Credit Checks – Avoid Being Swindled

Credit Checks

Avoid Being Swindled

Would you give a stranger a $2,000 loan? If you haul freight for a customer and they don’t pay you immediately after dropping the load, that’s essentially what you are doing. Credit is the reality of the trucking industry. Most shippers remit payments based on 21- or 30-day pay terms. It’s like buying your service with a credit card, then paying the card off 21 or 30 days later. In this scenario, your business is the credit card. If your customer defaults on an invoice, then your business ends up footing the bill. If this happens too many times, your business will quickly go under. Protect your business. Run credit checks. Don’t let customers trick you into paying for your own services.

By running a credit check, you are evaluating the customer’s ability to pay you back. Here are a few things to look for:

Pay Attention to Details

By running a credit check, you are evaluating the customer’s ability to pay you back. Here are a few things to look for:

  • Is the customer’s company information consistent?

    • Check pertinent information on the BOL and rate confirmation against a credit check system: business name, MC number, phone number, email, etc.

  • Is the customer in good standing?

    • Do they normally pay their invoices?

  • How quickly do they usually pay on invoices?

    • This will help you plan your expenses if you are not using a factoring company.

Broker fraud is a real threat in the trucking industry. Free credit check systems are a way to start but don’t always offer accurate information. TAFS designed our credit check system specifically for our clients and contains up-to-date information on tens of thousands of brokers and shippers.

Don’t let your customers swindle your business. Protect yourself with a reliable credit check system.

By |2018-08-31T08:14:09+00:00June 28th, 2018|Starting a Trucking Company, Trucking Business Tips|0 Comments

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