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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.

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

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

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

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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.

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

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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. 

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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.

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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.

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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.

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

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Non-recourse factoring companies are selective

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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.

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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.

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Conservative credit limits

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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. 

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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.

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A more intrusive relationship for your customers

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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.

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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.

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Higher monthly minimum fees

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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.

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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.

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What’s right for your brokerage?

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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.

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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.

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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.

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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.

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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.

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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. 

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

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What is a Fuel Card? 

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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.

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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.

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How Does a Trucking Fuel Card Work? 

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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.

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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.

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The Benefits of Fuel Cards

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

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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.

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Comparing Fuel Cards and Credit Cards

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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.

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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.

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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.

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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.

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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.

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Choosing the Best Fuel Card for Your Fleet

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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.

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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.

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Integrating Fuel Cards with Fleet Management Systems

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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.

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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.

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Denim Fuel Card Program 

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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.

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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. 

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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.

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Apply for the Denim Fuel Card and start saving today!

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Moving a load is never a straight line. 

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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. 

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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. 

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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.

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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.

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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. 

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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.

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Georgia's Economy and Industries

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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.

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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.

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Top Industries

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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.

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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.

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Top Manufacturing Goods

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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.

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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.

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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.

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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).

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New and Rising Manufacturers in Georgia

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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. 

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

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Opportunities for Freight Brokers and 3PLs in Atlanta

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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.

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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. 

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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.

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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.

As another year comes to a close, it’s time for freight brokers to take a look in the rearview mirror and analyze their financial situation. The freight markets of 2023 have been unforgiving, with spot load rates and volumes plummeting by nearly 50% compared to 2022. This ongoing drastic downturn has had a significant impact on many brokerage’s finances and cash flow.

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With predictions for 2024 ranging from a miraculous rebound in Q2 to a long-term freight recession that could linger through 2025, it’s more important than ever for brokerages like yours to build a robust and resilient financial plan. 

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Without a solid plan, brokerages risk falling into common finance traps such as relying on receivables to sustain their operations, potentially jeopardizing relationships with carriers.

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This guide will serve as a quick start to help your brokerage create sound financial structure and guardrails in your business, so you can endure next year’s volatility and come out on the other end more prepared than ever. Let’s dive in.

Last year, we compiled end-of-year freight and logistics industry predictions. Our expert contributors offered insights that proved to be quite accurate.

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In 2023, the freight market faced its share of challenges. We observed a sluggish market, an uptick in acquisitions and bankruptcies, and a strong push toward more efficient operations.

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Now, what's in store for 2024? The experts are ready to share their forecasts, and if history is any guide, you’ll want to pay attention.

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Back with a fresh set of predictions, our panel of industry veterans is armed with years of experience and an understanding of the nuances of the supply chain.

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These professionals shed light on potential technological impacts, market shifts, and emerging trends. Read on to discover the key predictions for 2024 and how they might shape the landscape of freight and logistics.

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1. The next freight cycle will start with another external shock from the broader economy in late 2024 or early 2025

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“The freight markets are now 22 months into the freight recession. While truck capacity is returning to balance with more normal load volumes, a truly balanced and healthy market doesn't seem to be around the corner. I don't see many green shoots in the broader economy. 

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Freight cycles are hard to predict, and many start with a sudden shock to networks from the broader economy. We'll likely see another shock to the system (hopefully not as severe as a pandemic) that will kick off the next bull market. Hopefully this will happen in the back half of 2024. Fingers crossed.”

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Kevin Hill

Owner of Brush Pass Research 

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2. Shippers will go back to the basics.

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“In my business, I have never been asked what my tech stack looks like by any of my shipper customers. I truly feel that automation is a great tool to utilize as long as there is core fundamental training behind the broker using the software. You cannot automate bad training, and I truly feel that shippers are returning to the basics of service & execution.”

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Chris Jolly

Founder of Freight Coach 

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3. There will be a shift in how visibility and connection are thought of. 

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“In recent years, visibility has meant tracking. Connection has been transactional. Whether the connection is powering payment, tracking, or load tender and acceptance, it has been a bottoms-up transaction driven mostly by technology companies promulgating their specific solution. 

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2024 will see growing demand from shippers, brokers, and carriers for true trusted connections starting at the top of the value chain that brings together multiple parties operating in historically disparate digital environments. When we think about verified identity, rates, location + movement, risk management instruments, and settlements, those will still exist with separate vendors but streamlined in a connected ecosystem. This ecosystem we are building simultaneously pulls risk from any company's balance sheet and increases the speed of trade across many players dealing in the truckload sector.”

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Michael Caney

Chief Commercial Officer at Highway

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4. Shippers will award lanes to brokerages offering customized solutions with value-adds.

