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