Operating Capital

[TRUCKIT]

If you are a Load Broker operating with less than 2 months of sales as operating capital then you are putting Carriers at risk. No Broker should bite off more than they can chew. Slow down and build up capital before you keep booking freight. As a Broker Owner you personally have very little to lose compared to the Carrier. For those Carriers accepting freight from other Carriers stop and think about it for a second. Unless the Carrier is well established and/or has adopted strict credit controls they are most likely going to use you as an unwilling provider of operating capital (interest free). Brokers and Carriers are neccessary in this business we have all made a choice to be here. Do your homework and use due diligence when operating your business. Be strict on granting credit and cut off customer's who do not pay within terms. If you are not prepared to do this then I suggest a speedy exit from this industry to protect all players. Why is it Brokers and/or Carriers continue to complain about Client's taking so long to pay. They make it sound like they are doing you a favour when they pay you in 35-45 days or before they get paid. Operating funds need to come from somewhere folks! Let's all ensure our Client's have the means to pay on terms. Oh yeah by the way I am a Carrier who also operates a Brokerage.

Thanks for letting me rant.

 

[needtoknow]

very well said

I'm also a Carrier who operates a brokerage and beleive we need to regulate ourselves. Its to easy having the LINK to be able to start a brokerage business with little money. Imagine if Real Estate agents who are brokers were working without a license. We need to govern ourselves and get the rift-raft out.