How Do Truck Dispatchers Get Paid?
Today, we unravel the mystery behind the payment process for independent truck dispatchers. Let’s dig into one of the most frequently asked questions in the industry: “How do truck dispatchers get paid ?”
We will examine whether collecting payment from a freight broker is the standard practice or if having a factoring company is a better alternative. Plus, we’ll explore how independent dispatchers or online dispatching can still collect payment while working remotely.
Stay tuned to gain valuable insights on maximizing your earnings as a truck dispatcher.
Optimal Solution For Getting Paid As An Independent Truck Dispatcher
Discover the optimal solution for getting paid as an independent truck dispatcher without taking any financial risks.
First, let’s address whether you should collect money from a freight broker. The answer is no. Even though you’re assisting a trucking company, remember you’re not a legal party to the transportation transaction between the broker and carrier.
ALT TEXT: Earnings of truck dispatchers
You’re just helping with the process. Some dispatch companies act as factoring companies and fund transactions for clients, but this is complicated and carries unnecessary financial risks. Let’s explore a better way to get paid for your valuable services.
Are you an independent truck dispatcher wondering if you need a factoring company to get paid? The answer is no, but some factoring companies offer dispatchers partnership programs.
Here’s how it works: you refer your client, the truck dispatching company, to the factoring company, and once they start factoring their invoices, you receive your percentage directly from the factoring company.
If you’re looking for a worry-free way to ensure you get paid for your services, billing your clients directly is simple and hassle-free. You won’t have to rely on a factoring company, which may not work if your client doesn’t use one or is already partnered with a different one.
Switching factoring companies can also be troublesome. Instead, take a practical approach and bill your clients directly, similar to how your accountant charges for tax preparation. This method is effective and ensures you receive payment for your work.
How Do Trucking Dispatchers Get Paid Independently?
Learnmore about how do trucking dispatchers get paid independently. As a dispatcher, should you collect money from a freight broker, use a factoring company, or bill your clients directly? Let’s dive into the best solution.
Refrain from collecting money from a freight broker because you are just helping one of the parties and should not be involved in managing or paying out any money. Factoring companies offer partnership programs, but it isn’t easy to implement, especially with multiple clients. Instead, bill or charge your clients directly for the services provided.
To collect a payment, skip traditional invoicing and send a digital invoice instead. Your client can easily pay through the link provided, but there’s a risk of not receiving payment while still providing the service.
Check out 5 Ways Traditional Invoicing is Holding Back Mid Market.
A better solution is to have your clients sign a credit card authorization form and charge them every week using Virtual Terminal. This way, you remain in control of your receivables, and your clients don’t have to do anything extra. Say goodbye to the uncertainty of payment collection with this optimal solution for independent truck dispatchers’ payment methods.
Attention Dispatchers
At Boss Dispatch Academy, our support team can assist you in setting up your receivables based on your situation. However, as an independent truck dispatcher, you must avoid involving yourself in the financial flow between freight brokers and trucking companies. The charge for the dispatching service you’ve provided – no more, no less. It is key to your success.
