What are the Best Credit Unions to Use as Broker?

You remember when everyone told you starting your own brokerage was a bad idea? This was a big part of why. Carriers shouldn't haul your freight either. There's just too much chance you take the money and run as a new broker. It happens literally all the time.

 

So, @FlashBolt - When did you start your brokerage? How many loads have you moved? What's your credit and average days to pay?

 

We will not even consider extending credit to a broker that has been in business for less than a year, it is WAY too risky. If a new broker wants us to pull their load, they have to be willing to pay the full rate upfront via comcheck or credit card.

 

No more risky than dealing with most carriers these days. No way I would pay a carrier up front.

 

No one ever has yet

 

You may explore the option of setting up an escrow payment system with an escrow provider. The escrow provider is an intermediary that decides if the seller has met the buyer's obligations and releases the funds upon approval.

 

Good luck explaining that to a trucking company trying to decide if they want to run a load for you. In fact that sounds like a paperwork nightmare for all involved.

 

When a carrier does decide to work with you, and for example they use RTS financial for their factoring company, move 3 loads with them and pay their factoring company on time. This will help you build credit.

 

Would you like for me to recommend some escrow providers? Escrow is not as common in the brokerage industry as it could be but perhaps it is an option to explore. They are several benefits as it protects both parties from things such as freight claims and late payments.