Blog

The logistics industry faces a growing menace - double brokering. 

‍

This deceptive practice involves fraudulent intermediaries, posing as genuine carriers or brokers, who subcontract jobs without the shipper's awareness or approval. The repercussions of this fraud include delayed deliveries, lost revenue, and potential legal complications.

‍

Recent reports indicate a concerning trend: TIA has reported a staggering 200% increase in double brokering cases last year. As noted by Anne Reinke, TIA's President and CEO, in an interview with Vishnu Rajamanickam, an oversaturated market has led to "too many carriers chasing less freight," contributing to double brokering.

‍

The stakes are high. 

‍

Double brokering is not just deceitful - it's illegal. The practice can cost your freight brokerage time and money and tarnish your reputation. 

‍

This article aims to arm you with crucial information to identify and prevent this industry menace. We'll explore the mechanics and consequences of double brokering, equipping you with the knowledge to safeguard your operations and maintain the industry's integrity.

‍

‍

What is a double broker? 

‍

A double broker is a fraudulent intermediary who claims to be able to arrange transportation services but instead subcontracts the job to another carrier or broker without the shipper's knowledge. 

‍

There are two common instances:

1. Double broker posing as a freight broker.
2. Double broker posing as a carrier.

‍

Double Broker Posing as a Freight Broker

‍

There are instances of double brokering when a broker, who has already agreed to transport a shipment, gives the job to another broker without the permission or knowledge of the shipper. The result is a long chain of intermediaries, each taking a cut of the profits, ultimately reducing the carrier's earnings and increasing the shipper's costs.

‍

‍

Double Broker Posing as a Carrier

‍

Double brokering can also occur when a broker arranges for a "carrier" to transport a load, but that "carrier" then outsources the task to another carrier for a reduced rate. The first carrier keeps the price difference without informing the initiating broker about the change. As a result, the broker remains unaware of the second carrier's safety record, insurance coverage, and other potential legal issues until problems arise. 

‍

In some cases, the carrier that transports the cargo doesn't receive payment from the carrier involved in double brokering. If the shipper who initiated the shipment receives complaints about non-payment, it can result in a complicated dispute involving three or four parties, including the broker.

‍

‍

Identifying Double Brokers  

‍

Spotting and preventing double brokering is an essential skill for all stakeholders at every level of a company. By being watchful and proactive, industry participants can foster an environment of trust and fairness, safeguarding the industry's future and reinforcing its reputation for excellence.

‍

Vetting your Carriers 

‍

To avoid double brokering, working within your established carrier network is preferable. However, sometimes new clients require carriers out of network with specific equipment. It is crucial to evaluate new carriers thoroughly.

‍

There isn't a single tell-tale sign of a double broker, but certain key factors can help differentiate between potential double brokers and reputable carriers.

‍

Suggested Vetting Criteria:

1. Business longevity - The easy setup of carrier authority leads to new MC numbers daily. Opting for carriers with longer business histories helps minimize double-brokering risks and promotes the safe transportation of goods.
2. Safety record analysis - Carriers with multiple trucks should have had at least one inspection in the last year.
3. Business address verification - Cross-check their address using tools like HaulHero and TIA Watchdog to ensure it's not a non-business location like a convenience store. 
4. Phone number and email validation using SAFER or Carrier 411 - If there's a mismatch, contact the listed number to discuss the load due to potential identity theft concerns.
5. DAT Directory Seat - Refer to the DAT directory to verify an MC's DAT seat.

‍

Though not exhaustive, this list serves as a solid foundation. Freight brokers should consider using tools like Carrier 411, Highway, TIA Watchdog, RMIS and Freight Validate. Each brokerage should develop a specific vetting process for new carriers. We can help eliminate double brokers and foster collaboration with authentic, industrious logistics companies by remaining diligent.

‍

Common Red Flags of a Double Broker

‍

Navigating the logistics industry requires keen attention to potential red flags that might signify the presence of double brokers. Here are some warning signs to watch out for and the appropriate steps to take if you encounter them:

‍

Red Flag: Call Center Background Noise

‍

You're talking to a carrier or dispatcher about a load, and the background noise sounds like a call center. For carriers that claim only 1 or 2 trucks in their fleet, it's even more suspicious if it sounds like a call center. 

‍

What to do: Do your research. Look for inconsistencies in their authority length, number of power units registered, number of inspections, or reports on Highway, Carrier 411, or TIA Watchdog.

‍

Red Flag: No haggling

‍

Negotiating rates is a common practice in the logistics industry. If a carrier does not negotiate, particularly when offered a low rate, it's important to be skeptical, even during a freight recession.

‍

What to do: Run the lane in DAT or your preferred load board to see if somebody reposted it.

‍

Red Flag: Driver using gmail

‍

The driver requested you send the carrier packet to a random Gmail instead of a company email. Be more suspicious when the driver is part of a larger trucking company or fleet. 

‍

What to do: Call the carrier's company to verify the driver is associated with them and that the email is correct.

‍

Red Flag: Driver refuses to talk on the phone

‍

Verifying the driver and carrier before a load is good form. However, if the driver refuses to talk on the phone or a dispatcher refuses to give you driver information, you might have a double broker. Texting and email ONLY are big red flags. 

‍

What to do: Call the driver's phone number and see if a voicemail is set up. Many double brokers use free texting apps like TextNow or Google Voice for their drivers' numbers. Calling those will send you straight to voicemail or won't have a voicemail created.

‍

Preventing Double Brokering for a More Trustworthy Logistics Industry

‍

Double brokering presents a significant challenge within the freight and logistics industry. It undermines trust between carriers and brokers and can lead to a host of issues. Double brokers add an unnecessary layer of complication, often leading to inefficiencies and disruptions that harm service providers and clients.

‍

However, it is essential to remember that the burden of combating double brokering does not lie solely with individual businesses. Double brokering is an industry-wide issue that calls for an industry-wide response. We urge all players in the freight and logistics sector to take a stand against double brokering by investing in practical tools and resources, developing strict vetting criteria, and maintaining a culture of transparency and ethical practice. Together, we can make strides in eradicating double brokering and fostering a more trustworthy and efficient logistics industry.

Brokers from all over the country are beginning to experience shrinking margins. With the uncertainty of the economy, margins have been declining for the last several years, and brokers are struggling. 

‍

On top of these recent declines, a recent sentiment analysis by Freight Waves shows broker confidence in near-term profitability approaching all-time lows.

