Truck Load Boards: Are They the Right Choice for Your Company?

February 11, 2019

Load boards (also known as freight boards) are a platform where shippers and freight brokers can post loads online. These systems allow shippers and carriers to find each other and make arrangements to move freight. Start-up trucking companies depend on load boards to get their business off the ground. Load boards have a lot of advantages because it makes it easy for truckers to quickly and effectively find loads. However, it also has disadvantages as well. Continue reading to find out how to use load boards to grow your trucking business.

The Benefits of Using Load Boards 

With the advancement in technology, the process of matching trucks and freight has become a lot simpler. It started with load boards evolving to online-based load matching services that opened a door for truckers, shippers, brokers, and 3^rd parties, to have more options than ever to find trucks or loads.

• Load boards are easy to use and the information is kept up-to-date.
• There are many websites available where the load boards are free or fairly inexpensive to use.
• Most load boards can be assessed through a mobile device so truckers can be planning for their next load while they are on the road.
• Load boards are a great tool when the shipper has overflow freight that quickly needs to be moved.

 4 Top Load Board Websites

• Dat.com – DAT is the leading truckload freight market in the United States. Trucking brokers, shippers, broadcast organizations and business analysts depend on DAT for market trends and information.
• Directfreight.com – Direct Freight is a network that helps shippers and freight brokers find one another online. By combining internet, email alerts and truck stop screens, drivers and dispatchers are able to quickly get their freight moving.
• Truckstop.com – Truckstop.com’s committed team, help truck drivers and their freight partners grow their business by providing a better way for truck drivers to find loads.
• Convoy.com – Through the use of technology, Convey has created software specifically designed to benefit truckers and companies shipping freight. As more truckers and companies shipping freight become part of the network, the software will create smarter routes by batching shipment for their drivers. As a result, their business flourishes due to saving on transportation and limiting environmental waste.

The Drawbacks of Using Load Boards

Depending solely on load boards may not be in a company’s best interest. If truckers are not picking up profitable loads, it is a waste of time, money, and resources. This is becoming more of an issue since the load board market is oversaturated with competition and there is a multitude of providers. Keep the following in mind when using load boards:

• There is nothing wrong with working with a broker but they do take a share of the profits.
• Truckers end up pulling loads for several different companies and brokers instead of building relationships.
• Trucking companies could end up with a shipper or a broker that are unable to pay.
• Some shippers and brokers are slow payers – This can take a toll on your cash flow and make it very challenging if not impossible to pay for fuel, repairs, and your drivers.

Once a start-up trucking company has gained momentum, load boards are best used as a fallback to alternative methods such as networking and building relationships with other shippers. Most established trucking companies agree that working with shippers provide better job satisfaction, consistent loads, higher profit margins, and a dependable source of business.

How Start-Up Trucking Companies Deal with Slow Paying Customers

In an ideal world, finding shippers that offer quick-pays is who shipping companies want to work with. Yet, this scenario is not always a viable option. Most shippers and brokers will pay anywhere from net 30-days to net 90-days. This makes it very difficult for new trucking companies to make ends meet when they are going through the process of developing and establishing their business. The solution many trucking companies use is invoice factoring. Invoice factoring allows trucking companies to sell their invoices to a factoring company for instant cash. This allows trucking companies to focus on growing their business and not have to worry about how they are going to pay for truck repairs, payroll, fuel, etc.

Get a Factoring Quote

TCI Business Capital makes invoice factoring easy. We will buy all of your outstanding invoices for an immediate cash advance so you can focus on running your business.

The benefits of invoice factoring with TCI Business Capital include but are not limited to:

• Same-Day Cash on Receivables
• Low Factoring Fee’s
• Month-to-Month Contracts
• Customized Programs
• Dedicated AR Specialists
• Full Treasury Services
• Free Credit Check on New and Potential Customers
• No Additional Debt Created
• 24/7 Online Reporting
• More than 20 years of Experience

To apply for a custom factoring program fill out the form below or give us a call at 800-707-4845. In as little as 15 minutes, we’ll get you a free, no-obligation consultation and quote for a custom program to meet your business demands.