In the last post, we mentioned the four items needed to obtain your broker authority. Now, let’s look at what to expect if you make installments for your trust fund and after you complete the other applications for your broker authority.
The cost of the surety bond or trust fund is around $2K to $4K depending upon which vendor and program you select.
With the company we work with (have worked with them for over 10 years), you may make a one-time payment of $3K each year for the $75K trust fund. Or, you may make quarterly payments of $995.
If you select the quarterly option, your start up cost will be the $995 for the first quarter plus about $405 for your MC#, BOC-3 and the UCR. $995 plus $405 equals $1,400. This will get you started.
Now, what about paying your trucks on time? You generally will pay your trucks before you get paid from your customer. If you have a cushion between $3K and $10K, for example, you can start with these amounts.
If you don’t have a cushion of money, you can sell your invoice to a factor. The factor will provide money to you upfront and you pay 3%-5% perhaps. This is not the cheapest way to get started. But it IS a way if you have no other better alternative.
You can learn a lot about my training BEFORE you are expected to pay for the program. Go here to find some free or low-cost materials that will help you understand the industry better plus give you an idea on the type and quality of our training. Go here now: http://www.atexfreightbrokertraining.com/inanutshell.shtml