There are a variety of organizations that provide credit history and ratings for all types of companies. This information should give you insight into the company’s ability to pay its bills and pay on time. Here are a few key ratings that you should pay attention to when dealing with freight brokers:
Dun & Bradstreet: 4A1 (DUNS# 79-145-9410)
4A: The first category reflects the company’s size as based on its total net worth.
1: The second category measures a company’s overall creditworthiness.
Blue Book: 5000M XXXX AB Elite Transportation Member
5000M: This figure reflects a company’s overall financial strength and is based on its equity and working capital.
XXXX: The second category is a basis of the company’s moral responsibility and integrity. The category goes from X (poor) to XXXX (Excellent).
AB: This category describes the company’s pay practices and ranges from more than 60 days to within 10 days.
Elite Transportation status: This is a designation given to companies who have been listed with Blue book for over 5 years.
Red Book: Business Character Award A **** I
Business Character Award: This designation is reviewed annually and looks at a company’s overall reputation of ethical trading practices, business competence and financial stability.
A: The first category reflects a company’s net worth.
****: The stars signal the company’s trading practices. One star * = poor, whereas four stars **** = Excellent.
I: The last category tells whether a company’s paying practices are prompt or not.
Transportation Intermediaries Association
Other industry organizations such as the TIA have special designations for companies that reach a high industry standard.
