Broker check

How to check the credit rating of freight brokers in order to insure against fraud in advance? This will be discussed further.

Take precautions. Recently, the state has taken certain measures to make it harder for brokers to use telecom operators. So, since 2013, a law has been in force, according to which brokers must make guarantee contributions in the amount of 75,000

The key objective of this law is to fight corruption in the field of cargo
brokerage services. It also guarantees tremendous financial security.

Logistics and transportation of Container Cargo ship and Cargo plane with working crane bridge in shipyard at sunrise, logistic import export and transport industry background

carriers who have suffered from brokers.
A $75,000 deposit eliminates the need to renew licenses.
However, there are still dishonest brokers in this business. Transport firms are required to take precautions to ensure security when dealing with new brokers.

According to Ansonia Credit Data, which provides credit rating data, a broker’s credit score of 87 or higher is considered low risk. A broker with such a rating can be trusted.

How to minimize risks

Consider the following three steps your company can take to
reducing the risks of interaction with dishonest brokers:
1. Negotiate. You should find out if the brokers have a deposit of
$75,000, how long do they work and how
payment is made. Also, find out if the broker provides other
services. So, many of them are owners of transport companies.
2. Trust your intuition. See what features of doing business have
companies. Pay attention to how brokers answer phone calls,
Do they have a web page? An experienced broker takes care of his face
companies. His business tactics are different from those of a dispatcher.
3. Check the broker’s reputation. This step is the most important. By
By searching the net, you can easily find the MC number, DOT and other data.
Accordingly, you can find out how long the brokerage works
company, the insurance organization in which it is serviced and others
useful information. All this information is available on the website of the Federal
motor vehicle safety department.

Also, you can find out the rating of a credit broker from a supplier who
provides credit reporting services. Using the CarrierPro App
you can easily track the payment and credit details of thousands of freight brokers.
These services are relatively inexpensive. Avoiding brokers with high credit
risk, you can save your organization thousands of dollars this way.