Advance on Issue or Draft???

[4theloveoffe]

Which do you prefer?

Is it important to you to know that the first payment actually cleared the bank before you get advanced?

I've always been paid on draft clearance but getting paid on issue sounds attractive midmonth when I begin to get a lot of post dated checks for the beginning of the following month.

Has anyone noticed an increase in charge backs/nto's from getting paid on issue?

 

[bboman23]

Pointless with most companies. They pay you before they know if the draft cleared. Drafts on 3rd, you get paid on 4th.....company doesn't know if it is nsf for 4 to 5 days then you get charged back.

Best if companies waited 5 days after draft then paid agent. So the way it is, draft or issue is the same thing.

 

[4theloveoffe]

Pointless with most companies. They pay you before they know if the draft cleared. Drafts on 3rd, you get paid on 4th.....company doesn't know if it is nsf for 4 to 5 days then you get charged back.

Best if companies waited 5 days after draft then paid agent. So the way it is, draft or issue is the same thing.

True...I meant for example you write a policy TODAY that doesn't draft until the 15th of next month (almost 30 days out) but the company pays you 2 days from TODAY.

 

[rousemark]

True...I meant for example you write a policy TODAY that doesn't draft until the 15th of next month (almost 30 days out) but the company pays you 2 days from TODAY.

You are describing being paid on submission not on issue.. Good way to run up a debit balance with some companies.

 

[WinoBlues]

True...I meant for example you write a policy TODAY that doesn't draft until the 15th of next month (almost 30 days out) but the company pays you 2 days from TODAY.

I agree with Ben I would prefer to be paid later than sooner. Once your pipeline is full it does not matter when you get paid. However, it is a mute question since the companies pay when they pay.

 

[4theloveoffe]

I agree with Ben I would prefer to be paid later than sooner. Once your pipeline is full it does not matter when you get paid. However, it is a mute question since the companies pay when they pay.

Depends on the IMO contract with the carrier from what I've been told. You can choose which way you prefer to get paid with some IMO's

 

[WinoBlues]

Depends on the IMO contract with the carrier from what I've been told. You can choose which way you prefer to get paid with some IMO's

That may be, I have never asked.

 

[4theloveoffe]

That may be, I have never asked.

I didn't know myself until just a few months ago...in the words of the late and great Michael Jackson "You Are Not Alone" lol

 

[sirherbie]

To be honest I've noticed no difference between drafting in 5 days or 30 days as far as nsfs go.If you have a 30 day out draft simply send your thank you card 10 days before the draft and remind them.

 

[bboman23]

True...I meant for example you write a policy TODAY that doesn't draft until the 15th of next month (almost 30 days out) but the company pays you 2 days from TODAY.

But you mentioned charge backs. Issue vs draft has NO effect on this. They pay you in 2 days, you'll be charged back if draft doesn't go through. You get paid on draft? You'll be charged back if that draft doesn't go through since they pay you before they know if it goes through or not.