New freight brokers, or established freight brokers with a small cash flow, need to establish a policy for making advance payments. Should advances be made? If so, how much and to whom?
Managing cash is a required skill that freight brokers need to master. If advance payments are made without the broker knowing when to expect payment from the shipper, a "perfect storm" is in the making.
The most important part of this is knowing when you can expect payment and any broker who starts business with a shipper without know this will go down in this perfect storm.
We cover these issues IN DETAIL in our training: cash receipts and payment alternatives.
If you need to boost your cushion of cash, we have a new financing source for our clients.
Lastly, you might want to check out some 2-3 minute audio comments that I've prepared. Go here: http://www.atexfreightbrokertraining.com/podcastsrecordings.shtml
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