‍

(Image courtesy Freight Waves)

‍

This lack of confidence can be attributed to a myriad of issues in the freight industry, such as overcapacity, carriers passing increased costs along to brokers, declining spot rates, and more.

‍

Below we’ll review four ways brokers can stay lean by cutting costs and improving efficiency, adding new revenue sources, and expanding their business to maximize margins.

‍

1. Maximize employee efficiency 

‍

It’s impossible to ignore employee inefficiencies when speaking about shrinking margins. Most brokerage employees spend significant time on mundane tasks that distract from more important activities that drive revenue.

‍

This is especially true when personnel who could be finding new business are instead bogged down with automatable tasks such as data entry or document organization.

‍

Action: How to Improve Employee Efficiency

1. Automate Manual Tasks: Implement automation tools into your business to dramatically reduce the amount of time employees spend on data entry, document sorting, and more - freeing up their time to focus on activities that add value to the business.
   
   
2. Prioritize Software Integrations: Many brokers are stuck using outdated software systems that aren’t integrated, causing slow and painful processes. Consider switching to new providers that integrate with your most important tools, such as your TMS,  accounting software, factoring company, and loadboard.
   
   
3. Prioritize User-Friendly Tech: When changing or updating your software systems, ensure you’re choosing software that values simple, user-friendly interfaces. Transitioning to new software can be challenging for everyone involved, and software tools will only improve your operation if your staff uses them.
   
   
4. Use the tools available to you: Most brokers use a factoring company to ensure their carriers are paid quickly and efficiently, but don’t use all of the features they’re already paying for. Leveraging your factoring company’s invoicing and collections process can improve efficiency and take tasks off the plate of employees.
   
   
5. Leverage AI when possible: With new AI tools coming onto the market, there are many ways to improve employee efficiency and even eliminate some tasks. For example, with Denim’s AI-powered auditing system, manual document auditing can be almost entirely automated.

‍

Result: By reducing, automating, and eliminating time-sucking tasks like these, you can ensure your best employees are spending more time focused on sales and client engagement, directly contributing to improving your brokerage’s margins. 

‍

2. Monetize QuickPay 

‍

Brokers aren’t the only ones experiencing tight margins - carriers are starting to feel the pain too. These increased carrier costs are then passed back to brokers, making the problem even worse. 

‍

With these increased costs, brokers should consider adding a new revenue stream through a QuickPay fee - allowing carriers to choose between faster payments and lower fees. 

‍

Action: How can brokers counteract shrinking margins caused by increased carrier costs?

‍

Brokers can counteract increased carrier costs by monetizing quickpay. This gives your brokerage a new revenue stream by charging a fee for faster payments. 

‍

Carriers who are increasing their prices are given a choice: cut into that margin to receive payment faster, or maintain their margins and stick with an extended payment schedule.

‍

Note: Some factoring companies such as Denim, don’t charge brokers a fee for making QuickPay available to carriers, meaning brokers get to take home 100% of the proceeds for any QuickPay revenue.

‍

Result: Adding a QuickPay fee helps brokers improve their margins by adding a new revenue stream that is 100% profit. Many carriers are used to QuickPay fees, and will often choose to pay a small fee to receive payments in days instead of weeks. This new revenue stream can be essential in combating shrinking margins for brokerages.

‍

3. Negotiate Payment Terms With Clients 

‍

Rates are only one piece of the puzzle when it comes to negotiating contracts with your shippers. Negotiating payment terms can be just as lucrative as negotiating rates for your business. 

‍

If your shipper’s payment terms are over 30+ days, you have some negotiating to do. Money in the bank better serves your brokerage instead of money held up by a client. Borrowing money against these shippers through invoice factoring is also more costly the longer the payment terms. These payment terms can have a significant impact on your margins and cash flow, and only exacerbate the issues caused by outside influences.

‍

Action: How to negotiate payment terms with customers to improve margins

• Update contract terms to improve cash flow:some text
  • Most brokers are stuck with contracts that encourage customers to slow-walk payments to brokers, leaving them stuck holding the bag when carriers need to be paid. 
  • Updating your contract terms to encourage faster payments can massively improve your cash flow, even if your brokerage needs to offer customers a slight discount to do so.

Every broker knows that keeping a close eye on your cash flow is an essential piece of the business. Without careful monitoring, it’s easy to let costs balloon out of control and for economic forces to have their way with your business.

‍

A Profit and Loss (P&L) Statement is a tool used by brokerages of every size to monitor and understand the financial health of your business. This document may also be referred to as an income statement, and provides a clear snapshot of your company’s revenues and expenses over a specific period. This makes a P&L statement a vital tool to gauge your operations performance, make informed decisions, and plan for future growth.

‍

Read on to learn how to put together a P&L.

A line of credit has traditionally been the most appealing financing option for the logistics industry.

‍

Until now. 

‍

Rate hikes by the Federal Reserve over the last three years have made it more challenging for businesses including freight brokers, fleets, and logistics companies to access affordable lines of credit.

‍

In light of these tighter credit conditions, finding alternative financing solutions is crucial to ensure steady cash flow and remain competitive. Freight factoring emerges as a competitive option that offers more than just financing for logistics businesses. 

‍

Line of Credit Drawbacks in 2025

‍

The Federal Reserve (Fed) raised interest rates 11 times between March 2022 and July 2023 from a low 0.08% to a 21 year high of 5.5%. The goal of the hikes was to reduce inflation, however inflation remains higher than anticipated in 2025. As a result, the Fed plans to hold rates steady for now. 

‍

 So what does this mean for you and your financing options? A lot.

‍

The federal funds rate is the interest rate at which banks lend money to each other overnight. Higher federal funds rates make it more expensive for banks to borrow money from each other. As a result, banks usually pass on this increased cost to their customers by raising interest rates on various loans, including business lines of credit.

‍

There are 3 major impacts that the increasing rates have on businesses applying for a line of credit.

‍

1. Higher borrowing costs

The interest charged on a line of credit will depend on the prime rate and an additional percentage determined by the lender, known as the plus.

‍

The prime rate is the interest rate commercial banks charge their most credit worthy customers. It is a benchmark for various types of loans. And the prime rate is influenced by, you guessed it, the federal funding rate.

‍

Banks have been increasing prime rates as the Federal Reserve has increased their funding rates. Currently, the prime rate is 8.5%, up from 3.5% in April of 2022. Any new lines of credits opened today would be paying 142% more interest than two year ago.

‍

The plus percentage added to the prime rate is determined by the lender and is based on your creditworthiness, business financials, collateral etc.

