What documents do brokers ask for?

Proof of Authority Letter from FMCSA
Proof of Cargo/Liability Insurance
W-9

MOST brokers will want to be added to your Insurance... most of the time, this involves a simple phone call to your agent with the infor on the broker... WE do it as a matter of course, even if they don't ask... saves time and some "back-n-forth" type delays... some may want your Factoring company info as well.

Good luck to ya, brother... made the mode myself and never looked back!

 

In addition to the items Horse Whisperer noted, you'll also occasionally be asked for:

1. A check voided out for your business checking if you want ACH / Direct Deposit
2. Industry references. Typically 3 customers you've hauled for. This one isn't as common, but be prepared in case they ask for it. If you don't have any yet just be honest with them since they'll pull your MC# and see that it's brand new. Some companies won't let you run until you have those references, and / or have a year of authority. Don't worry though, for the most part, neither of these two scenarios come up very often.

Oh and you may already know this, but many new carriers don't, and that's to formulate your rate quotes based on a trip-rate, not a per-mile rate. Yes, you can still use per-mile breakdown to help you formulate the total quote amount, but shippers, brokers, etc. will expect the quote to be, say, "$4200, broker pays lumpers and pallet exchange" and not "$2.45 per mile".

Welcome to the fast water.

 

Any new broker or shipper will want a copy of your MC authority, a filled out and signed W-9, and a certificate of insurance naming the broker or shipper as the certificate holder. This should be sent directly from your insurance company or agent. Some insurance companies will allow you to order them online rather than having to speak to a real person. You could scan in a certificate, W-9 and your authority for your records. All brokers will usually require you to also fax back a signed contract before they will do business with you.

 

Can the brokers use the information when you give them your bank account information in a bad way? or any of the information from your company in a bad way?

 

Anyone who has access to your information can misuse it. If you want to haul freight you will need to provide them certain information. Before giving them your information, you could request their information and check them out. It is a two way street. You should know whom you are doing business and how they handle their business. If you are not incorporated, you may want to either incorporate or file for a separate federal identification number for your business so that your social security number is not compromised. I would not give my banking information to anyone who doesn't really need it. A broker has no need for your banking information. Neither does a shipper. The only reason a broker or shipper would need your banking information is if they did direct deposit. You can always request a paper check, comcheck or similar method of payment.

 

I've never been asked for bank info. (I would not consider direct deposit with a broker, regardless.) I always factored my freight. The fees for this were well more than offset by the fuel discounts I got from the factor ($.10-.55/gallon).

Naming the broker as a certificate holder is very common. The insurance company I used had a great website where I could simply do that on my own - in seconds - and email or fax it with the ratecon moments late. Sure beats having to call the insurance company (not always possible) and then getting them to issue and fax the cert to the broker. See if your provider has a service where you can do this on your own. It is a very common request.

 

Factoring worked very well for me. (See my post above.) It's all about cash flow.