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Debt Collection for Logistics Companies
Logistics services are necessary for practically any industry that requires the movement of goods, personnel, or equipment. Without logistics companies the vast growth the world economy has realized from the globalization of markets would not be possible. Despite their importance, many logistics companies face a huge challenge in collecting payment on various types of invoices. Here are the top 3 invoices that logistics companies find difficult to collect payments.
When a logistics company is assigned to collect a shipment, there is an expectation that the shipment will be ready at the scheduled pick up time. Logistics companies are cost heavy and time lost due to delays is money lost. Most freight carriers are entitled to charge demurrage charges for the dead time they experience when a load is not prepared or there is an issue with customs that causes a delay. Demurrage charges differ from one country to another. The cost is calculated by deducting the free days from the total number of days that the goods have been at the terminal. The extra number of days is then typically multiplied by the per diem cost that is established when the job is brokered or there is a flat hourly fee that is agreed to beforehand.
Causes of Demurrage Charges
- Incorrect document presentation
- Slow receipt process
- Lost shipping papers
- Cargo inspection delays
- Cargo Improperly packaged
- Cargo not ready at the scheduled pickup
Payment for Seized or Delayed Imports
The shipping process entails a lot. If a client misses a step or fails to submit certain papers on time, it may lead to extra costs. Many times an importer will abandon a shipment or the shipment will be seized as a result of the improper documentation. When this happens, importers typically refuse to pay freight costs as the whole shipment ends up being a loss.
Causes for Seizures and Delayed Imports
- Mislabeled Goods
- Improperly Packaged Goods
- Improper Import Tax Certificates
- Unpaid Port fees or Import Taxes
Invoices for Late Deliveries
Logistics companies strive to be efficient in their services, but sometimes, the shipments face interference in the supply chain or transport services beyond their control. Some of the common challenges that may disrupt the supply chain adequacy include:
- Changed road routes
- Political instability
- Diplomatic conflicts between countries
- Weather delay
If the optimal efficiency of the process is interrupted, then the goods are delivered late. The companies incur higher costs when there are unexpected delays and have to invoice their clients.
Upon evaluation of the situation, there are clear facts that the logistics provider did not cause the delay. This is a confirmation that the clients should expedite the payment. In most cases, the clients may still delay payments despite the logistics companies providing vast evidence that they are not liable for the inconveniences that occurred during the shipping process.
Benefits of a Collection Agency for Logistic Companies
Logistics companies strive to provide services in an efficient manner for millions of businesses worldwide every year. Unfortunately, many find themselves having difficulty being paid once the services have been provided. Since logistics companies might lack the resources and expertise needed to claim overdue money, debt collection agencies help follow up on bad debts in exchange for a small commission of the recovered amount. Collection agencies provide advantages to logistics companies for a number of reasons.
- Expertise: They know how to handle the client, what to tell them, and the right approach for late payment requests.
- Fair Charges: Logistics debt collection companies will only charge a fee when they are successful in collecting.
- Persistence: Debt collectors are typically persistent and will do the legwork necessary to collect.
When faced with unpaid invoices, many logistics companies will turn to a 3rd party debt collection agency to assist with the recovery of their funds. Our agents are trained to utilize various tools when addressing these issues. The agents handling the claim will focus on identifying the cause of the debt, explore remedies to cure the problems, and when appropriate, use the proper leverage to incentivize the debtor into resolving the matter. Unlike other agencies that use cookie-cutter demand letters and scripted agents often in overseas call centers, our agents thoroughly investigate the claims to ensure that no stone is left unturned in securing payment. When a company still refuses to address the obligation, we have a network of collection attorneys that will not only dispute the claim, but collect through garnishments, liquidations, and other court remedies that force a recovery.
In addition to recovering the debt, our agents are also versed in business etiquette and conduct to ensure that our clients are being represented professionally and that their customers are being dealt with respectfully. In times where anyone can write a yelp or google review, it is vital that logistics companies are represented by a collection agency who conducts business professionally.
If you are in the logistics sector and faced with the problem of collecting on a delinquent debt, contact our office to speak with a specialist to discuss your collection needs. Unlike other companies that will simply provide a standard quotation and a slick sales pitch, our intake specialists will consult with you to better understand the challenges that you are facing and devise a plan and pricing option that will serve your needs. The advertising sector is highly competitive, and allowing our expertise to aid you in the recovery of your past due accounts will not only increase recovery rates, but provide you with more time to devote to the growth your business.