Question:
Any advice on getting into Brokering. I currently haul food grade tanker and am gone 2-4 days at the most. Thought of getting into brokering for some extra $$.
Jim

Answer:
It's not quite as easy as it sounds. One thing is you'll need to have lots of money or work for some one that does. Alot of Owners want cash advances and won't haul for you if it can't be done. They also want Quick Pay. A guaranteed 1- 3 day pay on bills. That requires real good credit and a fast factoring company. Excellent credit is a big must. Companies will run you or your company prior to doing business and accepting your loads.
A nother must is to have your own customers, shippers etc. Getting freight off load boards and double brokering them is a major head ache. Some of the loads are triple brokered. Alot of money is gone before you get it. Also instead of you dealing with the customer/shipper it has to go down the chain to the person that does. Load boards can also have some cheap freight. Thats why it hasn't moved and is placed on there.
Like alot of things it would be best to work for someone and buld your clientele and knowledge before you spend the money on licenses, authority and the very costly insurance. Most brokers carry cargo and liability. There are different minimums for diff. freight. A load of paper will be alot less than a load of seafood.
Here's a good place for info,
www.dotauthority.com

Answer:
What exactly did you have in mind? As in, to what extent did you want to do this sort of thing? It's a full-time job and not as easy as it seems.. especially when things go wrong. Double-brokering off of load boards will be a real mess if problems arise.. remember that you're the middle man and it's beyond your control.
If you have some customers / friends you could help, that might be a better approach, done on a smaller scale. If you're trying to help out some aquantances move their freight or keeping their trucks moving, that's different, and you might be able to act as an agent rather than a broker.

Answer:
Try THIS web site.
Google Results for Freight Broker training.
Answer:
If you HAVE to use a factoring company you are not ready yet.
In my way of seeing thins. They should only be used when you are about to go broke.202 N Main Street
Summerfield Il 62289
TRUCK PARKING AVAILABLE!

Answer:

Are you sure about that DT. Right now we have 15 loads runing. Carriers can ask for 40% in advance or Quick pay, 1-3 day pament for loads. The loads average $4000.. That is 60k in loads or at 40% it's 24k in one week. I dont know of many people that have that kind of cash to put out weekly while waiting for the shippers to pay the BOL's. Factoring companies, one actually, buy the BOL's and charge 3%. The carrier is charged the 3%. The broker has to have the credit and the loads have to be acceptable not much else required. No cost to the broker. You have to provide these services if you want to be competitive.
If you think about it the carrier isn't ready or is practicing bad business management by needing advances and quickpay. Besides all the other cost they are adding another 3% cost to each load. Better said, they are throwing 3% of each load away. They do it all the time.
No advances and no quick pay equals no factoring and no 3% charge to the carrier.
(Some things are funny. Running a Google search and picking a name out of the results then recomending them. Kind of lame. You should know what and who your talking about from either experience or recomendations from those that have it. How some of you manage to know eveything about everything cracks me up.)

Answer:

They ARE "Truck Drivers",have you forgotten?
Answer:


And we know they got their schitt together. Whoa is me. Yup, put the brakes on the trucking crapola and haven't looked back.


Answer:
3% for what a 14 day wait. What is that like 78% in a year compounded? If you get real luck it will be only 3% for 30 days with a small daily charge. I would rather use a credit card.lol
If you have to borrow to pay. You are not ready to be in business. You do not have the funds to back the company.
Factoring companies are for those that are out of credit, out of money and close to getting buy.
Why not borrow from you credit union?202 N Main Street
Summerfield Il 62289
TRUCK PARKING AVAILABLE!

Answer:
You just dont make much sense Daytrader. Your saying a Broker (this case) should use their own money, a credit card or Credit Union to borrow money to pay the truck. It seems more than a little crazy to borrow money when you can get it for without cost.
Maybe your just not quite grasping it. There is a one time fee to get the money. The broker does not pay it. The trucking company is charged the fee. The broker is able without cost to pay the trucking company quickly.
I had to make sure of some figures before I posted this. Here are the cost to the broker. Why it makes good business sense.
One time transaction fee, $15.50
Processing fee per transaction, $35.00
Broker cost $50.50
3% charged to Truck avg. $4000 load $120.00
Broker profit to pay you early $69.50
Now please explain why you would borrow money or use your own?

Answer:
Stuffs, Brokers factor their bills as well. The rate is huge for the small time you are borrowing the money.Like 3% a month. Not 3% a year. That adds up. Loan shark rates.
I guess I could see a truck owner factoring their bills, if they didn't have the funds to operate.
One thing to look out for. If you factor that bill. The factoring company better be able to get paid. If not, you have to pay them back.
I would much rather use money in the bank, a bank line of credit, or anything else but a factoring company.202 N Main Street
Summerfield Il 62289
TRUCK PARKING AVAILABLE!