How much money does it take to become a broker?

Most brokerages (and businesses) fail because they are under capitalized. The start up money is probably the least of your worries, a fax machine, a bond/trust, a computer and a salesman's smile will get you started. Will you have the money under your mattress to pay carriers while you wait 45-60 days for your customers to pay you?

 

I would say 80k is a safe spot right there.

 

https://www.youtube.com/watch?v=l91ISfcuzDw

 

Hi rolling coal. I just asked you a question on another thread.

 

You will need authority and a $75,000 bond to become a broker. Authority costs $300. You will need assets or cash to cover the bond with most companies. You may be able to get a letter of credit that will cover the bond and comply with the broker requirements. It usually costs about 10% to pay for the bond. You also need either a line of credit, a factor or cash where you can finance your receivables for at least 3-6 months. The amount will depend on how much business you plan on selling. You will also need a phone, fax and computer.

 

Its not just about the money, lets say you do get bonded and all that. You will be a new broker, factoring companies wont really approve you for their carriers, you will have to wait to get paid by ur clients while in the meantime you have to pay carriers. Also, instead of going after clients youll spend half your time maintaining the business with all the backend paperwork. If you become an agent for someone, all your time will be focused on making money, they handle the billing and all the particulars. Its the way to go, IMO. I am a broker agent, write me a private message with your contact info if you want, and we can talk more. Thanks.