Surety Guy,

I feel as though you are incorrect in the difference between bonds and trust funds. You state that a question about whether or not people would feel more comfortable with a large bonding company rather then putting up their own working capital. I feel as though people would feel comfortable knowing that the company they go with is going to do the right thing when it comes to claims. Having put up your own working capital would make that company more enclined to pay for the freight hauled then not. If you go with a large bonding company sure you are guaranteed the $10,000.00 surety bond but what happens when you have to pay out the whole $10,000.00 for claims filed, they then have to come up with the whole amount to pay it back to you. With a Trust Fund at least with making monthly payments they have money in the Trust fund and if we need to pay out the whole amount they only need to come up with what is outstanding. We are also choosey about who we give Trust Funds to in any business you have to know who your customers are. We don't make them jump through hoops and give up every thing personal and business about themselves. You are asking for financials from the business and personal. When trying to get bonded you ask for every thing short of their first born. The fact that with a Trust Fund when the companies are making monthly payments at least we know that they are still around and doing business. With a Trust Fund you are not just a file number you are a business and we know who you are we treat our customers on a personal level. The ability to insure yourself in any way makes you a better business owner all together because you learn the you don't want to have to spend that money because it is yours. Therefore the claim level is lower. The question that I would like to ask is why would you tell someone with good or bad credit to go and get a BMC-85 for the first year or so and then get a surety bond? If I was someone that you told that to I would never come back to talk to you again because in one year I would be fully funded at $10,000.00 and would be doing business and have nothing to worry about. Then to have to come to you and give you all my personal and business financials would not be worth my time. So the answer is trust the only way to go. New or Old companies are making the right decision to control their own company buy putting themselves in charge of their money and the way that it is handled.