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October 8, 2024
How to avoid Factoring issues
How to Avoid Issues with your Factoring?
Hello, my cool truckers! 🙂
Lately, we’ve noticed some issues with factoring payments. This usually happens because of mistakes with important paperwork like the Bill of Lading (BOL) and Proof of Delivery (POD). These documents are super important to make sure you get paid on time.
The main issue is that even with missing or bad paperwork, your factoring company will still pay you for the load today. But after 60 days, when they try to get paid by the brokers, problems can happen. The brokers will ask factoring for all missing papers, and the factoring company will come to you for them. If you don’t provide the papers, the broker won’t pay the factoring company. And guess what? The factoring company will charge you back. In the end, you basically worked for free on that load.
Let’s talk about how you need to handle your BOL and POD documents to avoid mentioned payment problems.
What Are BOL and POD Documents?
The Bill of Lading (BOL) is a document that shows what you’re delivering and that you’ve picked up the load. The Proof of Delivery (POD) shows that you’ve delivered the load. Factoring companies and brokers need these documents to pay you for your work.
If the documents are incomplete, missing, or unclear, you might not get paid right away—or even at all.
It’s so important to do everything correctly, to get paid on time.
Tips for Scanning and Taking Photos of Documents
When scanning or taking photos of your BOL and POD, it’s important to make sure they’re clear and easy to read. If the factoring company can’t read them, they can’t pay you.
Here are some tips:
- Use a good document scanner or camera app: These will help make sure the image is clear.
- Make sure the pages are flat and smooth: Don’t let the papers get folded or crumpled.
- Check that all the text and numbers are clear: Make sure everything is visible.
- Include all extra documents: Don’t forget to scan things like stickers or lumper receipts if they’re part of your delivery.
- Do not take blurry (out of focus) photos
- Include all BOL pages
By following these tips, you’ll greatly reduce the chance of any delays in getting paid.
If you are looking for a reliable partner for your truck dispatching needs, contact our cool dispatch team.
Don’t Forget to include All Pages
Sometimes, BOL and POD documents have more than one page. Even if a page seems unimportant, leaving it out could cause a problem with your payment. If a page is missing, the factoring company might delay or reject your payment. If they notice missing page. Sometimes they do not pay attention, and problems will occur in the future. Always check that you’ve included all pages. Cost you nothing to scan everything and send to your dispatcher or directly to factoring.
Keep Copies of Your Documents
It’s important to keep copies of your BOL and POD documents, even after you’ve sent them in. Factoring companies or brokers might ask for them again weeks or even months after the delivery.
Imagine losing out on payment simply because you threw away the paperwork. To avoid this, keep everything organized and save both physical and digital copies. Our Cool Dispatch team can do this for your business.
Tip: Set up a simple filing system where you can easily find your documents if needed.
Why All This Matters for Your Trucking Business
Regardless if you’re using a truck dispatch service or managing your own dispatch, keeping your paperwork organized is key to getting paid on time.
By making sure your BOL and POD documents are complete and readable, you’ll avoid any problems.
Following these simple steps will help make sure you get paid on time, every time. Just take a few minutes to scan your documents clearly, include all pages, and keep your copies safe.
If you need a reliable partner for your truck dispatching needs, contact our cool dispatch team.
Happy trucking, and stay safe out there!