‍

In our current high-interest rate environment, you face higher borrowing costs, affecting your cash flow and overall financial health.

‍

2. Tighter credit conditions

Banks have become more cautious with their lending practices in response to a higher federal funds rate, making it more challenging for businesses to obtain a line of credit and secure favorable terms.

‍

Due to increased risk perception, lenders are reducing the amount of credit they are willing to extend. The Federal Reserve Bank of Dallas surveyed 71 banks in March of 2023, and found a significant drop in lending. A smaller credit limit makes scaling your brokerage difficult.

‍

Since banks are lending less money in this economy, they are imposing tighter requirements. You can expect requests for higher credit scores, robust financials, more collateral, and lower loan-to-value (LTV) ratios.

‍

Even if your brokerage qualifies for a line of credit, you will still face stricter contract terms and conditions. Lenders may offer variable rates, shorter loan terms, impose additional fees or penalties. They may also include more restrictive covenants in loan agreements to manage the increased risks associated with high borrowing costs and protect their interests.

‍

3. Variable interest rates

Variable interest rates appeal to borrowers when market interest rates are declining (like in 2020-2021). However, borrowers may face higher payments if market interest rates rise, making it more expensive to repay the loan.

‍

Banks are more likely to offer variable rates in this market because the Fed will likely continue to increase rates until inflation stabilizes, likely by the end of 2024.

‍

The variable interest rate is adjusted at regular intervals, such as monthly, quarterly, or annually. The loan agreement specifies the adjustment period and determines how frequently the interest rate can change.

‍

Lines of credit with variable interest rates can involve more uncertainty than fixed-rate loans or financing options like factoring.

Factoring is a Competitive Alternative to Line of Credit  

‍

In today’s uncertain financial climate, factoring has become a more attractive and reliable option for trucking businesses seeking financing.

‍

Freight factoring involves selling your accounts receivable to a factoring company in exchange for immediate cash. Funds are accessible without incurring debt, making it a more attractive option in any economy.

‍

Unlike lines of credit, agreed upon factoring rates do not change based on market conditions. For example, a 3% factoring fee will remain the same regardless of whether the federal interest rates increase or decrease. Factoring rates are typically volume or time based and can vary between companies. But they remain consistent once established.

‍

Freight factoring also provides several benefits, including quick access to cash, simplified approval processes, and no need for collateral, making it an accessible financing option in various market situations. Additionally, factoring companies offer support for your back-office operations in several ways.

‍

The top five benefits of factoring include: 

1. Improved cash flow: Access funds within 24-48 hours vs. waiting 30+ days
2. Protect your business: Free credit checks on customers to avoid risky deals and double brokers.
3. Automated invoicing and collections: Save hours with auto-generated invoices and managed collections.
4. Freight Payment Management: Schedule carrier payments, including QuickPay
5. Scalability: Factoring services grow with your business, allowing you to access more funds as your revenue increases.

‍

Factoring is Just As Flexible as a Line of Credit 

‍

A common misconception is that factoring is restrictive and costly compared to a line of credit. However, this couldn’t be further from the truth at Denim.

‍

Denim’s factoring solutions are among the most flexible and comprehensive in the industry, offering customizable carrier payments, invoicing, and collections. Client’s only pay for the capital they’re using at any given time, which mirrors the flexibility of a line of credit without the need to go through a bank.

‍

With Denim’s factoring solutions, you are in control of your rate. Here are two ways you can influence your rate: 

• Flex Factoring - Denim offers prorated discounts for delaying advances - yours and contractors.
• DSO Pricing - Denim adjusts the factoring fee based on your shipper’s days to pay. The rate is broken into a daily rate, so you only pay for the days you need to borrow. 

‍

By leveraging these options, Denim clients can effectively manage their rates and only borrow what they need, ensuring cost-effective and flexible financing. Use our factoring calculator to see how you could save today! 

‍

Factoring vs. Line of Credit

‍

This table provides a high-level comparison between factoring and lines of credit for your business. While factoring offers faster access to funds and additional support services, lines of credit may provide more flexibility in terms of fund usage.

Breaking Down the Costs

‍

Eliminating all other considerations, let’s take a look at the cost of factoring compared to interest on a line of credit.Let’s assume a freight brokerage is moving a $5,000 load with net-30 day payment and the carrier agrees to do it for $4,500.

‍

SCENARIO 1:

Factoring at a 1% rate

If the factoring company charges a 1% factoring fee on the invoice total. We can calculate the factoring fee for this load as follows:

Factoring fee = $5,000 * 0.1

Factoring fee = $50

With factoring the freight broker would receive$5,000 - $4,500 - $50 (factoring fee) = $450

‍

SCENARIO 2:

Line of Credit at 13%

(8% prime rate + 5%)

If the freight broker uses a line of credit with an interest rate of 13% to pay the carrier, the interest cost is calculated as follows:

Interest cost = Principal amount *(Interest rate per year / 365 days) * Number of days

Interest cost = $4,500 * (13% / 365) * 30

Interest cost = $47.88 (approximately)

The interest cost for the freight broker using a line of credit at 13% to pay the carrier $4,500 for 30 days would be approximately $47.88.

With the line of credit, the freight broker would receive:

$5,000 - $4,500 - $47.88 (interest cost) = $452.12

‍

While the costs are within a few dollars of being the same, the major value add for brokers using factoring now over a line of credit is access to smart freight payment features through their factoring provider. Big banks do not have freight and logistics specialization and will never provide niche services like invoicing, collections, reporting, and carrier document collection. Factoring will always remain accessible regardless of credit score and the ideal route for freight companies to receive fast, reliable financing.

‍

Grow Your Freight Brokerage with Denim

In the current economic climate, freight factoring and a line of credit have comparable borrowing costs. However, factoring is a more favorable and accessible financing solution. 

‍

Factoring offers several advantages, including faster approval times, more accessible eligibility criteria, and immediate access to cash upon selling invoices. Factoring companies also provide valuable services like invoicing and collections support, credit checks, and freight payment management.

‍

Most importantly, factoring fees are not directly tied to interest rates. With Denim, factoring rates mirror a line of credit providing the flexibility businesses need to scale. 

‍

Securing a line of credit in a high-interest-rate environment can be more challenging due to stricter lending standards, reduced credit availability, and potentially unfavorable contract terms, such as variable interest rates.

‍

Don’t let rising federal interest rates derail your freight brokerage’s success. Schedule a demo with Denim today and seize the opportunity for reliable funding to scale your brokerage.

In this uncertain economy it can be incredibly tempting for brokers to resort to non-recourse freight factoring to remove risk from their business. 

