Credit Checks Can Protect Your Trucking Business

In trucking, working with qualified, stable and established brokers/shippers is critical and one of the ways to protect yourself is by performing credit checks from the beginning. It is not hard to start a freight brokerage and many people have tried and failed for various reasons.  In many cases this leaves the carrier as the one taking a huge risk and possibly not getting paid for the load they have already hauled.

What does a small trucking business do when the freight has been delivered and they have paid all their expenses (fuel, equipment, payroll, maintenance, etc) only to find they are the ones on the short end and not being paid? Working with qualified clients is imperative and performing credit checks can be the solution.

For trucking companies who chose to factor their freight bills with Tetra Capital they get access to free credit checks on potential brokers/shippers.  We give each of our clients a login to our credit portal and this allows them to check credit before they engage in business with someone they do not know. Obviously there are still risks in hauling freight for someone you don’t know; however, in this business, past history is a pretty good indication of future performance. Very rarely does a company with a high credit rating all of the sudden go out of business. What generally happens is their days to pay will continue to move upward as they struggle to pay their bills. Then finally one day they can’t drag it out any longer and they go out of business. During this process the credit rating will gradually decline. We also have access to several other options to check credit before our client hauls the load. Additionally, we have a huge internal database filled with payment history for thousands of brokers/shippers. All of this can help to protect you and your trucking company and assist in getting you paid for the loads you haul.

One thing I have learned from my many years in transportation is that I would never run freight without knowing what the likelihood was that I would be paid. Unfortunately, many smaller trucking companies do not have the means to have access to numerous databases like we have. The good news for them is by partnering with Tetra Capital for freight bill factoring they will get the access to this critical data and be able to easily and inexpensively perform the much needed credit checks.

Click here for more information on how you can get free credit checks when you partner with Tetra Capital.

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About Jeremy Robison

Jeremy is an expert at helping transportation companies of all sizes grow by giving them access to the working capital they need. He has been involved in various roles within the transportation industry, including: freight factoring, equipment financing, equipment purchasing, lease operator program, driver manager, recruiting, payroll and equipment maintenance. These experiences have allowed Jeremy necessary insight as he has grown and directed Tetra Capital’s Transportation Factoring business.

View all posts by Jeremy Robison

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