Whether you’re a shipper looking to move freight at more competitive rates, or a carrier looking to haul some more loads, it’s important to consider working with a 3PL that has good credit.
First and foremost, a good credit rating exhibits that the 3PL has an established credit history. Just like many owner operators that started with one truck, 3PLs had to begin building relationships with both shippers and carriers. Over the course of several years, 3PLs build relationships with a network of carriers by paying them consistently on-time and thus establishing a healthy credit history.
Let’s take a look further into the characteristics of a 3PL with good credit, and why shippers and carriers should choose a 3PL that has a better credit history.
A freight broker with good credit will:
1. Have a credit score of 87 or higher
According to Ansonia Credit Data, which provides the credit score and days to pay data on DAT, 3PL credit scores of 87 and above are considered low risk.
2. Pay their carriers on-time
3PLs know how important it is to pay their carriers when they say they will. Since a delayed payment on just one load can have a huge impact on a small trucking company, 3PLs with good credit are always making sure that their carrier partners are paid on-time.
3. Have multiple payment options
Another advantage of working with a 3PL that has good credit is the opportunity for multiple payment options. Here at Route, we are partnered with TriumphPay, which means that our approved carriers can be paid in as little as 4 days with QuickPay. TriumphPay also makes it easy for carriers to manage their payments on any device and get paid how they want, when they want.
4. Be focused on building relationships with carriers
One of the greatest strengths of a 3PL is their vast network of carriers. Successful 3PL companies spend a great deal of time building relationships with carriers so that they can offer consistent loads and become shipping experts in many lanes, regions, and/or commodities. The more loads a broker is able to consistently ship for customers, the more loads they are able to offer to their carrier partners.
Shippers also benefit.
Much of the information above pertains to carriers, however, shippers also benefit from working with a 3PL that has good credit. Relationships between a shipper and 3PL begin when the shipper trusts the broker to move their product safely and efficiently. The 3PL’s credit score is one of the most important ways to demonstrate that they will be able to provide a safe shipping experience.
Shippers can count on their 3PL with good credit to pay their carriers on time and focus on providing services that help benefit and grow all parties involved.