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The Importance of Good Credit
The Importance of Good Credit
Having good credit can make conducting business much easier. Your credit score translates to your degree of financial reliability, meaning how likely you will be to pay back debts on time and in full. The higher your credit score, the greater the chance is that you will be offered the loan or advance that you need. With bad credit, it is hard to secure any kind of advance because lenders are nervous that they may not be paid back. Having good credit can therefore help you stand out from the crowd and give you a competitive edge when applying for your next loan or line of credit.
Good Credit and Factoring
Truck factoring is typically broken down into two distinct types: non-recourse and recourse. With non-recourse factoring, the factor company assumes the credit risk on your behalf. If a broker cannot pay a bill to you the truck carrier, then the factor is financially responsible for the outstanding balance.
Recourse factoring is the second type of factoring available to truckers. This type requires you the motor carrier to assume financial responsibility in case the broker or shipper cannot pay. Because you are taking the risk instead of the factoring company, you will owe fewer fees, thereby saving you money in the long run. This is an ideal option for some truckers, but it is only available to those with good credit.
Performing Quality Credit Checks
While your credit score is important, it is equally important to ensure that you are doing business with companies that also have good credit. Getting into a trucking deal with a broker or shipper that will not pay its bills will only lead to financial trouble for your business. At TBS Factoring Service, LLC, we perform quality credit checks on any business you are considering carrying for. Best of all, our credit checks are 100% free, allowing you to check the credit status of any broker or shipper you may work with.
Contact Us
For more information on truck factoring options and how we can connect you to the best factoring option for your business needs, contact the freight factoring experts of TBS Factoring Service, LLC, at 800-207-7661.
