Carriers will pull a freight broker’scredit report to see how they pay their freight bills. When a trucking company must pay their driver and front money for fuel expenses, they can ill afford to move a load and risk not being paid within terms.
A large majority of carriers these days utilize a factoring company in some way, shape or form. Invoice factoring is used across most industries but even more so in the transportation industry. Factoring firms will not agree to an advance on receivables for a carrier if the broker they are considering hauling for is a high credit risk.
With a less than favorable business credit score a broker may also find it difficult to secure freight from shippers. This is because a shipper must be cautious when deciding on who to trust their loads to. If a broker has lackluster credit it is most likely an indication that they may be unable to deliver in a timely manner or even worse, that they may go out of business.
Managing Your Business Credit
TransCredit supplies most of the major carriers, factoring firms, insurance companies, load boards and shippers with the credit reports, scores and payment trends on freight brokers. We can help whether you are a new freight broker trying to build your credit or a tenured company trying to update your report!
We offer a Credit Building and Monitoring Program that includes all the benefits outlined below:
- Unlimited access to your company’s credit report and profile online 24/7/365
- Ability to add credit references and update corporate data. You should constantly be aiming to make sure your business credit report is as robust and up to date as possible.
- Advance notification of issues that have lowered your company’s credit score by 3 points or more
- We also offer dispute resolution assistance
- Customer support with real live certified credit advisors
Below is a link to a video tutorial that explains our Credit Management and Protection program in more detail. Contact us today for information on current pricing.
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