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“In 2024, shippers are expected to increasingly award lanes to freight brokerages that provide customized logistics solutions and significant value-added services. This shift is driven by the need for more adaptive and strategic supply chain management. Brokerages that excel in offering tailored services, such as advanced route analytics, real-time tracking, and sustainability initiatives, will stand out. This trend highlights a transition from transactional relationships to collaborative partnerships, where the ability to offer personalized, data-driven solutions is key to securing and maintaining business relationships with shippers.”

Lexi Farris 

Sr. Sales Manager at Denim 

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5. The truckload market will likely stay stressed until Q3 2024, but there could be a boost in Q2 due to increased demand during produce season.

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“In 2023, approximately 88,000 carriers ceased operations, along with the closure of around 8,000 brokerages. Even as volumes tend to be higher than pre-pandemic levels, they cannot sustain the continued glute of capacity. The challenges posed by double brokering and freight fraud have undoubtedly contributed to the prevailing market conditions. As more carriers and brokers either shut down or have their authority revoked, a gradual reduction in overcapacity within the market is anticipated.

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While it's unlikely that we'll experience a significant increase in Q1, given that it is traditionally a slower period after the holiday rush, I anticipate encountering some resistance, with tender rejections possibly rising at a higher percentage as we enter the Q2 produce season. The challenges in the industry are expected to persist into 2024, making it a demanding year.”

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Thomas Werdine

Founder at ThinkFreight

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6. The Fed will lower rates, leading to an increase in freight volumes.

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“Many analysts predict the Fed will lower interest rates around May 2024. 

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My guess is this provides a short-term boost to the housing market because many of the potential buyers sitting on the sidelines will try to buy at once. Thus, more freight will be moved for things like renovations & new construction. The darker side is that the prices of single-family homes will shoot up.” 

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Travis Vaught

Demand Generation Manager at Denim

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7. Challenging freight market conditions will continue for most of 2024, increasing business risk for both Fleet and Broker businesses. However, many growth opportunities will still exist for a Smart Fleet or Broker business.

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“As the freight market comes out of the doldrums, shippers may pay higher prices to ship their Freight later in 2024. Expect the next stage of the freight cycle to be harder on freight brokerages than shippers. Many shippers have started to prefer asset-based carriers in their routing guides, which has meant lost volume for brokers. Lower volumes mean lower margins for brokers. Consequently, many brokers with freight committed to contract rates will see their margins squeezed.”

JJ Singh

CEO of EKA Solutions, Inc. 

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8. In the next five years, innovation will be led by SmartBrokers, combining deep industry relationships with cutting-edge third-party technology.

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“Over the past five years, venture-backed digital brokerages like Convoy and Uber have set the pace for innovation in our industry. They’ve shown how technology can transform freight brokering, making it more efficient and transparent. However, the next phase of innovation will be dominated by SmartBrokers. These traditional brokers have deep-rooted industry connections and are now integrating advanced third-party technologies into their operations. This blend of relationship-driven business and tech-savviness will define the future of freight, offering a more holistic, efficient, and customer-centric approach.”

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Bharath Krishnamoorthy

CEO and Co-Founder at Denim 

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9. The surviving carriers are going to largely “chase the money” around the country to survive as shippers continue to take advantage of lower-than-normal rates.

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"In light of the recent Panama Canal challenges, a stark contrast is evident: the LB/LA ports on the West Coast are witnessing historically high volumes while Houston and Atlanta experience lower volumes. This scenario fosters accelerated recessionary patterns in Houston and Atlanta, juxtaposed with stabilization or growth in the Southern California market. In response, surviving carriers will likely 'chase the money' across the country, adapting to these regional imbalances. Expect unusually rapid, region-specific shifts – both inflationary and deflationary – throughout the year, eventually leading to a general trend of nationwide inflation once the market corrects the current oversupply."

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Alex Schick

Co-Founder and COO at Alliance Logistix 

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10. Credit Crunch will continue for asset-lite businesses.  

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“We’ve seen several brokerages this past year get into trouble with Asset Based Lines of credit, and as brokerages continue to experience drops in volumes and in rates the temptation to use that capital to fund operations will continue to grow.  As interest rates remain at this high level, we will see brokerages turn to factoring as an added source of control and working capital.”

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Sean Smith 

VP of Product at Denim 

Facing 2024's Freight Challenges: Enhance Your Cash Flow with Flexible Factoring

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Navigating 2024’s market swings will require not just foresight but also flexibility. The insights from our experts paint a picture of a sector that's continually adapting to new challenges and opportunities. From technological advancements to economic shifts, staying ahead in the freight industry means being ready for anything.

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One key aspect of this readiness is financial stability, and that's where factoring comes into play. In a landscape where cash flow is king, factoring can be a game-changer for freight businesses, especially those looking to adapt to the dynamic market conditions we've discussed. Whether you're dealing with slow-paying clients or looking to expand your operations, factoring offers a reliable way to keep your finances in check.

