Broker of construction trucking services

Definition

A middleman who arranges hauling by independent carriers and owes them the freight charges.

Why It Matters

Where most revenue arrives through brokers, the payment terms are set by statute and not by the invoice: California requires payment by the twenty-fifth day of the month following the haul, with a penalty on anything improperly withheld. That is a working-capital fact, not a legal footnote, and a model built on thirty-day terms will be wrong by weeks. It also means the customer relationship belongs to the broker and not to the operator.