Industry guide · UK
Credit control for logistics and haulage companies
By AutoSettle · Updated
Quick answer
Credit control for logistics and haulage means vetting customers before taking loads, invoicing immediately with proof of delivery attached, agreeing short payment terms, and chasing overdue invoices without delay. Hauliers pay fuel, drivers and vehicle costs long before customers pay, so fast invoicing and automated reminders are essential to protect cash flow.
Haulage is a high-cost, low-margin business. Fuel, wages, tolls, insurance and vehicle finance are paid weekly or even daily, while customers often pay on 30 to 60-day terms. For smaller operators, a few slow payers can quickly cause a cash crisis.
Logistics firms also work with a wide range of customers, from long-term contract clients to one-off loads from freight exchanges and brokers. This guide covers how UK hauliers and logistics businesses can get paid faster and reduce the risk of bad debt.
Why hauliers wait to get paid
Missing proof of delivery
Customers often refuse to pay until they receive a signed proof of delivery (POD). If PODs are slow to come back from drivers, invoices go out late.
High upfront operating costs
Fuel, driver pay and vehicle costs are spent immediately, so every day an invoice is unpaid is funded from the operator's own cash.
Brokers and freight exchange customers
Loads booked through brokers or exchanges may come from unfamiliar companies, some of whom pay slowly or not at all.
Disputes over waiting time and extras
Waiting time, extra drops and failed deliveries are often disputed if not agreed in advance and recorded.
Damage and shortage claims
Customers may withhold payment on a whole invoice because of a claim on one consignment.
A credit control process for logistics firms
- 1
Vet customers before accepting loads
Check new customers and brokers on Companies House and with a credit reference agency, and set a credit limit.
- 2
Agree rates and extras in writing
Confirm the rate, waiting time charges, extra drop fees and payment terms for every job or contract.
- 3
Capture PODs digitally
Use electronic POD capture so signed delivery notes are available the same day.
- 4
Invoice on delivery with the POD attached
Send the invoice as soon as the load is delivered, with the POD attached, so there is no reason to delay.
- 5
Remind before and on the due date
Automated reminders keep payment front of mind for customers with long approval processes.
- 6
Separate claims from payment
Handle damage or shortage claims through your insurer and terms, and ask customers to pay undisputed amounts on time.
- 7
Escalate unpaid invoices quickly
Add statutory interest, stop taking new loads, and send a letter before action for persistent non-payers.
Customer types and credit risk in haulage
| Customer type | Typical terms | Recommended control |
|---|---|---|
| Contract customer | 30 days, regular volume | Credit limit, monthly review, automated reminders |
| Freight broker | 30–60 days | Credit check each broker, cap exposure |
| One-off load from exchange | Varies | Check company before accepting, consider shorter terms |
| Retail or large shipper | Long terms, strict invoicing rules | Follow portal and PO requirements exactly |
| Small business shipper | 14–30 days | Payment link on every invoice |
Your rights when haulage customers pay late
Haulage customers are businesses, so the Late Payment of Commercial Debts (Interest) Act 1998 applies. You can claim statutory interest at 8% above the Bank of England base rate and fixed compensation of £40, £70 or £100 per invoice unless your terms provide a substantial alternative.
Many hauliers trade on the Road Haulage Association (RHA) Conditions of Carriage, which include a general lien. This can allow a carrier to hold goods until charges are paid, subject to the conditions. Check your terms before relying on it.
This is general information, not legal advice.
Work out what you can claim with our late payment interest calculator.
Worked example (illustrative)
A fictional haulier runs 12 trucks and books regular loads from a broker acting for Hartley Brooks Ltd. It invoices £2,400 per load on 30-day terms, but PODs take up to a week to reach the office, so invoices go out late.
After switching to electronic PODs, invoices go out on delivery day. Automated reminders go out before the due date, and a 20-day overdue invoice triggers a notice mentioning statutory interest and £70 compensation. Average payment time drops noticeably. Figures are illustrative.
Protect yourself from broker non-payment
Brokers are a valuable source of loads but a common source of bad debt. Reduce the risk by:
- Checking every broker's company status and accounts before the first load.
- Setting a maximum exposure per broker.
- Getting rates and terms confirmed in writing for every booking.
- Stopping new loads as soon as a broker's invoice goes overdue.
Terms that protect hauliers
Many disputes in haulage come from unclear terms. Check your conditions of carriage and rate confirmations cover:
- Payment terms, and that they run from delivery, not from receipt of the POD by post.
- Waiting time charges, free waiting time allowed and how it is recorded.
- Charges for extra drops, failed deliveries and redeliveries.
- Fuel surcharge arrangements if rates are not fixed.
- Time limits for reporting damage or shortages, and your liability limits.
- A lien over goods for unpaid charges, where appropriate.
Haulage credit control KPIs
Track these figures to spot cash flow problems early:
- Average time from delivery to invoice.
- Invoices sent without a POD attached.
- Days sales outstanding by customer and broker.
- Exposure per broker compared with your limit.
- Disputed waiting time and extras by customer.
How AutoSettle helps hauliers
AutoSettle watches every haulage invoice in Xero, QuickBooks or Sage and sends reminders before and after each due date, so the office team no longer has to chase between planning loads. Customers can pay online, and firmer notices or a letter before action are only sent once you approve them.
Frequently asked questions
How can hauliers get paid faster?
Capture PODs electronically, invoice on delivery with the POD attached, and use automated reminders before and on the due date.
Can a haulier hold goods until paid?
If you trade on terms that include a lien, such as the RHA Conditions of Carriage, you may be able to hold goods until charges are paid, subject to those terms.
Should I credit-check freight brokers?
Yes. Brokers vary widely in how reliably they pay, so check each one before accepting loads and cap your exposure.
Can a customer withhold payment because of a damage claim?
They may try, but claims should be handled under your terms and insurance. Ask for undisputed amounts to be paid on time.
Can I charge interest on late haulage invoices?
Yes, under the Late Payment Act, unless your terms of carriage provide a substantial alternative remedy.
Can AutoSettle attach PODs to reminders?
AutoSettle reminders link to the invoice from your accounting system. If the POD is attached to the invoice in Xero or QuickBooks, customers can access it from the reminder.
What payment terms are common in UK haulage?
Terms of 30 days from invoice are common, with some large shippers and brokers asking for 60 days or more. Smaller operators often negotiate shorter terms or offer quick-pay options for faster settlement.