Sure fire way to avoid double broker scams

[Pablo]

We recently got burned by M.Haris and tried to come up with a way to make sure we don't get burned again.

We now run a credit check on every new carrier we broker a load to.

It's obvious from the credit check that the carrier is paying his bills, and is an actual carrier. Has expenses/credit for fuel, factoring companies, business services etc.

Double brokers won't.

I'm thinking this will catch them! It's expensive, but so is the alternative.

Any thoughts?

 

[Nawk]

Hey Pablo.

Whenever we tender a load to a new carrier, We're now requesting 3 "Trade References". They can be other brokers, customers whoever they're doing work for.

If they can't come up with three references... they're not pulling my freight. We make a point of checking the references too. It only takes a few minutes and in the long run can save a lot of grief (as anyone who's been double brokered or given a load to a bad carrier knows).

The D&B thing we'll do... but only if a carrier looks sketchy.

 

[faey06]

We recently got burned by M.Haris and tried to come up with a way to make sure we don't get burned again.

We now run a credit check on every new carrier we broker a load to.

It's obvious from the credit check that the carrier is paying his bills, and is an actual carrier. Has expenses/credit for fuel, factoring companies, business services etc.

Double brokers won't.

I'm thinking this will catch them! It's expensive, but so is the alternative.

Any thoughts?

We actually want 5 credit references, but even this is not infallible. Check out my thread for Ongo Logistics. One of his references was the TD Bank in Mississauga. I called & received a glowing reference, turns out it was a relative, as were other references. We actually managed to get paid, but others got burnt. I think this site gives you the heads up on dodgy/poor payers better than anything else we have tried.

 

[theman]

The D&B thing isn't perfect, and is pretty expensive.

Unfortunately the problem may get worse this spring because the truck supply is going to be really tight --- the writing is on the wall. Running a SAFER is usually a good bet although not perfect, if the carrier is local it is even worth driving by their business address and checking activity. Google Earth will show you what the place looks like from the outside, if it's a retail plaza chances are it's a UPS Store or a FedEx Kinko's ... a residential address should be suspect although there are legit businesses running from homes. If they don't have a website or if you Google them either nothing comes up or only a link to this site or Canadian Trucking Watchdog, it's a red flag. A small carrier that talks about a network of carriers is probably suspect as well.

 

[ontime]

As much as people dont like factoring companies they are great at knowing whos paying and whos going under. Havent had any major losses since I started using a factoring company. D&B wanted 2000.00 for thirty reports a year and I had to talk them down to that price and the reports are not that accurate some times the last activity they have for a company can be as long as a year ago. Trucking/Broker companies go under in 30 days.

If you refuse to use factoring companies just remember you dont have to sell all your invoices to them . You can sell them only new clients that you have no info on. Paying %5 is better than getting $0.00 for your work and paying your AR Dept.

 

[bubba-one]

credit reports

I use First Advantage, (formerly compunet ) you buy blocks of 10 reports for $120 (12.00 each ) gives a fairly good report, if you still want more you can get the D & B report for an extra (12.00) It`s a self help on line thing that makes it quick & easy.

 

[boss]

Dunn & Bradstreet came out with a new service a couple years ago. They offer unlimited reports for about 2k - 2500 per year. I've been using it nonstop since subscribing. They ask for about 10% more each year for the service, but i am sure it saves me this fee many times over and definately saves me the frustration of having to chase deadbeats. The reports arent always perfect, so use other tools in combination, but its a really good start. I pull a report on every new carrier i use to get some background....well worth it! Just an FYI to anyone who pays per report.

 

[AccountsReceivable@DRC]

Dunn & Bradstreet came out with a new service a couple years ago. They offer unlimited reports for about 2k - 2500 per year. I've been using it nonstop since subscribing. The reports aren't always perfect, so use other tools in combination, but it's a really good start.

We also subscribe to this D&B service (DNBI) - and have for a few years now. You can access as many reports as you would like for a flat fee. International credit reports are also available.

It is a little more costly at $2500/year BUT as noted by Boss - it has saved us alot more money by avoiding extending credit to those with horrible reports. It also has an "alert" feature with your profile. If customers you have been dealing with have significant changes or drops in their credit scores - you are sent an "alert" which allows you to monitor them more closely. Legals are also noted against a potential customer when reviewing their credit with the service. Another very useful tool which is included.

 

[boss]

I definately look to see if they're being sued, or have a history of it, major indicator. All around great product, but some things need to be taken with a grain of salt and should be used with other tools, and of course, some common sense

 

[Parisite]

I been using DNBI since it came out, and they ask for increase every year, but your rep has some pull...tell her there's a recession on, they renewed us for same price as last year, but you're right they asked for 10% increase this year. But be careful, two years ago I hauled a load to MX for a new client who was scoring 85 out of 100 but turned out they were doin a midnight run....guess what I got paid. We check on here to see if there's anything, plus DNB, plus LINK. There's a lot of ways to catch guys, ask for driver's name and unit number, just by the way they respond you can smell bull sometimes.

 

[faey06]

For US Companies, I find that Free Broker Credit is pretty good. I was checking on a company that I knew was having problems & this was already being reflected on the reports from this source

 

[Parisite]

now days, I check carrier's credit before I give them freight as well. It tells you who you're dealing with and whether they're legitimate. If they have Markel insurance you know they're not a broker, Markel claims they don't insure brokers and that you must be asset based. Lots of little tricks of the trade. I'll pass on what I can for free...I just got to remember them all as they come back to me

 

[noproblembuddy]

I notice the biggest indicator that someone is going to potentially double broker a load is when they are a Canadian company that has both a Link account and a DAT account, but has no presence in the U.S. (i.e., no American office or terminal.) The other clue is that you see them posting equipment and loads out of the same area. I am extremely wary of anyone who calls up and I see "test" if they saw my load on Link. In fact, I'm trying not to use Link at all. Also beware of someone who calls up and seems magically able to do your load but you didn't match up with them (or can't find them in a carrier download) at all and when you pull their SAFER rating, they have 1 truck. It's a lesson learned from having dealt with that Nasir cat from Quebec. I still have a pile of info on him, including a copy of his cell phone bill lol.

 

[Freight Broker]

an easy cure for double brokering is to let the shipper know the carrier DOT that will be picking up. If the DOT on the truck does not match what you've told the shipper..then the truck is rejected for loading. Simple..yet very effective.

Also...make sure you tell the carrier that's what you're doing..that way if they have plans to double broker they will quickly let you know that "there truck was just covered"...works like a charm.