Load link and Equifax

[Rob]

We see all the time in this forum carriers getting ripped off buy scam artist so called brokers and carriers that Loadlink has let on to their system because they can pay the bill. So we as carriers pay the extra to link to get things like Equifax credit ratings etc.
How much weight can you really put into Equifax when today CH Robinson is showing up all red at a 99 days past due and a 36 risk which basically says they are as good as out of business but just do not know it yet?? Yet another carrier that is notorious for being slow payers show a 23 and 12 and you will be lucky to get paid in 100 days?

I see on the new update that they have dropped Duns and Bradstreet and gone with Transcredit.. here is hope they are more accurate then the other two link has been offering us.

Just a rant for today hoping today is better than yesterday because it sucked..

 

[ShawnR]

for once I agree with you Rob, it shows some great numbers for horrible companies, then shows our company as slow payers or not that great.

then we turn around and have a 103 Transcredit rating... (the max being 100 but we have 3 extra credits over)

 

[loaders]

Any credit reporting company is only as good as the information they receive. If the only info they get is from creditors, who for whatever reason were not paid in a timely fashion, then the credit score will be low. It is important to report all transactions, not just the bad ones to these credit reporting services so that a more accurate picture can be made available. It is also a good practise to review your own score with these firms on a regular basis and correct any inaccuracies that appear. Credit reporting agencies are only one of many tools to use when trying to determine the credit worthiness of a new client.

 

[JRod]

The majority of credit reports are based off of information reported and the only time that someone usually reports is if there was an issue. Lots of times, there was a completely legitimate explanation for that issue but that is not reported, just that there was a problem. That lowers the credit score so it looks bad. People can also pay to boost their credit score, kind of a stupid thing as that is basically extortion.

 

[ShawnR]

yeah but they should require all companies to submit their own credit references before destroying their credit ratings.

 

[loaders]

You are able to submit your own payment patterns to most of the reporting agencies. Again, the information they give out is entirely based on what they receive. Bad stuff in.....bad stuff out. I would encourage anyone who is unsure of or not happy with their credit score to start supplying some of the "good stuff" so that their score more accurately reflects their true payment patterns. Of course if the "good stuff" isn't all that good, then you can't really complain about the info the agencies give out.

 

[theman]

The problem is that the information has to come in from somewhere. Most of the trucking guys out there are small and don't have someone sitting around that can feed info on their accounts receivable to D&B or Equifax or anyone for that matter. The first things to get fed to them would be their bank obligations and their utility bills, and with Link being part of it, probably their subscription to Link. The larger the company, the more accurate the result though.

I've only noticed the credit thing today. The info is a joke because it shows well known trucking companies with revenue between $1M and $2M a year. Really????

 

[loaders]

Absolutely right theman! "Garbage info into the system.....garbage info out". I guess it is safe to say that credit rating reports are only a part of the decision making process when granting credit.

 

[AccountsReceivable@DRC]

I would encourage anyone who is unsure of or not happy with their credit score to start supplying some of the "good stuff" so that their score more accurately reflects their true payment patterns. Of course if the "good stuff" isn't all that good, then you can't really complain about the info the agencies give out.

Building credit can be done - no matter how big or small the company. You just need to know WHO reports - and start there. Credit cards - namely Capital One (U.S. credit card) - always report. Gas cards - that's a biggie. ETR 407 is a notorious "reporter" on a monthly basis. We all know if you screw 407 - you'll get it back "10-fold" with them. Utilities report - hydro is another that submits on a regular basis. They are one of the worst if you owe them - and with their high interest penalties - you don't want to get behind with them. So open a few accounts with a small limit - get yourself a transponder - and start showing you can pay. This can also help repair unfavorable credit - and in a short amount of time.

I've never encountered a D&B report on Link that was way off to the D&B subscription I have access to. We subscribe to the DNBI program on a yearly basis. It's expensive..yes...but well worth it. I always check both the Link D&B report AND my DNBI when considering a new account. And they are usually close in their numbers. In my opinion one is pretty safe to go with the Link report...but as we all know...that isn't the only resource one should be using for extending credit to a possible new customer. There are many other factors to consider.

I agree with Loaders - if you're credit is fine and you pay your bills on time...you shouldn't have anything to worry about when it comes to your business credit report. And anyone who is familiar with credit and reading reports accurately is fully aware that 1 or 2 "red numbers" shouldn't "make or break" opening an account. We all have "straggler" payments for 1 reason or another, claims or issues "pending" resolutions with other parties. But with that said - if I open a report and the whole thing is full of "red"...I'll simply be taking a pass on you...and your business....