Looking for some info on becoming a broker or dispatcher from home!

They may file suit and then get an injunction to prevent implementation of the law until the lawsuit is heard in court. We have way too many regulations as it is. Let's just get rid of the performance bond and have everyone do what every other industry does and that is check credit before doing business with companies. We don't need the nanny government to come in and protect us.

 

Thats fine but how many new start ups have a good credit history or a credit history?

 

If you are paying that much for a $10,000 bond, you are paying too much. Most performance bonds charge 10%. You may be able to do something through your bank for less of a fee. As I recall you can put up assets equal to the bond and get a letter of credit from your bank. The fee should only be a few hundred dollars. I don't remember all the particulars off hand, but might check with them to see if it is something that might work for you.

 

It takes time to build a credit history and a good reputation. Often, new companies rely on the good credit of the owners. Starting out you may want to do business with smaller carriers or independents for the first year so that you can build both your reputation and credit. Many carriers won't do business with new brokers. I want a broker to be in business for at least a year before I do business with them. The main reason is that I want to see a credit and business history. There are some carriers who won't even check to see if a broker has authority, much less if their bond is valid or has claims. The first year is always a challenge with any new business.

 

Thats true and I do work with smaller companies, but the brokerage I am trying to get off ground is owned by 2 O/O who have been in the trucking business for over 30 years. While they have a good reputation for their loads the brokerage is new and the authority has only been active a few weeks.

 

You need to have the 10000 upfront and in a secure account which you can not touch. This is if you decide not to pay the trucking company. The gov't then takes that 10,000 to pay your debt. The problem is brokers were exceeding the 10,000$ debt. The gov't bumped it to $75,000. There are companies that will put the 75000$ up for you but it will cost you twice that in premiums and interest. I have had a trucking company for a long time. And I have been a broker for just under 10 yrs now. The new 75,000$ bond is going to make it very hard for individuals to become brokers. Not too many small companies can put up 75,000$ and never touch it. Big business at it's best.

 

Sign on with a larger brokerage. We've been with one for 20 years and they haven't eaten us yet. The problem is there are too many scammers out there. You'll either need to merge with others and learn to play nice or find something else to do if you don't want to become an agent for a large brokerage house. I don't usually agree with the Government, but something had to be done here to curb the fraud.

 

www.coverloads.com is a wonderful program to teach you to be an independent dispatcher and a freight agent. you can call them and ask all the questions you need too.

 

I think they charge $500 or more for an weekly class. They are in my area if it is the same company. Biggest problem is they will give you all the stuff to say and do but forget to train you on some of the biggest factors of that business that would have you running for the hills.

Another thread on here talking about this. The OP knows some of the things to say but based on several little things it is clear they don't understand the numbers or have a realistic budget. I wouldn't be surprised if the OP from that thread came from this or a similar school. When building a business plan you want to have some knowledge of the business. And getting that information from a company that is selling you something to help start that business.

 

I have issues with this concept of an 'independent dispatcher' thing that is coming up more often these days. To me it sounds more like someone came up with a way of getting around having to get a broker's authority and do things properly. There is no way I would give someone I don't know permission to use MY authority to book a load, and anything other than that falls under the jurisdiction of a broker or a trucking company.