Truck Dispatcher Freight Billing, Invoicing, and Collections

Question 1

After delivering a load, what documents must the carrier or dispatcher typically submit to the broker or shipper to initiate payment?

Accepted Answer

An invoice together with the signed Proof of Delivery (POD) and/or Bill of Lading

Answer

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?

Accepted Answer

A financial service where a third party purchases the carrier's unpaid invoices at a discount in exchange for immediate cash

Answer

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?

Accepted Answer

The carrier will receive payment 30 days after submitting a complete invoice with required documentation

Answer

'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?

Accepted Answer

Detention charge

Answer

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?

Accepted Answer

Send a courtesy reminder, then a formal written demand, then consider a collections agency or an FMCSA bond claim

Answer

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.

Truck Dispatcher Practice Test

Truck Dispatcher Practice Test

Truck Dispatcher Freight Billing, Invoicing, and Collections