‍

While non-recourse factoring may sound like a great deal - putting your factoring company on the hook in the case of customer default, it also comes with a significant increase in expenses, fees, and restrictions on your business and clients.

‍

In this article, we’ll explore the best alternatives to non-recourse freight factoring that you can implement in your business for 2024, so you can improve your cash flow, de-risk your business, and accelerate your growth.

‍

Alternative 1: Recourse Factoring

‍

Recourse factoring is essentially the same process as non-recourse factoring, where a broker sells their open invoices to a factoring company at a discount, and gets paid a percentage of the invoice value up-front. The big difference is that with recourse factoring, the broker maintains responsibility for collecting unpaid invoices.

‍

When paired with other risk-mitigation strategies, recourse factoring is often less expensive and has fewer restrictions on your business than non-recourse factoring. 

‍

Most non-recourse factoring companies charge additional fees to compensate for the risks the factoring company is taking on. They also will run additional credit checks on your customers, and often only cover losses in the event of bankruptcy. These restrictions are reduced or removed entirely from recourse factoring agreements.

‍

Want to find out more? We compare recourse vs. non-recourse factoring in detail here.

‍

Alternative 2: Invoice or Receivables Financing

‍

Invoice financing is very similar to factoring, with one distinct difference: You continue to own and be responsible for any invoices. Instead of being sold at a discount to a factoring company, these invoices are used as collateral for a short-term loan. 

‍

Invoice financing has several pros and cons: First, you maintain full control over your invoices and collections process, and don’t involve your customers in your financing. This also means lenders are less likely to perform credit checks on your customers - but they may have additional criteria that your business must meet before providing the loan.

‍

Alternative 3: Line(s) of credit

‍

Lines of credit are another popular option for brokers to use instead of non-recourse factoring. The advantages of lines of credit are similar to those of invoice financing and bank loans - they keep your customers out of the lending process, and your business qualifies based strictly on its own merits.

‍

A line of credit can also be used for a variety of business needs beyond just paying carriers, such as financing expansion, hiring, and so on. The downside is that, in the current high-interest rate environment, lines of credit can get very expensive very fast.

‍

In addition to the various credit checks and financial statements a bank may require, a LOC adds debt to your balance sheet and requires consistent long-term payments that may restrict your cash flow. 

‍

They’re also often much more cumbersome than factoring agreements - where you can be waiting weeks or months to access funds vs. 24-48 hours with factoring.

‍

Here are some of the most important factors to consider when choosing between a line of credit and factoring:

‍

‍

Want to learn more? Download our Factoring vs. Line of Credit ebook here.

‍

Alternative 4: Self-Financing

‍

One alternative for well-funded brokers is self-financing. This method of financing requires brokers to have access to large cash reserves, but provides full control over your financing and avoids cumbersome loan repayments.

‍

While there are some upsides to self-financing, there are also a few downsides. The most obvious is the amount of cash required to finance your operations consistently. Your team will also lack support for payables, meaning you’re on your own for options carriers love like QuickPay. 

‍

Brokers who self-finance may also find themselves running into a cash crunch if shippers consistently pay late, or during economic booms where your reserves don’t scale with demand. During large spikes in volume, you may find it difficult to consistently pay carriers quickly enough to keep them happy.

‍

Alternative 5: Bank, Government, or Private loans

‍

Similar to a line of credit, a broker may approach a bank, the government, or a private lender for a short or long-term loan to improve their cash reserves.

‍

These loans often have more favorable terms than lines of credit, but often come with other restrictions and limitations. For example, SBA loans have specific size requirements, documentation requirements, restrictions on how funds can be used, and may not lend to you if you can get funding from other sources.

‍

These loans may also require collateral, but do allow you to remove customers from the lending process similar to lines of credit and invoice financing. 

‍

Alternative 6: Receivable insurance

‍

Receivables insurance is a method of risk management that brokers may want to use in addition to some of the financing options above. This involves a business insurance policy that covers losses on a broker's receivables, up to a certain amount. 

‍

This can provide peace of mind to brokers who have many loads on the road, and want to avoid a catastrophic event that might impact their cash flow.

‍

Unfortunately, there are also a few downsides. Receivables insurance isn’t cheap, and is an additional cost on top of any financing costs you may incur. These policies also often only cover catastrophic losses, and don’t provide any cash advances or support for your ongoing operations.

‍

Alternative 7: Risk mitigation and management

‍

Regardless of the financing options you choose, we always recommend brokers implement risk-management strategies to maintain a healthy operation.

‍

These strategies should be used in addition to financing options like factoring, and when properly implemented can be both more cost-effective and safer than non-recourse factoring.

‍

Here are some of our top risk mitigation strategies for brokers:

1. Diversify your client base with a wide variety of customers across industries, geographic locations, and cargo types.
2. Perform credit checks on customers, and implement your own client vetting criteria. 
3. Monitor customer payments and business health - and be aware of any risks posed by having too much of your business dependent on one or two customers.
4. Monitor the health and stability of the market as a whole, and create backup plans in the event of a downturn. 

‍

With the implementation of these risk mitigation measures, most brokers find that they’re comfortable using full recourse factoring to finance their business because they’re more confident in their client base and business health.

‍

Conclusion

‍

As a broker, it may be tempting to use non-recourse financing to mitigate the potential risks of customer bankruptcy. In reality, there are significantly less expensive and more effective ways of de-risking your business while improving the financial profile of your company.

‍

Alternatives such as recourse factoring, lines of credit or loans, self-funding, and more are all ways to improve your financial health with fewer fees, and can be less risky than non-recourse factoring when paired with risk mitigation strategies.

‍

Want to learn more about how to improve your cash flow, get best-in-class finance tools and dashboards, and streamline your back-office operations? Click here to learn about factoring with Denim get started today.

Growing a brokerage is hard, and most brokers know it’s important to maintain access to working capital through freight factoring to aid their growth. Yet one dreaded term will often cause brokers to stop in their tracks: the personal guarantee.

‍

Freight brokers often shy away from signing personal guarantees because they see them as too risky, controversial, or limiting. While this can sometimes be the case, freight brokers can use personal guarantees to their advantage.

‍

In this article we’ll review what personal guarantees are, the purpose they serve, why they matter, and how they can be a useful tool for many brokerages to get a leg up on the competition.

‍

What is a Personal Guarantee? 

‍

In the context of freight factoring, a personal guarantee is simply a promise made to the factoring company that they will be able to recover the advance provided to a brokerage. Factoring companies use personal guarantees as a way to ensure that funds that are lent out will be repaid. 

