Is a letter of credit from our bank enough to start a freight broker business?
By Nina Kaufman •
Opinions expressed by Entrepreneur contributors are their own.
Should our banker fill out the necessary form with the letter of credit, or are we required to have a bondsperson handle it after we receive the letter of credit?
It's not clear what form you�re talking about, as this is a business that requires a number of different forms.
There's a lot that goes into starting a freight broker business, not the least of which is ensuring that you have a substantial enough line of credit to be able to pay your carriers even before you're paid by the shippers.
Make sure you surround yourself with a solid team of advisors--for insurance, record-keeping (the Code of Federal Regulations specifies the records you need to maintain), legal issues and, especially, banking. They should be able to help you create a smooth system for operations.
