In the moving and mobility industry, it is likely that you will encounter partners who are facing financial challenges. Managing IAM’s programs that have been constructed to protect our members’ best interests has afforded me insight into global best practices. When you start to see delays in payments, what should you do to help move things along?

First and foremost, communication is key. We forge the majority of our business relationships on personal connections, integrity and trust. It sounds simple but if you see payment patterns begin to change, pick up the phone—talk to your partner and discuss a plan that works for both of you. Clarifying payment expectations in advance can help relieve some of the frustrations of delinquent payments, slow responses, or delay tactics.

If your initial approach fails, then you need to prioritize protecting yourself. As many of you know, the  IAM Issue Resolution System (IIRS) is a fantastic resource that can help resolve disputes quickly and efficiently by cutting down on email traffic and frustrations. An important point: if you don’t use it, it doesn’t work.

One of the major benefits of the IIRS is that it is a proactive intervention tool as invoices can be reported as soon as they are overdue. Once an invoice is reported, the intervention process is generally initiated within 48 hours. Based on the current data in the IIRS, we are seeing an average of a 24-day resolution period. You no longer need to wait until an invoice is 120 days overdue; you can act immediately. If you’ve reported a partner to the IIRS, it’s a good idea to check your payment terms and think about making changes for future transactions.

As the IAMTrusted Moving Company  (ITMC) network continues to grow, we anticipate that both the need to utilize the IIRS and the resolution time period will reduce. ITMCs commit to resolve issues. An ITMC must acknowledge any issue logged against them within 10 business or they risk losing their designation. It is important to understand that those who proudly adapt the ITMC brand commit to paying on time and if they don’t, they will make it right quickly and efficiently.

There are several other proactive measures and business practices that you may also consider. Non-peak season is a great time to review the documentation you have in place to ensure that quotes, contracts, and SLAs keep you protected. Additionally, providing your staff with clear prompts to obtain written authorizations will significantly enhance financial safeguards. It is beneficial to consider exploring tech tools such as AI to assist with reviewing your current documentation and processes to provide suggested adjustments.

It is vital to not only take a deep dive into your internal operations but also to review external agreements you have in place. Not all business is good business. It’s crucial to conduct a thorough review of RFP and contract terms to ensure that any business engagement supports the necessary cash flow for sustainable operations. Movers are often requested to be the most cost effective while providing optimal service which can absolutely lead to a pressure to accept business under terms that may not be optimal for your business model.

The survival of our industry is based upon the strength of our network. If we continue to agree with payment terms that do not support the seasonality of our business, our service levels and employment prospects will suffer. A true partnership with a client or service provider is based on an agreement that is mutually beneficial and ensures financial sustainability and reliability. If you realize that you are currently engaging in contracts or agreements that don’t serve you, perhaps it’s time to reconsider the terms in which you plan to continue engaging while ensuring your financial stability. You have the power to negotiate payment terms or request advances—don’t be afraid to leverage it.

Ultimately, the success of our industry lies in the relationships we build and the trust we uphold. Let’s work together to address financial challenges head-on, prioritizing trust, transparency, and swift issue resolution. By doing so, we can ensure the sustained success of our moving businesses well into the future.