Like with 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, “as shippers and 3pls have become more strict in their auditing of freight invoices to catch errors, carriers and brokers are focusing on eliminating billing mistakes that cause delays in payments and rework that compresses their profit margins.” 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. Know What Your Driver's Charge and How
Managing shipping invoices and tracking payments hinges mainly on the type of setup your drivers are operating under with their freight brokerage partner. There are two primary payment options used in the industry today: per-mile or 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 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.
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 truck drivers 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.
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 drivers alike are looking for a fee-lite 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.
5 . Know the Credit Risk of Each Shipper and 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.
6 . Get Paid Faster From Shippers With Freight Factoring 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 for freight brokers can benefit significantly from innovative advancements and automated tools and processes becoming more common in today's shipping and transportation industry. These platforms and real-time tracking and invoice factoring tools can make freight invoice processing less of a hassle overall.
Streamline Freight Invoice Processing, Find Low-Risk Shippers Through ComFreight.
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. Shipping 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. To take advantage of the latest invoice services, be sure to sign up for ComFreight as a way to get loads and to maximize freight invoice income, even amid market volatility.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 HaulPay invoice tracking and management system today and see how easy freight broker invoice management can be!