Truck Dispatcher Freight Billing, Invoicing, and Collections — Questions and Answers
Question 1: After delivering a load, what documents must the carrier or dispatcher typically submit to the broker or shipper to initiate payment?
- The original rate confirmation only
- An invoice together with the signed Proof of Delivery (POD) and/or Bill of Lading (Correct answer)
- A CSA score report and carrier safety rating
- The driver's hours-of-service log only
Correct answer: An invoice together with the signed Proof of Delivery (POD) and/or Bill of Lading
Payment processing requires an invoice paired with supporting delivery documentation — primarily the signed POD (confirming delivery was completed) and often the original BOL. Incomplete documentation is the leading cause of delayed payment in trucking.
Question 2: What is freight factoring?
- A method for calculating optimal pallet counts per trailer load
- A financial service where a third party purchases the carrier's unpaid invoices at a discount in exchange for immediate cash (Correct answer)
- A cargo insurance policy type specific to temperature-controlled freight
- A load board feature that matches available freight to available capacity
Correct answer: A financial service where a third party purchases the carrier's unpaid invoices at a discount in exchange for immediate cash
Freight factoring allows carriers to sell outstanding invoices to a factoring company at a discount (typically 2–5%) in exchange for immediate payment rather than waiting 30–60 days on standard broker payment terms. It solves cash-flow gaps created by the mismatch between fuel/operating costs (immediate) and invoice payment (delayed).
Question 3: A broker's payment terms state 'Net 30.' What does this mean for the carrier?
- Payment is due within 30 minutes of delivery confirmation
- The carrier will receive payment 30 days after submitting a complete invoice with required documentation (Correct answer)
- The carrier must pay the broker a 30-day lane reservation fee
- The load must be delivered within 30 days of the original pickup date
Correct answer: The carrier will receive payment 30 days after submitting a complete invoice with required documentation
'Net 30' means the broker is obligated to pay the full invoice amount within 30 days of receiving a complete invoice with required backup documentation (signed POD, BOL). Quick Pay programs offer faster payment — typically 1–3 days — for a fee of 1.5–3% of the invoice.
Question 4: A driver was held at a shipper's facility for 4 hours beyond the agreed free time of 2 hours. Which accessorial charge should appear on the carrier's invoice to the broker?
- Fuel surcharge
- Detention charge (Correct answer)
- Layover pay
- Deadhead fee
Correct answer: Detention charge
Detention charges compensate a driver for time spent waiting at a shipper or receiver beyond the agreed free time (commonly 2 hours). The rate and free time allowance should be defined in the rate confirmation to prevent disputes. In this case, 2 hours of billable detention would be invoiced.
Question 5: An invoice to a broker is 45 days past due with no payment. What is the correct escalation sequence?
- File a lawsuit immediately without any prior contact
- Send a courtesy reminder, then a formal written demand, then consider a collections agency or an FMCSA bond claim (Correct answer)
- Accept the loss and write it off — brokers cannot be compelled to pay
- Report the broker only to the Better Business Bureau and wait
Correct answer: Send a courtesy reminder, then a formal written demand, then consider a collections agency or an FMCSA bond claim
Collections follow a standard escalation: courtesy reminder → formal written demand with a deadline → collections agency or legal action. For licensed brokers, carriers can also file a claim against the broker's $75,000 surety bond (BMC-84) through FMCSA, which exists specifically to protect carriers from broker non-payment.
Question 6: What is a 'Quick Pay' program in freight billing, and what is its trade-off?
- A GPS tool that automatically confirms delivery and triggers invoice generation — no trade-off
- A broker program that pays carriers within 1–3 days instead of Net 30, in exchange for a percentage fee deducted from the invoice (Correct answer)
- A factoring company service that only applies to loads over $10,000
- A load board feature that posts freight in under one minute — no fee applies
Correct answer: A broker program that pays carriers within 1–3 days instead of Net 30, in exchange for a percentage fee deducted from the invoice
Quick Pay programs allow carriers to receive payment in 1–3 business days rather than waiting 30–60 days under standard terms. The trade-off is a fee of roughly 1.5–3% deducted from the invoice amount. It improves cash flow but reduces net revenue per load — carriers must decide whether the liquidity benefit outweighs the cost.
Truck Dispatcher Freight Billing, Invoicing, and Collections
After delivering a load, what documents must the carrier or dispatcher typically submit to the broker or shipper to initiate payment?