How Long Does a Freight Broker Have to Pay a Carrier?

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.

It's one of the most common questions from new owner-operators: how long can a broker take to pay me? The honest answer is that your paperwork decides, not a federal rule. Here's how to read it and what to do when payment runs late.

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. Your contract sets the terms

Payment timing usually comes from your rate confirmation and any broker-carrier agreement. Look for:

Net terms: a number of days after a trigger, like receipt of invoice.
The trigger: many terms start the clock when the broker receives a complete invoice with the signed POD, not on the delivery date.
Quick-pay options: faster payment for a fee.
Paperwork requirements: how and where to submit, and what's needed.

If your rate con says nothing about payment terms, ask for them in writing before you dispatch. "We pay fast" on the phone isn't a term.

Make sure the clock actually started

Before you call a payment late, confirm the broker received everything: invoice, signed POD, lumper receipts, and anything else required, sent to the right place. Get a confirmation email or a portal screenshot.

What federal rules do cover

Federal rules don't set a general payment deadline, but they do give you tools:

Transaction records: brokers must keep records of each transaction for three years, including the date of payment to the carrier, and each party has the right to review them (49 CFR 371.3).
Financial security: every broker must keep a $75,000 BMC-84 bond or BMC-85 trust to pay carriers if the broker fails to carry out its contracts (49 CFR 387.307).

When payment is late: a sensible escalation

A few days past terms: email AP. Confirm receipt of paperwork and ask for a payment date.
No clear answer: call, then follow up in writing summarizing the call.
Still nothing: send a final demand letter with a firm pay-by date and the surety named. See how to write one.
Deadline passes: file a claim with the surety or trustee. See the guide.

Don't wait months. If a broker is in financial trouble, its bond may be shared by many claims, and the rule gives a 60-day claim window after FMCSA posts a financial failure notice in the FMCSA Register (49 CFR 387.307).

Check the broker while you wait

Look up the broker's authority and bond with our free Broker Check. A pending revocation or bond cancellation while you're waiting on a check is a sign to escalate now.

Get paid faster next time

Negotiate terms before you dispatch and get them on the rate con.
Submit complete paperwork the same day you deliver.
Consider quick pay or factoring if cash flow matters more than the fee. See factoring disputes.
Keep track of which brokers pay on time.

Ready to push? Our $19 claim packet creates a demand letter with your deadline and a bond-claim letter ready to send. Related: deadlines.

Reading common term language

"Net 30 from receipt of invoice and POD": 30 days after the broker gets complete paperwork, not after delivery.
"Quick pay available at X%": faster payment if you choose it, minus the fee.
"Payment upon receipt of payment from customer": a contingency clause. Think hard before signing it.
No terms listed: ask before you haul and get the answer in writing.

Track every invoice

Keep a simple log for each load: delivery date, date paperwork sent, terms, due date, follow-up dates, and payment received. When something goes wrong, that log becomes your timeline for a demand letter and bond claim. Our packet's timeline sheet uses the same dates.

Common mistakes

Counting from delivery instead of the contract's trigger.
Following up only by phone.
Waiting months to escalate. The longer you wait, the more likely other carriers have already filed against the same bond.
Not checking the broker's FMCSA record while waiting.

What not to do

Don't threaten things you won't do, don't post accusations publicly that you can't back up, and don't hold future loads' freight over a past payment. Stay factual and use the tools that exist: demand, bond claim, complaint, and legal advice when the amount justifies it.

Sources

FAQ

Is there a federal law that says when brokers must pay carriers?
We are not aware of a general federal rule setting a payment deadline for brokers to pay carriers. Payment timing is generally set by your rate confirmation and broker-carrier agreement. Ask an attorney about your state and contract.

When should I send a demand letter?
Once payment is past the agreed terms and polite follow-ups haven't worked. Many carriers send a final demand with a 10-day deadline.

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.