Struggling with unpaid freight invoices? Learn step-by-step what to do when a shipper won’t pay and how to protect your trucking business.
One of the most frustrating challenges in the trucking industry is delivering freight on time, only to have the shipper delay or refuse payment. Whether you’re a small carrier, an owner-operator, or a new freight broker, unpaid freight bills can quickly create cash flow problems that threaten your entire business.
So, what should you do if a shipper doesn’t pay their freight bill? Let’s break it down step by step.
Why Do Shippers Refuse or Delay Payment?
Before jumping into solutions, it helps to understand why this happens:
- Paperwork errors (missing POD, mismatched invoice numbers).
- Deliberate stalling to extend their own cash flow.
- Financial problems or bankruptcy on the shipper’s side.
- Disputes over rates, delivery times, or cargo condition.
Regardless of the reason, you need a process in place to collect what you’re owed.
Step 1: Review the Contract and Rate Confirmation
Always start with the paperwork.
- Check payment terms: Net-30, Net-45, or Quick Pay?
- Verify documents: Ensure the Bill of Lading (BOL) and Proof of Delivery (POD) are signed.
- Spot errors: Even a small mistake can give shippers an excuse to delay.
Step 2: Send a Professional Payment Reminder
If the invoice is overdue, send a clear, professional reminder.
- Include invoice number, load details, and the original due date.
- Stay polite but firm.
- Keep all communication documented.
Example:
“This is a reminder that invoice #12345 for load ABC, delivered on [date], is now [X] days past due. Please confirm the status of this payment.”
Step 3: Call the Accounts Payable Department
A lot of unpaid freight invoices are simply stuck in processing.
- Call the accounting team directly.
- Ask for the payment status and when it will be released.
- Make it clear you’re tracking the delay and ready to escalate if necessary.
Step 4: Charge Late Fees (If Your Contract Allows It)
If your agreement specifies late fees, you may have the right to charge interest or penalties. This not only adds pressure but also communicates that you take collections seriously.
Step 5: File a Freight Claim or Bond Claim
- Freight Brokers: File against your $75,000 surety bond if a shipper refuses to pay.
- Carriers: Options include filing a lien on the shipment (state-specific) or pursuing a bond claim through the broker that booked the load.
Step 6: Use a Collections Agency
If the bill is months overdue, a collections agency may be your best option. While they’ll take a percentage, it’s often better than losing the entire invoice.
Step 7: Take Legal Action
When the amount is large enough, legal action may be necessary.
- Small claims court for smaller unpaid freight bills.
- Civil lawsuit for larger invoices.
Although this process takes time, it may be the only way to recover funds.
How to Protect Your Trucking Business in the Future
Prevention is always cheaper than chasing unpaid freight invoices. Protect yourself by:
- Running credit checks before working with new shippers.
- Using factoring companies to guarantee same-day or next-day cash.
- Keeping contracts and terms crystal clear.
- Building relationships with trusted brokers and shippers.
📌 Pro tip: A little vetting upfront saves you thousands later.
Final Thoughts: Keep Your Cash Flow Strong
Unpaid freight bills are more than a hassle — they can cripple your trucking company if you’re not prepared. The key is to follow a clear process, document everything, and protect yourself with the right financial tools.
👉 At Trucking Academy, we teach carriers, dispatchers, and brokers how to manage accounts receivable, use factoring effectively, and avoid non-paying shippers altogether.
Don’t let unpaid bills drag your business down.
Enroll today in our Accounts Receivable Training Course and take control of your cash flow.