‍

‍

It’s essentially a backstop that a factor uses in the case of a broker’s customer refusing to pay an invoice or going bankrupt. Personal guarantees generally come in two forms, a limited guarantee and an unlimited guarantee.

‍

• Limited guarantees: A limited guarantee caps the amount that the guarantor (in this case, the broker who is borrowing funds) would be responsible for. These types of personal guarantees are generally set to a specific dollar amount or percentage of the debt, and are more common when there may be multiple entities that can pay some portion of the debt.
• Unlimited guarantees: Unlimited guarantees do not have a cap, and mean that the broker will be responsible for the entirety of the outstanding balance of the debt. 

‍

How Personal Guarantees Work for Freight Brokers

‍

Personal guarantees are terms that will be in the contract between a freight broker (borrower) and the factoring company (lender). These terms will be similar to other lending agreements between business borrowers and lenders, and are often used to secure credit when the borrower has a limited credit history. 

‍

Personal guarantees allow borrowers (in this case, the freight broker) to qualify for a line of credit that they otherwise normally would not qualify for or to secure a more favorable rate. 

‍

A guarantee in your contract may be under a variety of headings or clauses in your contract, such as:

• “Personal Guarantee”
• “Personal Guaranty” 
• “Guarantee Agreement”
• “Guarantee and Indemnity”
• “Grant of Security Interest”
• “Default”
• Etc.

‍

These sections vary based on the factoring company and terms of the agreement. Consult an attorney for more information.

‍

When a personal guarantee is made between a broker and a factoring company, the factoring company may run a credit check on the applicant (generally the business owner), in addition to checking the credit of the business itself. The lender may also ask the borrower to pledge personal assets such as checking or savings accounts, real estate, vehicles, etc. as collateral to secure the loan. 

‍

What Businesses Sign Personal Guarantees?

‍

‍

There are several reasons a business owner may need to sign a personal guarantee. Some of the most common scenarios are in new or small businesses that are still building up a solid credit history. 

‍

Many business owners also choose to sign an additional personal guarantee because it helps them secure more favorable rates or terms with the lender. These business owners are confident in the growth of their business and see personal guarantees as a low-risk way to improve their cash flow. 

‍

This tactic has even been used by some of the most famous business people in the world, such as former President Trump who personally guaranteed $421 million in debt. 

‍

According to a recent Small Business Credit Survey conducted by the Federal Reserve Banks, upwards of 59% of small businesses use a personal guarantee to secure funding. 

‍

Personal guarantees are incredibly common, and shouldn’t discourage brokers from engaging a factoring company.

‍

Why are Personal Guarantees Used in Factoring Agreements? 

‍

The primary goal of personal guarantees is to protect the lender (factoring company) from bad actors. It’s incredibly easy these days to register an LLC, accumulate a significant amount of unsecured debt, and then declare bankruptcy leaving the lenders without any recourse. 

‍

Providing credit to new and small businesses carries significant risk for the lender, and personal guarantees are a common way to mitigate that risk, and in turn offer lower rates to clients.

‍

Without personal guarantees, lending rates would skyrocket and eat into the broker's cash flow, creating a lose-lose situation for everyone involved. When freight factoring companies like Denim can limit this risk through a personal guarantee or collateral, brokers can secure significantly better rates, improve their cash flow, and maintain healthy lending relationships.

‍

The vast majority of brokers should not be concerned about providing a personal guarantee to freight factoring companies.

‍

If you’re doing your best to run a healthy business and believe in your company and your clients, then you have little to worry about. Personal guarantees are rarely called upon, and usually only as a last resort due to extreme cases like fraud, gross mismanagement, or a broker’s entire client base going out of business.

‍

The best way to ensure your business isn’t one of these rare edge cases is to continuously diversify your portfolio of clients. The freight brokers at the highest risk are those who depend on one or two large customers for the majority of their business. 

‍

Diversifying your client base will eliminate the vast majority of scenarios where personal guarantees would be called upon. 

‍

Personal Guarantee Alternatives 

‍

There are a few alternatives to personal guarantees that are less common but still provide some protection for the lender and borrower. These can include validity agreements, credit insurance, or other types of collateral to secure the loan. 

‍

These alternatives have varying levels of protection, requirements, and pros and cons. For example, credit insurance would protect a brokerage’s assets in the event of a default, but comes with additional costs, fees, and credit checks. 

‍

Personal guarantees are often the least expensive way for both parties to secure a loan, meaning lower rates, fewer fees, and a smoother borrowing experience. 

‍

Does Denim’s Contract Include Personal Guarantees?

‍

At Denim we specialize in freight factoring for freight brokers and fleets, and we do require personal guarantees in our contracts. Personal guarantees are a standard practice in the industry, and are required by most freight factoring companies.

‍

Using personal guarantees to secure loans allows us to offer some of the lowest rates in the industry, even to brokers with little to no credit history. 

‍

These guarantees may seem daunting, but they’re a fundamental part of lending and borrowing in the freight industry where cash flow is king. 

‍

For freight brokers, embracing personal guarantees can open the doors to better rates, stronger relationships with your factoring company, and a clear path for growth. 

‍

If you’re ready to get started on improving your cash flow, building your business, and streamlining your financial operations, click here to speak with our team and start factoring today.

‍

Las Vegas recently hosted the Manifest: Future of Supply Chain 2024, a spectacle of innovation that transformed the desert landscape into a melting pot of supply chain evolution. 

‍

With over 4,500 attendees, including 1,500 shippers, the event was not just a gathering but a bold statement on the future of logistics and supply chain management. 

‍

We attended for our second year and had the opportunity to meet with many freight brokers and carriers, attend sessions, and network with partners. 

‍

From our conversations, we took away three trends:

‍

1. High Customer Expectations Across the Supply Chain

‍

Consumer expectations are being felt from top to bottom of the supply chain. And Amazon is setting a high benchmark to follow. 

‍

Amazon set a new standard by delivering a package in 15 minutes via drone in College Station from click to door. "Amazon has set the bar for customers, and we have to figure out how to meet it," said Itmar Zur, CEO & Co-Founder of Veho. 

‍

The ripple effect? Speed is now a basic expectation, reshaping the entire supply chain.

‍

Farrukh Mahboob, CEO & Founder of PackageX, provided a solution: shippers must diversify their carrier mix. This approach aims to meet evolving customer demands. 

