To operate effectively, freight logistics, lead generation, and transportation management rely on many collaborative processes and partnerships. Freight credit and underwriting are among the most essential yet often overlooked methods within the modern supply chain network. Accessing digital freight credit is critical to ongoing growth and recovery, as well as more reliable lines of transportation and shipping. So, to answer the questions, “what is digital freight credit” and “what impact does it have on the modern supply chain?”, read on.
What Is Digital Freight Credit and Underwriting?
Credit and underwriting services are essential to improving day-to-day operations and processes that require stable cash flow and solid financial backing. Freight brokers need to secure backing and freight credit and underwriting services to remain profitable and competitive. Essentially, an underwriter is a financial expert trained to inspect company and individual finances. Thus, they determine how much risk a lender would be saddled with if they decide to give you a loan. A digital freight credit expert will evaluate your credit history and financial standing with a close inspection of your financial records. Then they can better anticipate how much of a loan you can quickly and securely pay back, financial support that is more vital than ever. Essentially, they provide access to transportation and freight financing services.
According to a Forbes report in mid-2020, “the COVID-19 pandemic is increasing the need for digital freight solutions…The need for real-time capacity commitments is [forefront] for certain industries such as CPG, food & beverage, grocery, and pharmaceuticals. With capacity constraints in certain lanes, customers can now examine how to move goods between private fleet, common carriers, or digital freight marketplaces.”
As recovery continues across the network, freight credit and underwriting becomes critical to ensure shippers and transportation trucking companies of all sizes keep up with growing market trends and customer demands.
How Digital Freight Credit and Underwriting Lowers Risk
At the heart of the matter, knowing what is digital freight credit and underwriting services and how they can improve digital freight services is essential. Shipper, broker, and carrier agreements are vital to the modern transportation and shipping network. Companies, of course, want to lower risks associated with freight transportation and digital freight credit access. Underwriting can help lower risks and give shippers more security by improving overall access to tools and services to improve end-to-end financial security. Freight credit and underwriting provide access to a pre-qualified shippers network and improve general access to high-paying loads. Integrating transportation management systems make it much easier to reduce credit risks and collaborate with 3PLs and other partners within the industry.
Additional Benefits of Digital Credit Assessment and Underwriting
Credit assessments and underwriting services related to digital freight credit security can provide several other benefits for freight brokers. Mitigating risks and boosting financial stability and backing with freight credit and underwriting services can benefit transportation companies, carriers, shippers, and brokers alike in the following ways:
- Lowering back-office costs and expenses that can bleed finances and affect cash flow.
- Providing better freight invoicing and processing services to prevent payment delay pressure.
- Offer data-backed creditworthiness assessment to access more financial backing services.
- Promoting faster payment with reliable shippers to further strengthen shipping relationships.
- Give brokers less worry when accepting loads from shippers by lowering financial risks.
- Allow faster access to funds to pay truckers/drivers and improve network operations.
- Giving higher driver satisfaction rates and better compensation to retain driver loyalty.
- Overall improved operations with short- and long-term financial planning.
Mitigate Your Risks With ComFreight TodayImproved freight credit and underwriting services based on data and personalized considerations can give supply chain management the financial backing needed to maintain a competitive advantage while keeping their risks lower overall. Answering the question, “what is digital freight credit?” might be different for every company and supply chain network, but the right partnership will give brokers the backing and support they need. Connect with ComFreight to find the best credit and underwriting services for your financial backing and management needs. And for the best digital freight credit and payment processing in the industry, check out a demo of how HaulPay gets brokers paid faster.