Factoring Companies Guidebook
Back Loads
Where a haulier having completed a delivery to a particular destination, arranges a load to carry back to nearer its home base, where it may otherwise have been empty, thus gaining revenue to offset against its return trip/overheads.
Alternative Terms :-
Return Loads
Concerns
Return loads may be arranged through Agents on behalf of their customers, which is likely to become the debtor. The client may have no knowledge of the debtor and their creditworthiness. There is the potential for contra situations where the Client delivers on behalf of another haulier, which also undertakes sub-contract work for the Client.
Identification
Make enquiries of the Client as to whether they arrange back loads and the levels of such work. Review the Creditors ledger for potential contras against entries on the Debtors ledger.
Treatment
Back loading should be avoided. If there is a small element of this type of business and it is easily manageable and controllable within the margin, the invoices may be assigned and not funded.
Industries where Back Loads are prevalent
Transport/Haulage.
