Everyone has great credit on Loadlink!

[Gord M]

Has anyone else noticed some terrible payers now have great credit on Loadlink? We have a dozen or more carriers/freight brokers in the Brampton area especially that owe us for loads 100 days plus. Yet when i check thier credit on the link these people look like fortune 500 companies. One in particular we did work for 140 days ago, have no funds but will try to pay us in 2 weeks has a good Equifax and a TCC rating of 92. They can't pay anyone right now but thier credit is "green". I did a small sampling of 909 clients on loadlink which was every company whose name started with an A or a B, only 9 companies had credit ratings in "red" which is a warning to stay away from them. So according to the credit information on Loadlink only 1% of the subscribers are slow payers. Can anyone shed a little light on why this reporting system doesnt work?

 

[Freight Broker]

I can help you with that. First off, very few people report payment history accurately and many if not most report nothing at all. So any information available is going to be inaccurate or simply WRONG right out of the gate. I keep very careful records of when I receive invoices, when my checks go out in the mail and when the amounts are withdrawn from my account. To make matters worse, the credit reporting agencies are mostly chicken shits who will not take any responsibility for what they report. So instead of being useful and reporting accurately they take a "middle of the road" approach by reporting most at 30 days unless there are obvious issues. I get reported at 30 days even though I pay my bills in seven. It pisses me off. And likewise, the schmuck who pays in 45 days gets something like 30 to 35 days because, again, people are too lazy to report accurately and the reporting agencies don't want to rock the boat with really bad reports that might invite legal action.