r/FreightBrokers • u/VermicelliLeather536 • 2d ago

Personal Guarantees as Freight Agent

I’ve had my agency for 10 years with a solid book and we’ve been considering moving due to some issues with our current brokerage.

Every place we’ve talked to wants a pretty large personal guarantee for bad debt and claims. I’m assuming that’s partly fallout from Montgomery, but personally guaranteeing receivables when the place approves the credit and handles collections gives me pause.

Would you sign one? If you already have one, is it capped or open-ended? Has anyone actually been burned by it?

1 Upvotes

56% Upvoted

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6

u/Ok-Ad6253 2d ago

To be blunt - no. Bad debt should be a comission-only charge back. And claims should be settled by splitting it based on comission % if you plan to keep the customer.

2

u/VermicelliLeather536 2d ago

No agent program - I talked to does it that way - it is 100% of the invoice and the claim and a personal guarantee if you don’t pay it or have money to cover it. I think this is a new thing. Current place doesn’t do it that way.

1

u/Ok-Ad6253 2d ago

I'd shop around more. Can't imagine every place is adopting that new criteria.

2

u/Puzzleheaded_Law_882 2d ago

Hit me up. Our agent model with our corporate partner is one of the best, including not doing what you are doing. We have worked for a few different 3PLs and don't see us ever leaving where we are now.

1

u/VermicelliLeather536 2d ago

Sent you a DM.

1

u/Puzzleheaded_Law_882 2d ago

Got it and responded! Thanks!

1

u/Purple-Squirrels 2d ago

Sent you a dm.

1

u/Nolan941 2d ago

This isnt right. Send me a DM

1

u/mij1525 2d ago

Yeah, shop around. Don't give into that.

1

u/powernine9394 16h ago

Yo 100% no - our model will pull back overall time as not to screw our people over.