Actually, getting a traditional bank loan for a freight broker start up might be much easier than most other types of business enterprises. For those businesses that have a retail store front, equipment or inventory, the banks are always looking for a lot of collateral. I used to joke and say they will take your child or favorite hunting dog for collateral if they can.
But, if things go bad, banks really don't want to get stuck with inventory, equipment or even a whining kid or a dog that barks all night. So, I have a suggestion for you IF you are searching for some start up funds.
There is a relatively new type of lending called "Peer to Peer". This method involves individuals who put up their money for other individuals. It is not a haven for anyone with bad credit - but it may be more convenient than a bank.
Now, I am only suggesting that you research this alternative. I have NO personal experience with "P to P" lending. So, I cannot tell you anything more than to say - do some research. "Google it" on the Internet and see what you come up with. There are 3-5 companies that are administering these loans and it may be just what you need.
Go to www.ezines.com and do a search on "peer to peer lending". You will find a number of articles there.
You only need a cushion of $3K-$15K to get started as a freight broker. This will allow you to pay your trucks on time. I have heard stories of needing $50K-$300K. This is malarky unless you are intending to move 25 to 150 loads or so right off the bat (a feat which almost no newbie will be doing).
Even if you don't have a cushion to pay your trucks on time, you can use a factor to get started. They will buy your accounts receivable at a discount. We go into more detail on this in our training.
One final comment - you really don't want to start out with too much money. I know that sounds counter intuitive, but it's the truth.
Keep your eye out for another blog post here and I'll explain why you don't want to start out with too much money.
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