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Are you curious about how factoring can benefit your business in 2024? Learn more about our flexible factoring solutions. Discover how you can transform your financial strategy to meet the challenges of 2024 and beyond.

At F3, if 'oversupply' were a bet, you'd leave with pockets as full as a loaded freight container. 

This November, the Chattanooga Convention Center didn't just buzz; it roared with discussions of market dynamics that had everyone from seasoned pros to newcomers perking up their ears. The Future of Freight Festival, set in the heart of Freight Alley, became a junction for the global freight community to dissect and debate the industry's hottest topics.

It wasn't the "Please Advise" hats or the splash of Hawaiian shirts that caught the eye—it was the enthusiasm for what's on the horizon for supply chains, the strategies for navigating unpredictable markets, and the emerging technologies set to redefine how we think about logistics.

Shippers' Perspective on Efficiency

In a conference rich with insights from brokers, carriers, and tech innovators, Sabrina Carr, the Director of Global Transportation at the Clorox Company, stood out by bringing the vital shipper's perspective into focus.

She zeroed in on three key metrics that she believes are crucial for supply chain efficiency: on-time pick-up, cost, and truckload utilization.

Sabrina highlighted the importance of on-time pick-up, explaining that being late can mess up a shipper’s operation. It’s a common problem that often leads to a blame game between shippers and carriers. Sabrina’s message was clear: better data helps us understand and solve these issues.

Regarding cost, the goal is straightforward – move goods as cheaply as possible without sacrificing quality or reliability.

Sabrina then delved into the critical measure of truckload utilization, underscoring the industry's drive towards maximal space efficiency with a simple yet potent phrase: "No one wants to pay for shipping air." This sentiment encapsulates a broader industry challenge as firms strive to optimize every aspect of transportation to combat rising costs.

Sabrina concluded with straightforward advice for those doing business with companies like hers: "Keep looking ahead. Be ready with solutions before problems arise. Those who help us think differently about our supply chain are the ones who add the most value. We're all about keeping things moving smoothly and costs in check."

Navigating Freight Markets and Bid Cycles

Josh Phelan, SVP of finance and pricing at J.B. Hunt, and Craig Fuller, CEO of FreightWaves, didn't mince words in their discussion about the current state of freight markets and bidding strategies.

Their assessment was honest – the market isn't looking great. Josh drilled into critical metrics like rejection rates and the supply/demand ratio. He pointed out that we're not seeing the carrier drop-off needed to balance out the rates. Carriers are sticking around, even with spot rates as low as $2.21 per mile, which is longer than expected.

Craig drew parallels to the 2015 recession but with a critical difference: "The rates now swing much wider. We're seeing fluctuations roughly three times what we saw back then, making today's market especially tough to navigate."

But it wasn't all doom and gloom. Josh had practical advice for navigating these choppy waters during the bid season. His strategy? Begin with a clear customer-focused approach, setting out expectations from the get-go. Then, pivot to asking the customer what they need most. This approach helps create a customized pitch that can hit the mark.

Entrepreneurial Insights for Growth

A highlight at this year's F3 was the town hall with Brad Jacobs, executive chairman for XPO, Inc. Forgoing the usual script, he opened the floor to questions, addressing everything from business scaling to personal queries about making it with a modest start.

Here are key insights from the session:

Facing Problems Head-on:

He emphasized mental resilience in entrepreneurship: "When you're building a business, facing problems is inevitable. The key is to tackle them head-on and not let them take over. It's about mindset and staying level-headed through the challenges."

The Foundation of Scaling—People:

He shared that the secret to successful scaling lies in the team: "A company grows with its people. Look for individuals who are diligent, driven, collaborative, and honest. When you trust your team, and they trust each other, you can achieve remarkable things. It’s all about nurturing the right culture."

Understanding the Nature of Freight Brokerage:

He provided an insider's perspective on the industry: "Many assume that good times will last forever, but freight is inherently unpredictable. That's exactly why freight brokerage is essential—it thrives on market volatility, and that’s where it adds value."

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Addressing Fraud in the Freight Industry

Kendra Tucker, CEO of Truckstop, delivered a session rich in analysis, tackling the pressing issue of market oversupply. She underscored a significant challenge within the freight industry: the influx of new carriers, with an unprecedented 81,000 entering the market in 2021, signaling a need for market correction.

Kendra pointed to the financial success during the early stages of the pandemic as a cushion that has allowed carriers to weather the current oversupply. This resilience has delayed the market's natural rebalancing.

Highlighting the extremes in the market, she noted the anomaly of record highs in fraud and capacity without a corresponding drop in rates. "For the market to correct the oversupply, spot rates need to lower," she explained, indicating that a gradual market correction is in motion. The correction is seen in the uptick in bankruptcies this year, which exceed those seen in 2019, suggesting a shift may be underway.

