Credit Checks
limiting your losses
One of the more time consuming, but necessary aspects of Brokering is the credit check process.
I started out using a service that gave me unlimited credit checks for $150 and a second source transcredit to validate the firsts findings. I also tried the manual method of calling the references myself, but found the references very uncooperative in giving forth useful information about there customers. The trouble with the unlimited credit reports were they were too generic. In freight brokering you need industry specific credit information and the best source I have found so far is First Advantage. They have many credit reports already done with D&B scores and will do new one with up to 5 references in 48 hours. I realize 48 hours is too long for some deals, so if there is no report already on fie or if there credit is below an 80 D&B I require my shipper to provide a credit card back up. I can authorize the card prior to shipment and it holds the money for 30 days. If the shipper does not pay by then, charge the card, or reauthorize to give them more time. I still use transcredit as a second check source. The only limitation in there credit reporting process is your customer.If the customer does not provide there information quickly it will delay the report.
There are many shippers who back away once my credit company calls. This saves me the hassles of late or unpaid bills later. It still comes down to your analysis and decision in the end. Using these methods I have only had on unpaid freight bill in 2 years of operation for $1000 and that owner had a stroke and cannot work any longer.
Please share your experiences and we will all benefit. Trey S. Creighton- Truckavailable
