Payment terms for O/Ds

UK PROFESSIONAL DRIVERS FORUMS OWNER AND FLEET OPERATORS FORUM (INTERACTIVE)
1

what’s the norm now?

Still hearing of subbies running on payment terms of 30 or 45 days EOM so in effect running for 60 / 75 days before payment and then you only get paid for 30/45 days.

You are in effect lending the company you are subbying to a few grand. This is some serious cash if a forwarder / company has 20 + subbies on its books and risk ever seeing your money.

If you want early payment, you are charged a % , on top of the forwarder taking their cut. Win Win for them, lose , lose for the subby.

If I asked a subby to lend me 10k , then pay him back 5k the following month and then ask to lend another 5 k on top of what I already owe and keep doing this month in month out, I am sure you would be having some serious words!

Its madness!

I don’t know how or why Subbies do it?

2

I’m on “thirty days end of month” terms, that’s about the best arrangement for a subbie IMO.

Any quicker and an already modest rate is reduced by 5%, any longer and it’s likely that your customer has cash-flow problems.

What terms are you on?