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Is a letter of credit from our bank enough to start a freight broker business?

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?
Nina Kaufman answered September 12, 2008
URL: http://www.entrepreneur.com/answer/221632

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.

Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.