‍

Brokers and fleets use this as a selling point. Showcase your diverse carrier network and educate shippers on why they need various options at their fingertips. Speaking to shipper's customer needs is a sure way to make a lasting impression and provide more value to their business. 

‍

2. The High Cost of Bad Data

‍

The industry is bleeding money due to insufficient data. The loss? A staggering $1.3 trillion, according to Sarah Barnes Humphrey, founder & host of Let’s Talk Supply Chain. 

‍

Getting data is only half of the problem, but molding it into actionable insights is where the real problem lies. Coby Nilsson, CEO & Co-Founder of Enveyo, said this was top of mind for his brokerage, "Getting data aggregated and digestible is something we are still working on." 

‍

When developing a successful data strategy for your organization, you must step back and reflect on potential blind spots hindering your progress. One helpful piece of advice from Cody, who is currently addressing this issue within his own company, is to begin. By taking that first step, you can better identify areas for improvement and start making positive changes towards a more effective data strategy.

‍

Peter Coratola Jr., CEO and president of EASE Logistics, added the importance of technology and internal processes. "The problem is workplace adoption inside our walls. The key is to keep it simple and not let it get in the way of customer experience."

‍

An easy way to encourage adoption and ensure data is moving smoothly across your technology stack is to only work with providers with an open API or integrate with your customer technology stack. Solutions that mesh seamlessly are not just nice to have; they're essential for survival.

‍

3. Overcoming Cash Flow Challenges

‍

In 2024, many brokerages and fleets are looking to grow their businesses. However, they face a significant challenge due to cash flow issues. The problem arises when they must pay carriers while waiting for payments from shippers. Factoring emerges as a viable solution to overcome this challenge. It helps support growth and ensures that carriers are paid on time. 

‍

According to Lexi Farris, Senior Sales Manager at Denim, business owners' perception of factoring has changed recently. In the past, factoring was considered a "dirty word," but now, several brokerages and fleets explicitly ask for factoring. Business owners have realized the benefits of factoring in this market. Farris believes that a healthy cash flow is essential for growing and sustaining momentum in business. 

‍

The logistics industry embraces factoring as an emerging trend, and more businesses recognize its value. Leveraging factoring has proven to boost a company's ability to take on new projects by ensuring steady cash flow.

‍

2024 Will Be a Big Year for Supply Chain

‍

According to Itmar, "2024 will be the biggest year of the supply chain. The last two years have been all about cost reduction. Those that will win are marrying cost with customer experience. Winners will start to emerge as the economy starts to shift." 

‍

We're really excited about what this means for all of us. Providing the best customer experience is a cost worth investing in. Businesses that get this balance right are the ones we'll be talking about next year.

‍

We believe this is the perfect time to think about how your business can jump on this opportunity. That's where factoring comes in. It's like a superpower for your cash flow, giving you the flexibility to invest in what really matters – your customers and your growth.

‍

Curious about how this works? Let's chat! Request a quote today, and let's explore how we can help supercharge your business growth.

‍

So, here's to 2024 – a year full of potential. We can't wait to see where it takes us all. Let's make it a great one, together!

It’s no secret that the economy is uncertain at best, and many brokers are feeling the pain. With stories of shipping companies laying off large portions of their workforce or closing entirely, non-recourse factoring starts to sound like a pretty good deal.

‍

Non-recourse factoring is a type of freight factoring where the factor takes on the responsibility of collecting debt in the event of default. 

‍

This sounds great for the broker, right? You get paid upfront for your invoices, and have no risk if the customer goes bankrupt. 

‍

However many brokers don’t realize that non-recourse debt factoring can add fees, limitations, and restraints to your growth.

‍

In this article, we’ll review the pros and cons of non-recourse factoring, including some of the not-so-obvious downsides that most brokers miss.

‍

What is Non-Recourse Factoring? The Myths and Misconceptions:

‍

On the surface level, non-recourse factoring sounds like a great deal for the broker: Brokers get paid upfront by the factoring company for their invoices, and the factoring company assumes all the risk if the customer doesn’t pay. 

The truth is, the risk transfer isn’t total, even if you’re working with the best non-recourse factoring companies. 

Many non-recourse factoring companies only cover a broker’s losses in the case of business closure or bankruptcy, and don’t cover the many other reasons a customer might not pay their invoices. 

‍

Some of the cases in which brokers are not protected by non-recourse factoring include:

• Disputed invoices.
• Invoices where the customer breaks their contract.
• Non-payment caused by invoices with errors or omissions.
• Customer insolvency from external factors outside their control, such as natural disasters.
• Cases of fraud or illegal activity.
• Insolvency of the factoring company.
• … and more.

‍

On top of the many cases in which an invoice wouldn’t be covered by non-recourse factoring, these agreements also come with higher fees and costs for the broker. While factoring without recourse can reduce your risk, the increased costs may outweigh the benefits.

‍

When comparing full recourse factoring and non-recourse factoring fees, non-recourse factoring often has rates that are 0.5%-1% higher than recourse factoring, which can have a noticeable impact on your cash flow. On top of that, non-recourse factoring often has additional fees such as:

• Additional admin fees.
• New credit check fees.
• ACH and wire transfer fees.
• Monthly minimums that must be met to avoid another fee.
• Termination fees.
• And additional charges for higher-risk clients.

‍

With all of these extra costs, it’s no wonder that most brokers choose to use recourse factoring instead.

‍

Non-recourse factoring companies are selective

‍

We’ve covered the fees, but there are some other not-so-obvious downsides to non-recourse factoring. Since the factor is taking on all of the risks of non-payment, they can dictate which clients they want to work with.

‍

This means that brokers and carriers are often forced to work exclusively with highly reliable clients who have strong credit scores. Brokers may have to turn down clients who don’t meet the factor’s criteria, limiting their customer base.

‍

Conservative credit limits

‍

On top of being unable to take every customer, non-recourse freight factoring also imposes restrictive credit limits which further restrict your business. These limits reduce the factoring company’s risk, but often mean a broker can only factor invoices from certain key accounts. 

‍

These restrictions limit a broker’s access to working capital and can increase your overall business risk. During uncertain economic times, improving your volume is one of the best ways to de-risk your business, and non-recourse factoring can prevent that.

‍

A more intrusive relationship for your customers

‍

Brokers often have long-standing and unique relationships with many of their clients, and take these relationships into account when choosing to do business with a particular customer. When a non-recourse factoring company becomes involved in the agreement, these relationships can be thrown out the window.

‍

Most factoring companies will require additional documentation from your customers before taking on their invoices. These requirements can include additional credit checks, financial statements, and more. This can cause brokers to lose long-term clients they trust.

