Broker Says the Shipper Hasn't Paid Them? What Carriers Should Know

Not legal advice. This is a document-preparation tool, not a law firm. Results aren't guaranteed. Verify all info with FMCSA and consult an attorney for legal questions.

You delivered, you invoiced, and now the broker says it can't pay you until its customer pays it. Sometimes that's honest cash-flow trouble. Sometimes it's a stall. Either way, it helps to know what your paperwork says and what rights you have.

Check the broker first. It's free.

See authority status, authority age, BMC-84/85 on file, and the surety name from FMCSA records.

Broker owes you? Build a demand letter + bond-claim packet for

9. Start with your contract

Your rate confirmation and any broker-carrier agreement you signed control the payment terms. Look for:

Payment terms: net days, quick-pay options, and when the clock starts (often on receipt of invoice and signed POD).
Any "pay when paid" or "pay if paid" language: wording that ties your pay to the shipper paying the broker. Many carrier agreements don't have it.
Required paperwork: missing documents can delay payment legitimately.

If your agreement doesn't make your payment depend on the shipper, say so in writing. Our demand letter includes the line "Our agreement with you is not contingent on your customer paying you," which you should only use if it's true for your contract.

Your right to see the transaction record

Federal rules require brokers to keep a record of each transaction for three years (49 CFR 371.3). The record must show, among other things, the amount of compensation the broker received for the brokerage service and the name of the payer, and the amount of any freight charges the broker collected and the date of payment to the carrier. The rule also says: "Each party to a brokered transaction has the right to review the record of the transaction."

So if the broker says it hasn't been paid, a polite written request to review the transaction record is reasonable. You might write: "Under 49 CFR 371.3(c), please provide the record for Load #___ so we can review it." How a broker responds tells you a lot.

What to do, step by step

Confirm your paperwork is complete. Make sure the broker has the signed POD and invoice in the format it requires.
Get the excuse in writing. Ask by email when the shipper is expected to pay and when you'll be paid.
Request the transaction record under 49 CFR 371.3.
Set a firm deadline. Send a final demand letter with a pay-by date. See how to write one.
Name the bond. Every licensed broker must keep a $75,000 BMC-84 bond or BMC-85 trust (49 CFR 387.307). Tell the broker you'll file a claim if you're not paid. Find the surety with our free Broker Check.
File the claim if the deadline passes. See the step-by-step guide.

If the broker is in real financial trouble

If a broker can't pay many carriers, its bond may face many claims. The current version of 49 CFR 387.307 requires sureties to notify FMCSA when payments or valid claims would drop the bond below $75,000, and FMCSA may then suspend the broker's authority unless it fixes the problem. If FMCSA posts a broker's financial failure in the FMCSA Register, the surety must accept claims for 60 calendar days after that notice. Move fast. See what to do if a broker goes out of business.

Keep it factual

Stay polite and specific. Dates, amounts, load numbers. Anything you write may be read later by a surety or a judge.

Prevent it next time

Read payment terms before you sign, check the broker's bond and authority age, and keep good records. Our broker check guide walks through it.

Not sure what to do? Build your demand and bond-claim letters with our $19 claim packet, or check the broker free first. Also see trucking deadlines.

A sample records request

Keep it short and polite:

"Re: Load #[number], delivered [date], Invoice #[number]. You've told us your customer hasn't paid you yet. Under 49 CFR 371.3(c), each party to a brokered transaction has the right to review the broker's record of the transaction. Please send us the record for this load, including the compensation received and the date of payment to the carrier, by [date]. Our agreement does not make payment to us contingent on payment by your customer. Please confirm when we will be paid."

Only include that last sentence if your contract supports it.

Common mistakes

Accepting "we're waiting on the shipper" for weeks. Set a date and stick to it.
Not reading your own agreement. If you did sign a pay-when-paid clause, you need a different approach, and possibly a lawyer.
Calling the shipper to demand payment. Your contract is usually with the broker. Talk to an attorney before going around them.
Losing track of dates. Write down every promised payment date.

Signs the excuse is a stall

The promised date keeps moving with no explanation.
The broker won't put anything in writing.
FMCSA records show a pending revocation or bond cancellation.
Other carriers report the same problem with the same broker.

If you see these, skip the waiting and send a demand naming the surety.

Sources

FAQ

Does a broker have to pay me if the shipper didn't pay?
That depends on your rate confirmation and broker-carrier agreement. Many agreements do not make carrier payment contingent on the shipper paying. Read your contract; if it's unclear, ask an attorney.

Can I see what the shipper paid the broker?
Under 49 CFR 371.3, brokers must keep a record of each transaction, including compensation received, and each party to a brokered transaction has the right to review that record.

Check the broker first. It's free.

See authority status, authority age, BMC-84/85 on file, and the surety name from FMCSA records.

Broker owes you? Build a demand letter + bond-claim packet for $19.

More guides

Not legal advice. This is a document-preparation tool, not a law firm. Results aren't guaranteed. Verify all info with FMCSA and consult an attorney for legal questions.