The issue of fraud, exacerbated by the oversupply, was a focal point. Kendra revealed that Truckstop has been actively combating this rise in fraudulent activity, with thousands of accounts removed to uphold market integrity. In drawing a comparison to the role of credit card companies in e-commerce, she affirmed Truckstop’s dedication to safeguarding its users against fraudulent practices.

Until Next Year 

As the buzz of F3 fades into the rearview, the conversations don't end here. From the flood of 'oversupply' chats to the deep dives into tech's role in freight, the festival was more than just a meet-up; it was a think tank in motion. Our team left inspired, with our minds brimming with insights from the best in the biz.

Whether the casual catch-ups by the coffee stand or the intense strategy sessions, this year’s F3 reminded us that we’re all in this big, sometimes chaotic, but always moving world of freight together. So, until next year, keep those wheels turning, stay nimble, and let’s keep the conversation going. Because if there’s one thing F3 has shown us, it’s that the future of freight is a road we pave together.

If you’re not flying to Chattanooga in November, you are missing out. 

From November 7-9, 2023, the Scenic City will host the second annual F3: Future of Freight Festival. Set within the heart of Freight Alley and the birthplace of FreightWaves, the Chattanooga Convention Center will brim with experts, entrepreneurs, and leaders, all eager to share insights and spark conversations on the latest advancements and challenges.

Wondering which sessions to earmark? Here are three that you shouldn’t miss:

1. Fireside Chat: Tackling Unique Supply Chain and Logistics Challenges

Every shipment has its demands, but what happens when those demands become uniquely challenging? 

Ramona Hood of FedEx Custom Critical takes center stage to discuss these intricate dynamics. Her journey from an entry-level role to becoming the first Black female CEO of a FedEx operating company promises to offer inspiration and valuable insights into the nuanced world of special shipments.

2. Fireside Chat: Special Freight: The Niche Demands of Perishable eCommerce Freight

Juan Meisel from Grip has a wealth of experience navigating the intricacies of specialty shipments. His expertise in crafting logistics solutions for unique demands, such as ButcherBox's premium offerings, will shed light on the world of niche freight. Join the discussion on creating robust systems that ensure product quality and customer satisfaction, even when the stakes are high.

3. Keynote: What Happens in China Doesn't Stay in China - The Ripple Effects of the Chinese Economy on Global Supply Chain Stability

China stands as a monumental player on the global stage, but deciphering its economic heartbeat can be a daunting task. 

Leland Miller of China Beige Book International will demystify this, providing insights that span over a decade of research. His session promises to be an enlightening look into the subtleties and strengths of this economic powerhouse.

And… Don’t forget to swing by the Denim booth 

If you're attending F3, don’t forget to visit booth 11 in the main hall. Our team at Denim will be showcasing our latest AI-driven Invoice Audit and flexible factoring benefit. Plus, if you're up for a breather, challenge us to a round of foosball. We're keen to connect, share our innovations, and enjoy some friendly competition.

Mark your calendars for F3! See you there!

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Carriers, freight brokers, and logistics professionals converged in Houston, Texas, earlier this month for a sole purpose: growth. Even amidst a challenging freight economy, the FreightFest atmosphere radiated determination, resilience, and a commitment to evolve.

Our team from Denim experienced the spirit of FreightFest firsthand. Unlike other conferences, this event was laser-focused on growth through learning and networking. Every session was buzzing, with attendees diligently noting key insights and encouraging their peers. It wasn't just about absorbing knowledge; it was about fostering a community.

Let's dive deeper into some of the most impactful points from the conference:

1. Embracing technology to stand out

"You want to make it so easy for someone to do business with you that they don’t have a choice." - Adam Wingfield, Founder of Innovative Logistics Group LLC.

Integrating technology into operations is no longer optional. Adam suggested using real-time cameras inside reefers, illustrating the proactive measures carriers can take. Such advancements make the process transparent for customers, allowing them to track their product conditions. 

It's the age of convenience, and as rightly pointed out, even a hint of tech can edge out traditional advantages like being a family-owned business.

2. Excellence in service as a deal-breaker

"Shippers are going to be more selective with brokers. They will look for a specific kind of service, and we will see service offering push farther and farther.” - Kyle Litner, Strategic Advisor vHub, Rocket Shipping.

It's about more than just successfully delivering a load but providing a 5-star experience. Shippers in an oversaturated market have a plethora of options. While competitive pricing is crucial, what will set businesses apart is the ease and efficiency of their service.

3. Laser-focused business strategy

"We’re closer to the market shifting than not. If you know your business, you will attract the right business out there.” - Chris Jolly, The Freight Coach.

Awareness of market trends and a deep understanding of one’s business is pivotal. As observed in recent months, market dynamics have shifted. However, businesses attuned to their core strengths and market needs remain successful.

4. Cold calling is still the most effective way to build a business. 

“Cold calling is the most effective way to develop business. You have to get on the phone. Make 10,000 calls in a few months.” - Desmond Clark, Bear Down Logistics. 