‍

Higher monthly minimum fees

‍

Factoring companies sometimes require minimum monthly volume commitments to avoid paying an additional fee. With full recourse factoring these volumes are usually small, and in some cases there are no monthly minimums at all. There might be certain revenue thresholds to qualify for factoring solutions. Search for a factoring company that offers selective factoring (like flexible factoring with Denim), so you can have control over which jobs you factor.

‍

With non recourse freight factoring these minimums are higher, and so are the fees for not reaching them! This can put brokers in a tricky position: they feel forced to take on more clients or shipments to meet the minimums, but simultaneously have restrictions on their client base imposed by their factoring company.

‍

What’s right for your brokerage?

‍

Before committing to a factoring company, it’s important to understand all of the implications and fine print that can go into a non-recourse factoring agreement. These agreements can provide a safety net if a customer goes bankrupt, but come with burdensome restrictions and fees in exchange.

‍

Most brokers understand that being in this business comes with some element of risk, and the risk of customer default is one of them. Brokers can mitigate these risks by performing credit checks on their customers, diversifying their customer base, and implementing a collections strategy. Using these tactics alongside recourse factoring can be just as effective as non-recourse factoring.

‍

If you’re trying to grow your brokerage, it’s incredibly important to work with a financial partner whose goals are aligned with your own. Fees and limitations on your customer base are the last thing a growing brokerage needs.

‍

At Denim we pride ourselves on providing financial solutions that enable your business to grow. Instead of the restrictions, fees, and limitations imposed by non-recourse factoring, we help brokers win more loads, save time and money, and streamline their operation.

‍

Click here to learn more about how factoring with Denim can help your brokerage reduce costs, improve access to working capital, and grow your business.

‍

Managing a fleet means grappling with significant fuel costs. For truckers, fuel is the second highest expense following salaries. Fuel expenses can range between $50,000 to $70,000 per truck annually. 

‍

But there's a savvy way to handle these expenses: enter the world of fuel cards.

‍

What is a Fuel Card? 

‍

Fuel cards, or fleet cards, are specialized payment cards truckers use to buy diesel, DEF, and other fuels. Additionally, they offer fleet owners tools to manage and track fleet-related expenses efficiently. Beyond fuel, they often extend to vehicle maintenance and related costs.

‍

These cards streamline payments while offering real-time insights into spending. They're essential for setting spending limits and simplifying International Fuel Tax Association (IFTA) reporting. Plus, they open the door to network-specific fuel discounts, saving significant money in the long run.

‍

How Does a Trucking Fuel Card Work? 

‍

Fuel cards work similarly to business credit cards. You distribute them to your team, linking all their transactions to one company account. This setup puts you in charge of periodic payments like a regular credit card. However, most fuel cards tend to be charge cards rather than credit cards, which means the balance has to be paid in full on the due date.

‍

The real game-changer is how these cards simplify expense management. They save you from the tedious task of tracking each employee's fuel and maintenance purchases. With features like expense tracking and reporting, these cards give you a comprehensive view of all on-road spending. They also come with added perks like fraud alerts and fuel discounts.

‍

The Benefits of Fuel Cards

‍

A fuel card can benefit your business in a variety of ways. 

‍

Depending on what you sign up for, you can take advantage of multiple perks, including:

• Rewards and Discounts: These cards often offer rewards or points for using certain truckstops  or meeting usage thresholds.
• Controlled Spending: You decide what types of purchases are allowed, for fuel and maintenance or snacks and drinks from convenience stores.
• Monthly Expense Tracking: Keep a close tab on transportation expenses, avoiding the headache of manual tracking.
• Employee Monitoring: Assign cards for detailed purchase tracking to specific employees or vehicles.
• Alerts for Unusual Spending: Stay informed about any abnormal fueling activities among your team.
• Long-Term Reporting: These cards provide valuable long-term data that's handy for business decisions and tax purposes.

‍

Comparing Fuel Cards and Credit Cards

‍

Fuel cards and credit cards may seem similar when it comes to payment options, but they are different, particularly in terms of fleet management. Fuel cards are specifically associated with individual vehicles or drivers, providing fleet managers detailed information about each vehicle's fuel usage. You cannot obtain this level of detail with standard credit cards, which offer more general and less specific tracking of expenses.

‍

Fuel cards provide better precision when it comes to spending controls. Managers can set specific spending limits and authorize purchases for particular types of products, such as fuel and maintenance. This differs from credit cards, which offer broader spending capabilities that can lead to less control over fleet expenses.

‍

The fee structures of fuel cards are also more straightforward, usually involving fewer hidden costs and no interest charges. This simplicity is beneficial for fleet managers who need precise and predictable budgeting. Credit cards often come with various fees and interest charges, complicating financial management.

‍

Additionally, fuel cards provide specific discounts based on purchase volume and loyalty to certain fuel networks, offering tangible cost savings for fleets. Credit cards typically do not provide this level of customization and savings.

‍

Lastly, fuel cards have features specifically designed for fleet management, such as automated accounting and tools for simplifying IFTA record-keeping. These features make fuel cards a strategic asset for efficiently managing fleet expenses, offering advantages beyond regular credit cards' capabilities.

‍

Choosing the Best Fuel Card for Your Fleet

‍

Selecting the right fuel card for your fleet involves considering factors like fleet size, usual routes, and vehicle types. Larger fleets may benefit from cards offering extensive network coverage and volume discounts, while smaller fleets prefer cards with lower fees and local network availability. Consider the geographical coverage that matches your fleet's routes and the specific benefits for the types of vehicles in your fleet.

‍

When comparing fuel cards, look beyond the network and discounts. Assess fees, credit terms, and additional services like maintenance discounts or roadside assistance. The ideal fuel card aligns with your fleet's operational needs and financial objectives.

‍

Integrating Fuel Cards with Fleet Management Systems

‍

Integrating fuel cards with fleet management systems streamlines operations by automatically recording fuel transactions. This integration provides real-time insights into fuel usage, simplifies expense tracking, and reduces administrative tasks. It eliminates manual data entry and minimizes errors, allowing fleet managers to identify fuel usage patterns and potential issues quickly.

‍

This integration also eases reporting and compliance, particularly for IFTA reporting, by offering accurate and accessible data. It can help identify areas for improvement, like route optimization or driver training for better fuel efficiency. In today's digital landscape, integrating fuel cards with management systems enhances fleet management efficiency, offering cost savings and improved fleet performance.

