Freight Forwarder Payment Terms

I’m a freight forwarder, not a moneylender! Unlimited payment terms? A freight forwarder boss asks the soul-searching question: when the cash flow dries up, what happens to your clients? Reasonable payment terms are the real guarantee!

In all my years as a freight forwarder, the one sentence I dread hearing the most is: “Oh come on, other companies give 60-day, even 90-day payment terms — you’re too rigid!” I just want to say: my friends, are you looking for a freight forwarder, or are you looking for a lender? I front tens of thousands in cash flow on your behalf, and earn back a few hundred in hard-earned fees, and you still want such long payment terms — how is this business supposed to work?

As a freight forwarder, my principles have always been clear: When clients need service, I deliver 200%; when clients need better pricing, I do everything I can to offer a discount. But when it comes to unreasonable payment terms, I really can’t comply. After all, if I recklessly extend credit just to win orders and my cash flow dries up one day — aren’t you worried I might just disappear?

So, reasonable payment terms are the real guarantee for a long-lasting partnership! What’s the longest payment term you’re currently offering? Let’s chat in the comments — let me see who’s the most “generous”!