Freight Broker Credit Checks: How to Verify Days-to-Pay (DTP) and Avoid Uncollectible Invoices

One of the most catastrophic risks for an independent motor carrier is hauling freight for a broker that defaults, closes its doors, or engages in double-brokering fraud. Before accepting any rate confirmation, carriers must execute a 2-minute credit verification to ensure the broker maintains active authority, a solvent $75,000 surety bond (Form BMC-84/85), and an acceptable Days-to-Pay (DTP) score.

1. Key Credit Metrics to Audit

Days to Pay (DTP): Top-tier brokers pay within 21 to 30 days. Brokers averaging 45+ DTP indicate severe cash flow strain and high risk.
Credit Score / Rating: An "A" or "B" credit grade (90+ on Ansonia or TransCredit) confirms strong payment history. Avoid "C" or "D" rated brokers unless using non-recourse factoring.
FMCSA Licensing & Insurance (L&I) Search: Verify the broker's MC number on the official FMCSA portal to confirm their $75,000 freight broker bond is active with zero cancellation notices pending.