‍

Denim Fuel Card Program 

‍

Streamline your fleet management with the Denim Fuel Card. Say goodbye to fuel fraud and lack of control, and say hello to fuel discounts up to $2/gal. Denim combines tech-forward factoring with fuel optimization solutions going far beyond traditional rebates.

‍

Manage payments, fueling expenses, and accounting all within the Denim platform. With the seamless workflow between Denim and your fuel card, fleets can leverage their Denim funds to send real-time payments to manage expenses. From there, fleets can access a self-serve portal to keep fleet finances at their fingertips - track spending, set card limits and controls, block fraudulent transactions, save on fuel and non-fuel expenses, and more. 

‍

The Denim Fuel Card isn't just another card; it's fuel for financial flexibility, business credit growth, and an improved bottom line. Welcome to a future where your fleet operates at its peak potential.

‍

Apply for the Denim Fuel Card and start saving today!

‍

Moving a load is never a straight line. 

‍

Oftentimes, a load encounters roadblocks, delays and changes that can impact the overall cost. Understanding these complexities is crucial for anyone involved in shipping, whether you're a business owner, logistics manager, or even a truck driver. 

‍

This article dives into one of the key components that often come as a surprise to many: accessorial charges.

Taxes can be confusing, especially for freight brokers who don’t have large accounting teams. Adding to the confusion, most brokers use some kind of freight factoring service, which can make tax season even more complex by changing how payments are sent, adding fees, 1099s to carriers, and more. 

‍

In this article you’ll learn some of the impacts factoring can have on your taxes, and what your brokerage needs to know for the 2024-2025 tax year and beyond.

Georgia is renowned as the logistics and transportation hub of the Southeast. Home to 85% of the world's top third-party logistics companies (3PLs), Georgia's freight network extends its reach far and wide. An impressive 80% of the U.S. market is accessible within a 2-hour flight or a 2-day truck drive from the state, highlighting its pivotal role in the distribution chain.

‍

The heart of Georgia's logistics prowess lies in its world-class facilities. Hartsfield-Jackson Atlanta International Airport is the world's busiest and most efficient airport and features extensive cargo capabilities. With over 2 million square feet of warehousing space and a unique USDA-approved On-terminal Perishables Complex, it handles an astonishing 650,000 metric tons of cargo annually.

‍

Complementing the airport's capacity is the Port of Savannah. Georgia's port is a leader in American-made exports and boasts 67 cold chain facilities encompassing 189 million cubic feet of space. 

‍

This article breaks down the facets of Georgia's freight market that make it a hotspot for 3PLs and freight brokers. From industry-driving sectors to emerging trends and strategic insights, we explore what makes Georgia an ideal landscape for logistics success.

‍

Georgia's Economy and Industries

‍

Georgia's economy is characterized by growth and diversification, making it one of the leading economic centers in the Southeast. In recent years, the state has experienced significant economic development, marked by increased investment, job creation, and technological innovation.

‍

Georgia is known for its business-friendly climate, which includes competitive tax incentives, a skilled workforce, and a strategic location that provides easy access to domestic and international markets. This environment has attracted many businesses, from manufacturers to multinational corporations.

‍

Top Industries

‍

Understanding Georgia's industrial landscape is crucial as you look to expand your business and diversify your client base. Keeping an eye on growing industries can provide new opportunities and help in strategic planning for business expansion.

‍

Top 5 Industries By Number of Companies According to NAICS: 

• Retail Trade: A primary industry in Georgia, comprising everything from large retail chains to independent stores, significantly influencing the movement of consumer goods.
• Construction: The construction industry drives substantial freight movement from building materials to equipment. Although there was a 4.1% decrease in revenue last year, it remains a vital part of the state's economy.
• Wholesale Trade: This sector, contributing $43 Billion to Georgia's GDP, acts as a critical link in the distribution of products throughout the state and beyond.
• Manufacturing: Manufacturing is central to Georgia's economy, growing 4.3% and accumulating $59 Billion in GDP last year. 
• Transportation and Warehousing: This sector is crucial to Georgia's supply chain and boasts a 3.5% annual growth rate.

‍

Top Manufacturing Goods

‍

Georgia boasts a substantial manufacturing sector with 8,100 companies employing 476,170 workers. A significant portion of these companies, 12%, are publicly owned, and the same percentage imports raw materials. Notably, 25% of these manufacturers distribute their products internationally.

‍

Atlanta, Georgia's largest industrial city, houses 679 manufacturers with 49,090 workers. Other key industrial cities include Dalton, Savannah, Gainesville, Marietta, Alpharetta, and Columbus.

‍

Georgia's manufacturing landscape is diverse, featuring significant aeronautics, automobile manufacturing, and food processing players. These industries and cities are crucial to the state's robust industrial sector.

‍

Below are the top industries by GDP according to Georgia Tech’s Manufacturing Extension Partnership: 

• Food and Tobacco Manufacturing ($11,650 million in GDP)
• Chemical Manufacturing ($6,350 million in GDP)
• Aerospace and Transportation Manufacturing ($5,975 million in GDP)
• Textile and Textile Product Mills ($4,454 million in GDP)
• Paper Manufacturing ($4,381 million in GDP).

‍

‍

New and Rising Manufacturers in Georgia

‍

Georgia's business-friendly environment attracts many companies to metro Atlanta and other parts of the state. Various businesses are opening headquarters, distribution centers, and customer service offices. 

‍

Here are some of the significant business moves happening in the area.

‍

Opportunities for Freight Brokers and 3PLs in Atlanta

‍

Atlanta's economy and freight market offers many opportunities for freight brokers and 3PLs looking to expand or diversify their business. Georgia's strategic position as the logistics and transportation hub of the Southeast, combined with its access to 80% of the U.S. market, provides an unparalleled platform for growth.

‍

The state's robust manufacturing sector, including solid industries like food processing, transportation equipment, and chemicals, continues to drive demand for freight and logistics services. 

‍

With Georgia's economy experiencing substantial growth and the freight and logistics industry contributing significantly to the state's GDP, there is an apparent demand for efficient, innovative logistics solutions. The influx of new businesses and business expansions in the state further underscores the need for capable freight brokers and 3PLs to facilitate these operations.

‍

Are you growing your Atlanta freight brokerage or trucking company? Need an Atlanta factoring company? Denim has your cash flow needs covered. With flexible factoring solutions, Denim can set you up for success in Georgia's growing market. Tap into the potential of this thriving economy and let Denim help you navigate the financial aspects easily. Learn how Atlanta-based Scale Logistics grew with Denim.