Definition
A review of a freight broker's payment history and credit before hauling a load.
Why it matters
Factors provide free broker credit checks so carriers avoid slow or non-paying brokers.
Where it shows up in a deal
A carrier runs a broker past the factor before accepting a load, usually by MC number through an app or a dispatch desk. The factor responds with an approval and a credit limit for that broker, and the limit is shared across every load you have funded and not yet collected on.
What it affects
- Approval is per broker, not per load, so open exposure from earlier loads consumes the same limit.
- A declined broker means you either haul unfactored or pass on the load.
- Checking after dispatch rather than before is how carriers end up holding an unfundable invoice.
- Limits rise as a payment record builds, so early approvals are tighter than they will later be.
A worked example
A factor approves a broker for $25,000 of open exposure. With $21,500 already funded and uncollected, a $4,800 load would take exposure to $26,300. The load is declined or only partly funded until older loads clear.
The common mistake
Related terms
- Freight FactoringFactoring of trucking freight bills, usually with same-day funding after delivery.
- Concentration LimitA cap on how much of a facility can be tied to a single customer.
- DebtorIn factoring, the customer who owes payment on the invoice.
- Non-Recourse FactoringFactoring where the factor absorbs losses if an approved customer becomes insolvent.
Questions about how broker credit check affects your facility?
Call (929) 658-8087 or request a written quote — no obligation, no credit impact.
