Freight Broker Bonds also known as a Freight Broker Surety Bond, BMC-84 Bond, BMC-85 Bond, Property Broker Bond, and Freight Forwarder Surety Bond are necessary for operation as a freight broker in the United States.
They are regulated by the Federal Motor Carrier Safety Administration (FMCSA). The bond demonstrates financial responsibility of a broker, guaranteeing payment to motor carriers and shippers if a broker fails to comply with its contract and agreements. Generally a BMC-84 serves as a more affordable short-term option to a BMC-85.
Until 2013 the bond requirement for opening your own freight brokerage was $10,000 dollars. It had shown to be a substantial amount of overhead required to start your business as a broker but when the bond went up to $75,000, opening your own brokerage seemed out of reach to most. Many brokerages closed their doors because of the 750% increase! But it doesn't have to be this way, there are options that can make it less expensive to start your own Freight Brokerage.
The BMC-85 is a surety bond that you pay $75,000 up front for. It is essentially a trust fund. If ever you decide to go out of business, you can simply cash it out and walk away. Bernard Fleischer & Sons Inc. (BFBond.com) offers these surety bonds.
But not many people have an extra $75,000 to put aside, thankfully for the majority of those interested in starting a freight brokerage, there is a much less expensive option available to you in BMC-84 Bonds.
A BMC-84 surety bond will serve the same purpose as a BMC-85 surety bond for a brokerage but the cost is dramatically less. It is a line of surety credit to you, lent under the conditions that you agree to follow FMCSA regulations.
The fee for this credited version of the bond is about 1.5% annually of the total bond amount if you have good credit. With average credit you are probably looking at a rate around 3%.
How to Get a Freight Broker Bond FAST!
Applying for a Freight Broker Bond is not difficult, as we’ve simplified the process for you into easy to understand steps, which can be found on our Freight Broker Bond application.
Finally, if you would like to speak to a live customer service representative to walk you through the process of applying and getting approved for a Freight Broker bond today, we are here to answer all questions.
Our professionals are committed to easing the process for you. call us at (800) 921-1008, Live Chat with us below or contact our Bond Manager at Bonds@BFBond.com