Get Credit Checks
We have all heard the old adage “if it sounds too good to be true, it probably is…”. Recently a carrier client of ours learned a hard lesson on that theme. Here’s the story.
The trucker found a load from a broker with an active MC # and brokers’ bond. They couldn’t believe their good luck. The load was still available from Texas to Arizona for $3.34 / mile. They quickly provided their information packet to the broker, fueled up, and got rolling to the pick-up. Everything went smoothly on the trip and the delivery. They delivered the load safely and on time.
When they sent the proof of delivery documents to us, their factoring company, they had not taken time to check credit on the broker. They booked it quickly to be sure and get what looked like a very profitable load. The broker had a poor credit profile, but we sent the invoice the same day and planned to track it carefully when it came due in 30 days. When the broker didn’t pay and would not return any calls, we contacted the shipper. The shipper had paid the broker… but they only contracted to pay $1.87/mile.
Why would the broker enter into a contract where they would lose $1.47 / mile? Because they never intended to pay the truck. The broker did multiple transactions like this one, and disappeared… All the truckers caught in this scam, and the bonding company that was also duped, are all looking for the conman broker.
The moral of the story… always check credit on shippers and brokers before you agree to haul a load. W W Payments does all your credit checks for free… and maintains a list of 2,400 + approved brokers and shippers, available on our website 24/7. If you use our service, and verify credit before you haul the load, you never take a credit loss… and won’t get tricked by the bad guys.
Be safe, and Roll on….