Finding a broker?

Factor everything until you establish relationships with brokers on both ends of route. The factor company will do all the research on the broker/shipper. No need to do credit checks. People still get burned relying on credit checks.

 

Factor everything? Not good advice in my book. O/O's need every dime out of every settlement. There's some brokers that have been around for a long time ie: CHRobinson, JBHunt, Landstar, MCT and others. Talk to other O/O's. What are you pulling and what part of the country. That has a great deal to do with what brokers you might use on a regional basis.

 

You're leased on with somebody now Ptrblt?

 

Agreed, but he is new, he's just starting out. He doesn't need to be trying to figure out who will pay and who won't and when they'll pay.

There are some good factoring companies out there. They aren't all rip offs. He'd be smart to go that route for the first month, or so, IMO.

On the other hand, one or two slow paying loads when you first start out could really hurt. Right? I just can't imagine starting off worried about getting paid.

You suggested he haul something for CHR or JB so he can be assured of getting paid? How much of a percentage do think hauling for them will cost him? Lot more than 3%, I'd wager.

 

As a rule of thumb, be wary of any broker who has an MC# that begins with 6 or 7. They're too new and haven't proven themselves.

You can also check their bond history at the L & I website:

http://li-public.fmcsa.dot.gov/LIVIEW/pkg_carrquery.prc_carrlist

If you see a pattern of address changes and bond cancellations/renewals, be suspicious.

Also, I like to check the mailing address and physical address on Google Earth. Is it a mail forwarding service or an actual office building where business is conducted?

If a broker agent calls interested in your truck, make sure he is actually an agent for that broker. Call the main office and ask about him. make sure his address and contact info matches what the main office has. this was a popular scam awhile back.