Legal Lifelines for Freight: What to Do When You’re Owed Money
I joined The Freight Coach Podcast with finance consultant Janie Mae Howerton to talk about a reality that too many brokers and carriers face: slow pay and unpaid invoices. In a business where cash flow keeps the wheels turning, collections are not just a finance issue — they’re a survival issue.
As a freight collections attorney, I see the same problems over and over. Companies wait too long to act, let documentation slip, or don’t know their legal rights. By the time they call me, weeks or months have passed — and the chances of recovery have dropped.
In this article, I’ll share the key strategies we discussed on the podcast: how to track receivables, prevent fraud, enforce contracts, and know when to escalate to a collections attorney.
Why Early Intervention Is Everything
One of the biggest mistakes I see is waiting too long. Many companies hope that if they just give the customer more time, the money will come. Sometimes it does — but more often, it doesn’t.
The truth is simple: the older the debt, the harder it is to collect. At 30 days, you still have leverage. At 60 days, you’ve lost some control. At 90 days or more, the odds drop sharply.
That’s why I recommend running AR Aging Reports weekly. These reports break invoices into buckets — 0–30, 31–60, 61–90, and 90+. By reviewing them consistently, you can spot trouble before it becomes unmanageable.
Tools That Keep You Ahead
Freight companies don’t need a huge accounting department to manage AR. They need consistency. On the show, Janie and I talked about practical tools that make a big difference:
QuickBooks: integrates with most TMS platforms and tracks invoices automatically.
TMS Reports: connect each load to its paperwork, payment status, and customer profile.
AR Aging Detail Reports: give you a snapshot of overdue accounts every week.
Even a small brokerage or carrier can use these tools to stay on top of receivables.
Documentation: Your Ticket to Payment
As a freight collections attorney, I cannot stress this enough: documentation makes or breaks collections. If you can’t prove delivery and agreed terms, you’ll struggle to collect.
Here’s what you must have on every load:
Bill of Lading (BOL) — signed, showing shipment details
Proof of Delivery (POD) — confirmation that the load was received
Rate Confirmation — proving the agreed price and terms
Invoice — with due date and clear instructions
Missing just one of these can delay or even destroy your ability to recover payment.
Fraud Prevention in Freight
Fraud is growing in our industry. Fake carriers, false paperwork, and double brokering are hitting brokers and shippers harder than ever. On the podcast, I shared some of the red flags that signal trouble:
Inconsistent or missing paperwork
Carriers or brokers refusing to provide signed documents
Suspicious MC/DOT numbers or mismatched details
Customers with a pattern of excuses or delays
To protect yourself, always verify broker bonds and insist on solid contracts. Contracts are not just formalities — they’re shields that protect your assets.
Small Carriers: You Still Have Options
Many small carriers and owner-operators think collections is only for big companies. That’s not true. Even without a legal team, you have tools:
Freight Collection Agencies: firms that specialize in recovering unpaid invoices in trucking.
Small Claims or JP Court: a cost-effective option for balances between $1,500–$5,000.
Monthly Legal Consultations: a 30-minute call with an attorney can help you act early.
The key is not to ignore overdue accounts. The longer you wait, the harder it gets.
When to Call a Freight Collections Attorney
Not every overdue invoice needs legal action. But there are clear moments when bringing in a freight collections attorney is the right move:
Invoices over 90 days with no resolution
Repeated broken promises from customers
Large balances that threaten your cash flow
Fraud or double brokering situations
Attorneys can escalate with formal demand letters, file bond claims, or represent you in small claims or higher courts. Many, like me, work on contingency for certain cases — meaning you only pay if money is recovered.
The CEO Mindset: Leading with Discipline
Running a freight business means wearing many hats — sales, operations, dispatch, customer service. But the most important hat is the CEO hat. That means taking charge of finances, protecting assets, and making sure your business survives slow pay cycles.
Here’s the mindset shift I encourage:
Cash is king: never assume payment until the money clears.
AR is a scorecard: if you don’t review it weekly, you’re flying blind.
Protect assets with contracts: they are not optional.
Escalate on time: waiting is what kills businesses.
Case Study: The Cost of Waiting
One client of mine had $75,000 in unpaid invoices. They trusted their customer and kept moving loads, even after 60 days past due. By the time they called me, the customer had gone bankrupt. They collected almost nothing.
Another client paused credit at 45 days, escalated at 60, and sent the account to me at 90. We recovered 70% of what was owed.
The difference was timing. Acting early saves businesses.
Final Thoughts
This conversation on The Freight Coach Podcast was an opportunity to share the hard truth: collections is not optional in freight. It’s a core business function.
Here are my takeaways for brokers and carriers:
Run AR Aging Reports weekly.
Keep clean documentation on every load.
Watch for fraud and double brokering red flags.
Know your lien, bond, and small claims options.
Call a freight collections attorney when accounts hit 90 days.
We move the economy. We keep freight flowing. And we deserve to be paid. With the right systems, discipline, and legal support, you can protect your business and survive slow pay.
Listen to the full episode of The Freight Coach Podcast here.
Freight Collection Solutions
https://freightcollectionsolutions.com/
801 Travis Street, Suite 2101 #1422
Houston, TX 77002
📞 (713) 940-1886
📧 company@freight-cs.com