Freight broker credit checks can be the difference between you making money and losing money. In fact, hauling available truckloads for customers who will pay you is critical to the success of your business and livelihood. Monitoring your brokers and shippers credit is an often-overlooked key component to your success. Make sure you’re hauling for brokers and shippers who pay their bills every time.
Freight broker credit checks can be expensive and time-consuming to do on your own and are absolutely necessary when hauling a load for a new broker or shipper.
For instance, consider which option is more cost-effective.
Option A – A good factoring company charging a percentage of the load as the fee. As well as no nickel and dime charges including application fees, termination fees, and administration fees.
Option B – Hiring an in-house person to check credit, invoice, and follow-up. Plus, be looking at ALL of the industry for potential issues. As well as making sure the invoices pay on time and for the correct amount. Also, and MOST importantly, alerting the carrier to paperwork issues that can quickly be resolved when they are dealt with promptly and properly.
One of the amazing things about freight factoring with Tetra Capital is that we subscribe to numerous credit alert systems.
No one has a crystal ball, but these continual broker credit checks help us spot potential problems and advise our clients before a significant issue arises. Our initial broker credit checks and ongoing monitoring combine to help Tetra have an incredibly low “charge-back” ratio compared to other trucking factoring companies. As a result, our clients save money with lower rates and haul loads for more brokers and shippers that pay every time.
Our carriers can easily use our resources to thoroughly check their potential and current brokers and shippers credit.
In fact, by having dedicated account managers for all of our clients, it is something we recommend regularly doing. We have found that new carriers often overlook and don’t realize the importance of regular freight broker credit checks. They want to believe that a rate con is a “contract” and that they can force brokers and shippers to pay. They are not wrong; it is a contract. However, as any lawyer will tell you, a contract is meaningless without legal counsel in your corner. Most owner-operators and small fleet owners don’t have an attorney on retainer for their business. Nevertheless, maybe carriers can fight to be paid, but who wants to fight that war? Let alone have it happen regularly.
Hauling available truckloads for customers who will pay is essential to your trucking business.
Call us today at (801) 676-0182 to discuss how our broker credit checks can help ensure you get paid for the loads you haul.