How Can Freight Factoring Mitigate Risk?
Using Freight Factoring Resources to Mitigate Bad Debt
Every load you haul is a source of revenue. It is also a potential credit risk. Before you haul a load acquired from a load board or your first load from a new customer, it is best practice to run a credit search. View payment history and the business credit rating to verify your debtor’s ability to pay and help avoid bad debt.
A reputable freight factoring company will have an online tool to perform quick and easy credit searches. The best factoring companies provide unlimited search capability as a free service.
Figure 7-3: Example Search Result from a Factoring Online Credit Search Tool
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