When you book a load with a new broker from DAT or other sources, we follow these steps to make sure we are qualifying the brokers appropriately. Pre-approved brokers will have a green check icon next to the broker MC number.
There are two main elements to review before submitting a load for approval. Those areas are:
Operating Authority
Brokers must have operating authority from the FMCSA. This means that they have met the requirements to operate as a Broker of Property in Interstate Commerce. They can have that authority suspended or cancelled if their Surety Bond isn't kept active or has claims against it.
Credit Worthiness
Brokers should be able to pay within 30 days from the date of invoice. If their Days to Pay average is above 30 days, then we may not be able to qualify them. DAT has 2 measurements in their Credit Profile section. The information comes from Ansonia Credit Data. The measurements are 'Credit Score' and 'Days to Pay'. The Credit Score is determined by a number of factors including payment trends collected from data contributors, alerts, collection agency activity, bankruptcies, etc. It's based on 100 points, so if they fall below 90, they should be considered a risk. The Days to Pay score is the last recorded DTP on record greater than 0. The minimum here should be 30 days. Past 30 days, they may not qualify.
Disqualified Brokers
Loads from the disqualified brokers are ineligible for instant payment from CloudTrucks' factoring program.