And who said cold calling is dead? The personal touch of cold calling remains unbeaten in business development. The unanimous agreement on its effectiveness during the Broker Panel reinforces its importance. 

5. Patience in business development 

"Building a successful business requires patience and adherence to four core principles: 1. Call or meet face-to-face as much as possible. 2. Believe in yourself and stay positive. 3. Showcase unwavering persistence and consistency. 4. Demonstrate resilience in the face of challenges. " - Tyson Lawrence, President and Founder of Diablo Freight Ventures

Relationships and trust don’t happen overnight. Patience is key. Staying positive, consistent, and pushing through tough times can set a broker apart. 

6. Transitioning roles for scalability 

"Step out of the role of being the all-star player to being an all-star coach to make my new team be all-star players.” - Kamard Johnson, CEO of GTT Commercial Tires 

In the early stages of a business, CEOs often wear many hats, driving growth with their direct involvement. But as a company scales, successful leaders recognize the need to transition from being the leading player to a guiding coach. This shift is pivotal for sustainable growth. 

To effectively make this shift, CEOs should prioritize hiring talent that aligns with the company's vision, empower them through trust and delegation, and foster open communication. This approach not only allows leaders to focus on broader strategy but also ensures that the entire team can evolve into all-star players, collectively driving the business forward.

7. Staying in business is the ultimate goal 

"All markets have strong and weak cycles. Do not allow that to force you into fear or unnecessary decisions. The ultimate win in business is staying in business.” - Kamard Johnson, CEO of GTT Commercial Tires. 

Market fluctuations are inevitable. Yet, enduring the ebbs and flows without succumbing to panic is the mark of a resilient business and business leader. 

8. Reducing owner dependence

"You are the lid on your business's value-creating potential. The only way to remove the lid is to give your influence and authority away to your team.” - Spencer Tenney, President and CEO of Tenney Group.

To maximize growth, business leaders must transition from being the central figure to facilitating team potential. A company that's overly reliant on its owner can be vulnerable. By empowering and upskilling their teams, owners not only elevate their business's potential but also make it more attractive to potential buyers and investors.

9. Selective clientele

"Play with those that want to play with you.” - Mitchell Ward, CEP of MW Logistics. 

Choosing the right clientele is as vital as offering the right services. Time and resources are wasted on clients who aren't a good fit for your business model or values. Prioritizing clients who align with and appreciate your ethos ensures better collaboration, smoother operations, and increased profitability.

10. Technology as a Growth Catalyst

"We’ve reached 92% automation with accounting software. The goal is not to replace people. You want people to stay and continue to do good work.” - Mitchell Ward, CEP of MW Logistics. 

Embracing technology shouldn't equate to sidelining human resources. Instead, automation should be viewed as a tool that alleviates routine tasks, letting employees focus on value-added roles. By optimizing processes, technology allows businesses to scale efficiently while preserving the integral human touch.

11. Financial Prudence

"We close our books in 3 days. Cash is so important. And make sure no one customer is more than 4% of the business.” -Mitchell Ward, CEP of MW Logistics 

Maintaining financial discipline ensures business longevity and resilience against market fluctuations. Promptly closing books indicates efficiency. Ensuring no single client dominates the revenue stream protects against potential losses. This approach fosters diversification, buffering the business against unexpected downturns.

12. Embracing Change

"Don’t be afraid to be redirected.” – Jorie Myers, Founder of Transportation & Logistics Clubhouse and Atlanta Dispatch

Change is the only constant, especially in dynamic industries like freight and logistics. While it's vital to have a direction, flexibility in responding to market shifts, technological advances, or client needs can open doors to innovative solutions and untapped market segments, fostering growth and sustainability.

These events aren't just about the latest in tech or business strategies. They're about the handshakes, the exchanged business cards, and the real conversations. In an era dominated by digital interactions, there's something irreplaceable about meeting face-to-face. Both industry veterans and newcomers walk away with fresh insights and meaningful connections. It's a testament to the enduring importance of coming together to share and learn.

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Inefficiencies in Accounts Payable can feel as tricky and intimidating as mythical monsters. Just when you think everything's running smoothly, these AP beasts emerge from the shadows, threatening to disrupt your back-office and drain your cash flow.

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These sneaky troublemakers hide behind the scenes, throwing wrenches into your workflows when you least expect it. If your office has been feeling the weight of a productivity slump, it might be the work of four notorious AP monsters:

• The ScatterSphinx of Disorganized Documents
• The Phantom of Past Processes
• The Tardy Troll of Late Payments
• The Manual Date Entry Medusa

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Fear not! Denim’s Ectomobile is here to help you conquer those back-office demons, banishing time-sucking ghouls from your brokerage once and for all. Let’s take a closer look at these troublemakers—and how to defeat them! Or, take the quiz to find out which monster is haunting your back office!

