TransCredit Credit Information
We are improving the financial integrity of the POSTED LOAD system on the Sylectus Load Board.
Once implemented, users will now have better certainty about how they will get paid on loads they bid on.
On Monday, June 14, 2010, we will start to show the "days to pay" and "credit rating" financial information for every posted load on the system. If you have any concerns about the data we are going to show about your company, you need to contact TransCredit and have them do additional investigation.
TransCredit
Phone: (800) 215-8448 ext 113
9485 Regency Sq. Blvd # 102
Jacksonville, FL 32225
www.transcredit.com
The following information will be shown for every posted load:
- Days to Pay – this is the average number of days it takes for this company to pay an invoice.
- Credit Rating – this is a rating between 1% and 100% of the credit worthiness of the company posting the load. 1% is terrible. 100% is perfect.
See below for definitions on how these numbers are collected and reported.
These two pieces of financial data are collected and managed by TransCredit who specialize in credit worthiness of transportation companies. For more information about TransCredit, please go to www.transcredit.com.
Before we publish your numbers on the posted load system, for the next seven days, Sylectus Subscribers will have an opportunity to review their TransCredit calculated "Days to Pay" and "Credit Rating" by doing the following:
- Go to main menu USERS and sub-menu "Company Profile".
- Scroll down in the "Company Profile" section to the "Accounts Payable" area.
- Your TransCredit "Days to Pay" and "Credit Rating" information will be shown in the "Accounts Payable" section.
- If we have no "TransCredit" data on your company, the system will show "Not available from TransCredit" in these fields.
Here is a sample screen shot of the "Company Profile" section.
Remember. Sylectus DOES NOT create or manipulate this credit information. We only purchase the information from TransCredit and share it with you. Please DO NOT call Sylectus to complain about your TransCredit ratings. You must contact TransCredit instead.
TransCredit Credit Score Explanation
The Transportation Credit Score is based on over 24 years of analysis of your ability to pay. Some of the factors used in compiling the TransCredit Score include: Payment Trends, Time In Business, Financial Strength and Collection Activity.
It is important to know:
- TransCredit provides this information to the trucking industry at large: More than 2.6 million credit scores are accessed monthly by more than 34,000 truck lines, brokers, factoring firms & load-posting services in the US and Canada.
- The Credit Score IS NOT YOUR PAYMENT TREND nor is it an arbitrary number created by TransCredit. It is an index that takes a number of your business and industry factors into account. Most importantly: The years you have been in business – the years you have done business with your carriers and/or suppliers – and of course the experience your creditors have had when they have dealt with your company.
FACTORS THAT INFLUENCE YOUR CREDIT SCORE AND WAYS TO IMPROVE THEM:
Years in Business: Although you have little control over this factor, please remember that if you have been in business for less than 3 years, your risk analysis might well be lower than you might think your credit history would indicate. This is because industry-wide, most business failures occur within these critical first 3 years. During the first 5 years your Credit Score is adjusted upwards every 6 months to give you maximum benefit.
Carrier/Supplier Longevity: This is a major failing on many Credit Scores. It is always BEST to supply references that you have actively done business with for the longest time. Consider that YOU are checking credit on a shipper who has been in business for 10 years, yet they cannot supply references older than 1 yr – makes you wonder what happened to those brokers or carriers they used for the first 9 years?
How Much Business Do You Do With The Carrier/Supplier: Your best Credit Score comes from references that you give a substantial amount of business. If you average $1,500/month with your references and ‘Example Brokerage’ averages $45,000, they will have a better Credit Score in that area because they have demonstrated greater financial strength. So bigger is better! Provide active references that you do the most business with and you will have a better Credit Score.
Payment Trend, aka Carrier/Supplier Experience with your company: This is always a big one, but must be clearly understood. If you have a 25 day payment trend and a low Credit Score (high risk) you may be adversely affected, but if you have a high Credit Score (low risk) and a 50 day payment trend you will be adversely affected even more. The secret here is balance-there is little bonus for paying in less than 30 days, but great penalty for paying over 45.
Example: 3.5 yrs in business + 2 yrs average reference longevity + $5,000/mo average reference business + a payment trend of 35 days or less = Credit Score of 82. (Very good)
In Summary, the Credit Score is not arbitrary. This Score is the result of the way you manage your business. Only you can invest the time and effort to ensure that this score properly reflects your business.
FREQUENTLY ASKED QUESTIONS:
Q: Are other factors used in compiling the Transportation Credit Score?
A: Yes, other factors with less impact are also included in your Credit Score.
Q: Can TransCredit have a Credit Score on my company if I have never submitted any information?
A: Yes, just like on your personal credit report, TransCredit receives information from carriers and/or suppliers who report to us on a regular basis. Public records, suits, legal filings and/or refusal to supply credit information when asked may affect your score.
Q: Can I dispute information I find on my TransCredit report?
A: Yes, remember that TransCredit does not make credit, we simply report information gathered by us. Although we always ask references not to report adverse credit if it involves claims or other legitimate disputes, it sometimes happens.
Simply email, fax or phone your view of the disputed item, including any supporting documents to TransCredit. TransCredit will contact the reference and verify the correctness of your dispute. We will report the results to you.
Q: Do I get credit for time in the industry although I have just started my business.
A: Not generally. Why- because the business must stand on its own financially, just because you were a great salesman or driver, etc, doesn’t make your business a credit worthy risk. On your credit report – we do report this type of information, but it does not affect the Credit Score.
Q: If I am a truck line in business for a long time and begin a brokerage do I get benefit of the parent company?
A: Yes & No! If the brokerage is a part (division) of the truck line – Yes. If the brokerage is set up as a separate corporation – No. Why? Simple, you can bankrupt the brokerage without any financial penalty to the truck line; it has no obligation to support the brokerage even if it owns all the stock.
On your credit report – we do report this type of information, but it does not affect the Credit Score.