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We've been talking to transportation factors who have shared with us all the pressures they're experiencing in the market.
Fraud is a top concern. It's running through the transportation industry like a bull in a china shop.
Last year, one trucking company was hit hard by a crook who stole their identity. They then posted loads using their Department of Transportation number, collected payment, then dropped off the face of the earth.
Of course, the real company owners were left to pick up the pieces.
Experts say things like double brokering and identity theft are costing the trucking industry over $100 million each year.
Fraud tends to have a trickle down impact on whoever's linked to the chain. Let's take a closer look at risks for transportation factors and how NN6 can help.
Risky Business
A recent IFA magazine article, dives into some of the fraud risks for factors who service the transportation industry.
Over the last 10 years, the transportation sector has undergone a pretty significant transformation, mostly in the realms of yield and rates charged.
Back in the day, most transportation invoice financing was handled by independent factoring shops. Fast forward to the present and we see big banks have largely taken this over.
Smaller, independent factors have a tough time competing with the super-low rates offered by the big guys. These low rates translate into less revenue to underwrite invoices.
The big guys also have the manpower and resources to come up with their own ways to automate processes and underwriting, speed things up, and service even more clients.
To compete with banks, the independent shops may cut corners and skip certain procedures just to keep things moving. Speed can be a good thing, but not when it comes at the expense of your firm's security.
Cutting back on procedures leaves you more open to fraud risk, but clunky, outdated systems are frustrating and time consuming.
When you have a deal on the line, time is literally money.
Skipping a few steps here and there might help you stay competitive, but is the door you leave open to fraud risk worth it?
Fighting back
To fight fraud, you need to understand the fundamentals. You need to spot problems before they escalate and your team has to be able to execute.
NN6 makes mastering these two fundamentals easier and quicker than ever.
Under our platform, you'll have access to notification and verification tools to help you stop problems before they start.
Know exactly when and how you've notified account debtors without a lag in the process. You also get a detailed look at your portfolio and with a few clicks, view nuances like confirmations, or what's been pre or post verified under estoppel.
Our streamlined reporting features give you access to portfolio trends in real time so you never miss a beat. Run them with ease through our user-friendly portal and kick those old clunky reporting tools to the curb.
On the execution side, you need clear communication across the board to properly mitigate operational risk. We have a built-in task management system that provides you with transparency into organizational processes.
You'll always know who's responsible for what. No more wasted time or headaches trying to get to the bottom of an issue.
When you can uncover problems in real time and solve them quickly, you can stay competitive without cutting any corners.
Ready to see what NN6 can do for you?
Contact us to schedule a demo.
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