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1. The phantom of past processes 

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What it is: 

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This ghostly presence haunts your AP operations with outdated, manual processes. It keeps your office stuck in the past, preventing you from embracing modern, automated solutions. You might recognize its whispers of "we’ve always done it this way" or “I prefer doing it manually.”

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How it hurts you: 

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The Phantom drags down your efficiency. Tasks that could be automated—like processing invoices or updating payment statuses—become time-consuming and prone to mistakes. This slows down your cash flow and ties up your team's valuable time.

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How to defeat it: 

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Adopting new software and automation tools can send this Phantom packing. Digitizing workflows like payment processing speeds up operations, reduces human error, and frees up your team to focus on more valuable tasks. Automation not only saves time but also improves accuracy, ensuring everything runs smoothly.

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For example, solutions like Denim’s tech-forward factoring tools eliminate manual input for tasks such as sending payments, data entry, or updating carriers on payment status. With automation, you can reduce time spent on these tasks by up to 75%, while boosting the accuracy and speed of your AP processes.

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Begone, dark phantom! You have no hold here!

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2. Scatter sphinx of disorganized documents 

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What it is: 

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The ScatterSphinx is a trickster that thrives in chaos, turning your document management into a confusing labyrinth. It hides rate confirmations behind endless email threads, buries proofs of delivery under piles of paperwork, and scatters crucial files like leaves in the wind. Searching for the right document? The ScatterSphinx will have you solving riddles in your search bar, wasting precious time.

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How it hurts you: 

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This monster creates chaos and confusion, especially when you need documents quickly. The endless hunt through emails, misplaced files, and paper stacks becomes a major time sink, leading to missed deadlines and frustrated team members. When the ScatterSphinx is on the loose, efficiency takes a big hit.

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How to defeat it:

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Beat the ScatterSphinx by setting up a simple, centralized system for managing documents. Use a document management tool—whether it’s a cloud platform, dedicated inbox, or specialized software—to keep all your files in one place. Organize them clearly (e.g., rate confirmations, proofs of delivery, invoices) with easy-to-understand names, so you can find what you need without getting lost in the clutter.

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For example, Denim’s Document Inbox streamlines this process, letting you collect and manage load-related documents in one spot. No more digging through email threads or chasing down files—just quick access to what you need. With features like automated document attachments and a user-friendly upload portal, you can get paid faster and cut down on time-wasting manual tasks.

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ScatterSphinx, your riddles are no match for a well-organized office!

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3. The Tardy Troll of Late Payments

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What it is:

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The Tardy Troll loves to lurk around your payment processes, causing delays and holding up payments to carriers. This stubborn beast thrives in confusion, slowing down approvals and making sure that carriers wait longer than they should to get paid. When the Tardy Troll is around, smooth cash flow and timely payments become distant dreams.

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How it hurts you:

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Late payments frustrate carriers, strain relationships, and can even lead to losing valuable partners. When carriers aren’t paid on time, it impacts their ability to stay on the road and manage their cash flow. Plus, dealing with the aftermath—like answering calls from frustrated carriers or processing late fees—wastes even more time and energy.

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How to defeat it: 

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To banish the Tardy Troll, streamline your payment processes and consider using automated payment systems. Set up clear payment schedules and make sure your team has easy access to payment status updates, so they’re not stuck chasing down answers. Automated systems can help ensure payments are made on time, reducing manual errors and speeding up the process.

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With Denim’s integration with MCP, you can pull in carrier data and pay carriers according to their preferences, ensuring everyone gets what they need without delays. Plus, Denim offers QuickPay without additional fees, allowing brokers to pay carriers as quickly as 1-2 business days. Even better, brokers can add a fee for QuickPay services and keep the profits, turning timely payments into a potential revenue stream.

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Tardy Troll, your days of slowing down payments are over—Denim’s QuickPay sends you packing faster than ever!

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4. The Manual Data Entry Medusa 

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What is it: 

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The Manual Data Entry Medusa thrives on repetitive, mundane tasks, trapping your team in a tangle of duplicate data entry. Her tangled mane of invoices, spreadsheets, and forms forces your team into endless cycles of typing, re-typing, and double-checking—turning even the most efficient operations to stone with boredom and inefficiency.

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How it hurts you: 

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Manual data entry is slow, tedious, and prone to errors. It drags down your productivity, creating delays in payment processing and increasing the chance of costly mistakes. When your team is stuck re-entering data across multiple platforms, it’s tough to keep things running smoothly or focus on more strategic tasks.

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How to defeat it:

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Beat the Manual Data Entry Medusa by using automation tools that remove the need for tedious, repetitive tasks. These tools help eliminate data silos by seamlessly connecting different parts of your workflow, ensuring that information flows smoothly between systems. This reduces the need for manual input and ensures that your team isn’t bogged down by duplicating data across platforms. If automation isn’t an option, using templates and standardized processes can still cut down on time spent on these mundane tasks.

