more detailed freight invoices and payment schedules will benefit. With HaulPay you’ll be able to selectively factor invoices or take advances only when you want to and you’ll be shielded from the credit risk of those shippers when you do. Credit risk of your shippers is always available at your fingertips in our web app for Brokers.
6. Get Paid Faster From Shippers With Freight Payment Solutions Like HaulPay
Opting for online digital processes is the final option that can help speed up shipping invoice payments and streamline overall techniques. Invoice factoring and payments for freight brokers can benefit significantly from innovative advancements and automated tools and processes becoming more common in today’s shipping and transportation industry. Keep your back office running like a well-oiled machine and eliminate risk of errors and bottlenecks with a digital invoicing and payment solution like HaulPay. Decide if and when you want to factor, finance a payable to carrier, or just use the system as your invoicing service with full transparency and automation.
Streamline Freight Invoice Processing & Scale Your Brokerage Faster with HaulPay
Ultimately, the goal of improving invoice of shipment processing and payment is to maximize profits and maintain good cash flow, even amid uncertain markets and shifting customer demands. Freight invoices are a vital part of the carrier, broker, and shipper relationship and are just some of the many services where freight invoice management can assist. Improving routine freight invoice processes can help reduce fees and expenses while maximizing overall profit margins.
Maximizing income is vital to improving operational costs and freight invoice processing and avoiding costly delays and mistakes with bill payment tracking.
Keeping up with invoice billing and the payment ins and outs can be a challenge for even seasoned transportation companies and management teams. Partnering with industry experts familiar with invoice factoring for freight brokers and shippers can make a world of difference in both short- and long-term income. Get a demo of ComFreights HaulPay1 invoice tracking and management system today and see how easy freight broker invoice management can be!