Natotruckingllc

1) What is a Transportation Broker? A freight broker arranges for the shipment of freight by truck. And a good way to think of us is like a travel agent but we move freight instead of people. Using a broker is giving you more access to trucking companies that you otherwise wouldn't have access to. It's like going to a store or a mall and having multiple different options rather than going to a store where they only have a very small selection. There are hundreds of thousands of trucking companies in this country and most shippers would have a very tough time weeding through finding the right trucking company for their needs. Brokers are perfectly geared to do that, to bring that selection to their customers. Fraud and left are rampant in the transportation industry and a quality broker will help protect you from those types of problems. A broker providing a high level of customer service is excellent at communication. They will communicate with both the shipper and the receiver before the shipment moves to make sure everything is set. They will also communicate with the carrier throughout the shipment to make sure there are no problems; and if something does crop up they can fix it before it turns into a service failure. Transportation brokers invest heavily in technology and the ability to give their customers access to information that otherwise they would not have. And you can leverage this to get information whether it is on-time percentages, the number of shipments you've moved, where they've gone, the amount of money you've spent, to help you make better decisions and control your transportation program. Now that you know what a broker is, please see our video on the top 5 things you should ask when selecting a broker. 

 2 Surety bonds hold business professionals responsible for acting ethically and lawfully while on the job. When it comes to freight broker bonds, the obligee requiring the bond is the U.S. government, the principal required to purchase the bond is the freight broker and the surety responsible for producing the bond is the underwriting company. The Federal Motor Carrier Safety Administration (FMCSA) requires freight brokers and freight forwarders to get a $75,000 surety bond before receiving a license. What does a freight broker license bond do? In order to issue a freight broker license, the FMCSA requires all freight brokers and freight forwarders to file either a BMC-84 surety bond or a BMC-85 trust fund agreement. This requirement exists to ensure that licensed freight brokers and forwarders are held to certain standards, as well as to prevent fraud and failure to pay motor carriers or shippers. The primary difference between the BMC-84 bond and the BMC-85 trust fund is the cost. Freight broker bond premium is a percentage of the full amount of the bond, paid annually. The surety bond allows the business owner to legally register their brokerage, without posting $75,000 as collateral in a trust fund[a]. How much does a freight broker license bond cost? For applicants with excellent credit, SuretyBonds.com can issue these bonds for as little as $938 in many states. Brokers wanting to renew their bond may qualify for the best available premium after a year or two of conducting business without having any claims filed against the bond. Since freight broker bonds are inherently risky, underwriters must review all applicants’ credit and financials in order to determine an appropriate premium required to write the bond. How do I apply for my freight broker bond? 1. Step 1: Apply online, and let our surety experts do all the work for you. 2. Step 2: Pay for your bond. We offer quick, easy and convenient payment options. 3. Step 3: Receive your bond. We will instantly send you a digital copy of your bond via email. This bond is filed electronically by us and submitted directly to the FMCSA on your behalf. No physical copy of the bond is ever issued. Have any questions concerning your freight broker bond? Talk to a surety specialist today by calling 1 (800) 308-4358 or complete our bond request form online and an expert will contact you immediately.

 3) In this video we will simplify and guide you through the entire process of becoming a freight broker, but you can always refer back to our guide for more detailed information on every step of the process: https://www.suretybonds.org/the-complete-compliance-guide-for-freight-brokers The first step is to prepare for your freight brokering job by having some experience in the transportation industry, or attend a Freight Broker training school to develop the necessary skills in order to help you succeed. Next, you will need to choose a company name and register your business with the US Patent and Trade Office, and select the type of business entity you would like to register. You will also need to find the right carriers that work in the same field of operations that you have chosen for your business. Afterwards, you will need to get your USDOT number which will help you apply for your MC number. Once you have your MC and USDOT numbers, you will need to apply for a BMC-84 freight broker bond which is currently $75,000. The cost you pay is only a small percentage of the full bond amount, and is also known as your surety bond premium. With a good credit score, you can expect to pay around $1,500 to $3,800. The stronger your financials are, the lower your bond cost will be. This guarantees that you will follow all applicable rules and regulations in the freight broker industry, and will also act as an additional line of credit for your business. With your surety bond and MC number in hand, you will also need to acquire general liability insurance for every state that you would like to conduct business in. After that, you can designate process agents in those specific states through a BOC-3 form, and begin setting up your physical office, whether that is in your home, or in an office building. After you have set up your office, and met all the licensings and business requirements from the FMCSA, your final step is to obtain some adequate operational capital and market your new business accordingly throughout your area of operations. We hope this freight broker checklist has been helpful for you, and you can always apply for the best freight broker bond rates with Lance Surety Bonds today! https://www.suretybonds.org/freight-broker-bond-application
x