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With Denim’s automation tools and integrations, simplifying data entry is easier than ever. Denim integrates with over 16 TMS platforms and carrier onboarding systems, making setup a breeze. What once took hours of duplicative work is now reduced to just a single click. You can trust that load data pulled into Denim is accurate, reducing human error and ensuring jobs are processed correctly the first time. This means faster payments and avoiding overhead costs, leaving the Medusa’s grip far behind.

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The Manual Data Entry Medusa, your days of trapping our team in endless data entry are over—Denim’s automation turns you to stone, and not the other way around!

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Ready to Send These AP Monsters Packing?

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With the Phantom of Past Processes, ScatterSphinx, Tardy Troll, and Manual Data Entry Medusa no longer lurking in your back office, you can finally breathe a sigh of relief. By adopting the right tools and strategies, you can turn these pesky creatures into mere bedtime stories—no longer haunting your daily operations.

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From automating tedious tasks to streamlining document management, a little preparation and the right technology can go a long way. And if you’re looking for an ally in this quest, Denim’s solutions are here to help you conquer the toughest AP challenges with ease.

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So why keep battling these back-office beasts alone? Connect with one of our experts today, and let’s banish inefficiencies together—no monster is too scary when you’ve got the right team on your side!

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Farewell, AP monsters—your days of terrorizing operations are over!

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Leading a freight and logistics company is risky. Unexpected challenges surface that can be catastrophic. The recent closure of Meadow Lark and Convoy, after 40 years of reliable service, serves as a reminder.

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A complex and interrelated economy like ours means the stability of our business partners & stakeholders, especially freight brokerages, can have a ripple effect on our own success. If you're working with a brokerage that suddenly ceases operations, what's the path forward?

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Is there a way to safeguard your dues in such situations? Let’s explore this further.

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Warning Signs A Business is Going Under

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Keeping a close eye on your cash flow is a no-brainer, but fleets often overlook the need to evaluate risk in their business partners

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In a tight market, the last thing you’d want is to be caught unaware when the brokerage or shipper that owes you for last week’s loads files for bankruptcy. Abrupt closures cost you business time and resources. 

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To avoid surprises, keep these things in mind: 

1. Fluctuating Payment Periods: If your broker's payment periods are trending upwards, such as taking 10 days, then 15 days, then 20 days, and so on over weeks or months, it's a cause for concern. A rising Day of Sales Outstanding (DSO) can indicate potential cash flow problems.
2. Frequent Changes in Management: A revolving door at the executive level can signal internal issues.
3. Monitor the news: Keep an eye on the news for negative press signals. Look out for news on layoffs, bad funding rounds, or slowing operations.
4. Withdrawal from Long-term Contracts: Pulling out of or hesitating to enter long-term commitments is a warning sign of internal changes coming. 
5. Sudden Downsizing: A quick staff or operational scale reduction may signal a company’s inability to cover salaries. ‍
6. Lack of Transparency: If a company is reluctant to share financials or other critical information, proceed cautiously.

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Freight Collections After a Bankruptcy

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So what if it’s too late and your partner closes down but owes you money? Don't panic. There's a roadmap to recover your dues even after a partner's bankruptcy.

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1. File a Claim Against the Broker Bond ASAP.

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Freight brokers must have a broker bond (often referred to as a BMC-84) to operate legally. This bond is in place to ensure brokers fulfill their financial obligations to carriers and shippers. 

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If a broker defaults or goes bankrupt, carriers can file a claim against this bond to recover their dues. 

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Unfortunately, filing a claim doesn't always guarantee a full payout. The total amount might not cover all claims because there might be multiple claims against the same bond. 

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2. Reach Out to Shippers Directly.

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Directly contacting the shipper is likely the fastest route to recover your dollars. 

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Look at any documentation you have on the load and see if you can find a direct point of contact at the shipper. If you find a contact, call them ASAP to explain your situation. Be prepared to show the Proof of Delivery, invoice, and rate confirmation. 

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If you don’t have a personal contact, call the main line and look for the billing department. 

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Shippers have a vested interest in maintaining operational continuity. They don't want disruptions, and paying carriers is part of that smooth flow.

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3. Consider a Collections Agency. 

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Engaging a professional can sometimes expedite recovery. Collections agencies have the expertise and resources to pursue outstanding payments aggressively. They operate on a commission basis, typically earning a percentage of the collected amount.

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If you're uncertain about which agency to work with, reach out for recommendations. Leveraging trusted industry contacts can point you to reputable agencies.

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4. Hire a Lawyer and Take the Case to Court.

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When the owed amount justifies the investment, legal recourse can be the necessary path. Sometimes, the only remaining option is the court. It's a route that demands time and money. However, with a solid case, carriers frequently find favorable outcomes.

