How to Get a Freight Broker Bond?
Channel: Lance Surety Bond Associates, Inc.
Date: 2015-01-02

Source: https://bit.ly/3qwzpOi

Description:
To become a freight broker you need a license, but before you get a license you need a freight broker bond. So what’s a freight broker bond and how do you obtain one?

Freight broker bonds are required by the Federal Motor Carrier Safety Administration to guarantee that freight brokers keep their contractual agreements with shippers and carriers. They are also known as a BMC-84 surety bond, trucking surety bond, and a transportation broker surety bond.

Freight broker bonds are meant to guarantee that shippers and motor carriers are compensated if the broker fails to comply with its contracts and agreements. For example, if a freight broker is delaying or refusing payment, the freight broker bond goes into effect and compensates the carrier.

Applying for a freight broker bond is simple, automated and can be done online. You can submit your online application with Lance Surety Bonds. Within minutes we will match you with the surety bond company which offers you the best quote.

To offer a rate, the surety bond company will require basic information regarding your company. It will also review the personal credit of the business owner. In certain cases, you can strengthen your application by submitting personal or business financial statements.  

Credit score is reviewed by bonding companies as a way to assess a business owner’s ability to stay on top of their financial responsibilities. There is often a correlation between an owner’s credit and the likelihood of triggering a claim. If there is a claim against you, it is the surety bond company’s responsibility to financially compensate for all losses inflicted. Therefore, people with clean credit history are more likely to receive a bond.  

But that doesn’t mean you can’t get bonded if you have bad credit history. You simply might have to pay a slightly higher price for a bond in order to compensate the surety for the additional risk. 

The current full amount of a freight broker bond is $75,000. Of that, you only pay an annual premium, which is a small percentage of the $75K. Normally, applicants with clean credit history may pay between 2 and 5 percent.  Freight brokers with damaged credit can see quotes between 5 and 13 percent.

Additional resources:
1. "The Complete Compliance Guide for Freight Brokers" - Download our FREE e-book at https://bit.ly/3isydqP
2. If you want to calculate the cost of your freight broker bond, visit https://bit.ly/3D31amq
3. If you're thinking of starting a freight brokerage, here is Your Ultimate Infographic Guide: How to Become a Freight Broker -  https://bit.ly/3tw2lrA
4. Wondering what makes a freight broker successful? Check out "How To Be A Successful Freight Broker" infographic at https://bit.ly/3wM2xoL
5. If it's time to renew your freight broker bond, check out "The Ultimate Freight Broker Bond Renewal Guide" at https://bit.ly/3qt5R44/
6. For more information on bad credit surety bonds, visit https://bit.ly/3quFv1n
7. Want to learn more about how to lower your surety bond rate? Visit https://bit.ly/36nb6vh
8. If you need additional educational materials, here are the most recommended and authoritative freight broker training books: https://bit.ly/3qvPR17
9. To get a FREE surety bond quote, apply online now: https://bit.ly/3NdlYwm