Is it fair that RMCs don't pay movers until after they've been paid themselves?

Dec 08 | 2020

Can this be right? Steve Jordan asks whether the practice of RMCs paying movers only after they have been paid by their corporate account clients is right.

I confess, this is a phenomenon that has only just come to my attention.  As I joined in some of the sessions at the virtual IAM conference, I noticed one comment that recurred.  Actually, it wasn’t even really a comment, it was just an accepted fact, not even for discussion: apparently some, perhaps most, Relocation Management Companies (RMCs) have a policy of not paying their removal company suppliers until they receive the funds for the move from their own customers.

At first, I let it go, because I assumed I had misheard.  But it happened again, and again.  Nobody was complaining about it, everyone just accepted it.  In a subsequent discussion with a moving company in the UK, on a different subject, I was told that it would be very helpful if RMCs could put pressure on their clients to pay more quickly.  There was no suggestion at all that this should have been unacceptable in the first place ...

Click here to read the full story in The Mover magazine.