If you have run into a bad freight broker that does not pay you for the services that you have rendered, the best way to deal with the situation is to hire an experienced freight debt collector. Also called a trucking debt collector, they specialize in collecting what is owed from freight brokers, so you can get paid for your work.
However, many companies are hesitant to hire transportation collection agencies for several reasons, so you may not think of them as your first option. There is a fee for their services which does vary between companies, but you may want to consider that getting most of what is owed back is better than nothing at all if you do not have the time to pursue the matter yourself. There are good reasons why your freight debt recovery efforts should be handled by the experts.
First and foremost, a freight debt collector who specializes in freight broker collections is going to be your best chance to get your money returned. This is because the experienced freight debt collector in the freight industry knows the ins-and-outs of the business and has the knowledge to use different methods to recover the debt itself. Just on experience alone, they understand what techniques work better so the debt is recovered faster compared to how many owners will try to resolve the situation.
It is the flexibility that the knowledge and experience provide which makes them the best choice to go after what is owed to you. This also means that how you are charged will be different, so you can find the best one for your needs. Do you want to hire a company that charges a flat fee or one that takes a commission from the recovery? Either way, you can use the program that best fits your situation.
It’s probably not surprising that those in debt pay faster when a freight debt collection agency is doing the work. You may even find agencies that offer programs which gets the payments to you at an even faster rate, so you can get most of your money back quickly. By working with your billing process, they will take over the effort to collect which not only frees up your time, but also helps get your money back to you. The faster recovery is one of the main reasons why using an experienced freight debt collection service should be hired for your needs.
For companies to do the debt collection themselves, you will have to negotiate the myriad of laws, rules, and regulations that govern freight debt collection. One false move and you can find yourself on the wrong end of a lawsuit by a savvy freight broker which puts you into more debt. This means that hiring a third-party firm that specializes in freight debt collections will abide by the law, minimize the chances of a lawsuit, and removes the legal risks you would face in collecting the debt by yourself.
The importance of documentation cannot be underestimated as it will be needed to sue the debtor if it comes to that. Your chances of winning the lawsuit are going to ride on whether there is proper documentation of your efforts to collect the debt. The court is going to weigh the evidence based on having proper documentation of which Transport collection agencies understand perfectly. Your attorney will be far better prepared having access to the documentation provided by the agency on your behalf.
You will even need the proper documentation to claim a tax deduction to the IRS, so having a proper transport collection agency means that everything that applies to the effort will be fully documented so you are protected.
Better Chances of Success
It really comes down to what method you choose provides the best chances to recover your debt. It’s not surprising that using a freight debt collection service provides the best, most proven means of recovering what is owed to you. Not only will you have the debt collected, but you will not have to spend time away from the important business of your company to have it done.
In the end, a freight debt collector provides the services you need at the right price. Remember to hire only experienced transportation collection agencies as they have the knowledge, experience, and skill set to maximize your chances of freight debt recovery. You’ll find that a freight or trucking debt collector may be the best move you can make in getting what is owed.