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Before pursuing collections and the court system, ensure the amount justifies your time and money investment. Bankruptcy proceedings can be complicated and prolonged. It's not a situation where a passive approach pays off. 

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Sometimes, it is more profitable to take the financial hit if you have a small amount outstanding. You could make up that cash by investing your time into new business instead of recovering old loads. 

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However, should you decide to pursue collections, swift action is crucial. The sooner you act, the better positioned you'll be to recover your funds. Remember, multiple creditors might be vying for the same limited pool of resources.

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Preventing Collections Headaches 

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Working with a Factoring Company  

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Staying on top of warning signs for all your customers and partners is tough. It requires time, due diligence, and regular communication. You may want to consider protecting your business with factoring. 

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Factoring is a financial solution where companies sell their invoices to a third party (a factor) at a discount. The factor advances the amount owed within days to use to pay for fuel, repairs, and grow your fleet. The factor then assumes the responsibility of collecting the invoice amount from the shipper or brokerage.

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If you use a factoring company with a great credit and risk management team, they will act as your risk barometer. A great factoring company will proactively notify you if they think credit is deteriorating for a customer or broker.  

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Partnering with a factoring company, especially one like Denim, offers several benefits:

• Immediate Cash Flow: Instead of waiting on uncertain payments, especially in precarious economic times, you receive an immediate influx of cash, strengthening your financial position.
• Risk Assessment: A thorough evaluation of the client’s customers is conducted before entering into a factoring agreement. This adds an extra layer of due diligence to help identify risky customers.
• Expertise in Debt Recovery: Factoring companies have experience in collections and may have established procedures for recovering funds from bankrupt entities, giving them an edge in maximizing recovery rates.
• Ongoing Monitoring: Factoring companies often continue to monitor the financial health of both the client and the client’s customers, providing an ongoing risk assessment.
• Business Analytics Dashboard: Tracks key metrics like slowest paying customers and DSO so that you can track the financial health of your business. 

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By effectively using factoring as a financial tool, businesses can maintain liquidity and gain a valuable partner in assessing and monitoring the financial health of their clients.

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Schedule a Demo with Denim to learn how our best-in-class credit risk team can help protect your business from unpaid invoices. 

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Credit Information to Evaluate Risk

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Steve Hunt asked a good question about risk evaluation during our recent podcast episode with The Freight Coach. Whether you rely on a factoring company or take the self-financing route, having the right information is crucial for gauging financial risk.

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When partnering with a factoring company, they spearhead gathering the necessary data. However, given that many shippers operate as privately held entities, obtaining comprehensive financial details isn't always straightforward. Many companies aren't extensively profiled on credit reporting platforms such as Experian or other online databases.

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To thoroughly assess risk or collaborate effectively with your factoring company to determine a suitable credit line, it's imperative to directly engage with your customer to gather the following details:

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1. Company and Contact Information:

• Legal Name, Doing Business As (DBA), and Business Structure*
• Essential contacts, including the CEO, CFO or Controller, Procurement, and Accounts Payable*

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2. Banking and Financial Data:

• Bank Name
• Account Number
• Average Monthly Revenue
• Existing Loans or Debts

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3. Trade References:

• Supplier Names, Credit Limits, and Payment Terms*

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4. Legal Insights:

• History of bankruptcy and ongoing legal proceedings

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5. Key Financial Metrics and Documents:

• The most recent audited financial statements, encompassing the Balance Sheet, Income Statement, and Cash Flow Statement
• Tax returns spanning the previous 2-3 years
• Bank statements covering the last 6-12 months
• Vital financial indicators such as the Debt-to-Equity ratio, Current Ratio, and Profit Margin
• Detailed Accounts Receivable and Payable Aging Reports

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This checklist is designed to help you seek detailed information from your shippers. While you might not get every piece of data you ask for, simply asking can provide more insights than if you didn't.

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However, gathering this information is just the first step. It's crucial to cross-verify these data points with reputable credit bureaus such as Ansonia, Equifax, Experian, or Moody’s.

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Having such detailed data at your fingertips allows you to make well-informed decisions regarding financial risks. It also provides your factoring partner with the insights needed to swiftly approve essential credit limits.

Navigating Bankruptcies with Speed and Diligence

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Operating in a landscape of financial intricacies demands vigilance and proactive planning. When business partners face financial troubles, it's vital for you to quickly identify red flags and be equipped with tactics to recover due amounts. 

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However, simply reacting to challenges isn't enough. Proactive financial solutions, like factoring, are pivotal in ensuring stability. 

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By utilizing such avenues, logistics companies can unlock immediate cash flow, eliminating the often prolonged wait and unpredictability of payments. Teaming up with a financial partner like Denim adds another layer of assurance. With features like ongoing credit monitoring and collections services, you are better equipped to weather the current freight market. 

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Disclaimer: The contents of this article should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult with counsel concerning your situation and specific legal questions.

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