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 freight broker that has good credit.
First and foremost, a good credit rating exhibits that the broker has an established credit history. Just like many owner operators started with one truck, freight brokers had to begin building relationships with both shippers and carriers. Over the course of several months or years, brokers build relationships with a network of carriers by paying consistently on-time and thus establishing a healthy credit history.
Let’s take a look further into the characteristics of a freight broker with good credit, and why shippers and carriers should choose a broker 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, Broker credit scores of 87 and above are considered low risk.
2. Pay their carriers on-time
Freight brokers 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, brokers 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 broker 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 freight broker is their vast network of carriers. Successful freight brokerage 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 brokers that have good credit. Relationships between a shipper and freight broker begin when the shipper trusts the broker to move their product safely and efficiently. The broker’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 broker(s) with good credit to pay their carriers on time and focus on providing services that help benefit and grow all parties involved.