Bmc 85

[ziggyboo84]

Hi

I just have some question regarding the trust fund since I hear everyone on this forum saying that it is much easier to obtain than the bond for new business owner.

My question would be when obtaining the bond does the 10K have to be paid within a period of 12 months or can it be longer. I know it depends on waht kind of a contract you close with the financial institution that is giving you the fund, but cinsidering that I would be a new business owner with just going into the busness 10K distributed over 12 months make a nice payment of $800+. I believe i ahve read somwhere on this forum that you will have to have the trust fund topped by the 12th month.

Now i asume you can cancle the bond after having it more than 1 year and your money will e returned to you.

If anyone that has previosuley obtained the BMC 85 can fill em n on more detail on what the financial institution was expecting form you before giving you the fund. Any down payment, monthly payment are there any interest rates involved, cancelation fees and so on...

Thank you for your time everyone!!!

Eddie

[Admin]

I can not speak to the specifics of the trust fund, as our agency does not offer the BMC-85.

However, we recently came across a surety that is willing to write the ICC Bond for new companies and or ownership with some credit issues. You can apply at:ICC Bond Application

[ziggyboo84]

Originally Posted by Admin

I can not speak to the specifics of the trust fund, as our agency does not offer the BMC-85.

However, we recently came across a surety that is willing to write the ICC Bond for new companies and or ownership with some credit issues. You can apply at:ICC Bond Application

Now I assume since this is an ICC "bond" that i will not have to fund the entire 10K, further will this be a 0% colateral bond or ae there going to be some major charges, or if you could jsut explain how this is different fomr the surety bond and the trust fund i am a little thrown off with these differet options i guess i am not the first one going through this nor the last!!! thank you 4 ur time.

[Admin]

It would be a surety bond w/ no collateral required. You are correct, in that the annual bond premium will be a percentage of the total bond amount. The bonding company is acceptable for the ICC. You can apply using the link I supplied above.

[ziggyboo84]

so let me get some of this paperwork in order now just to make sure i am getting all my ducks in a row. freight broker is required to have MC# proof of 10K bond and a BOC-3 but before he can obtain the boc first need to show a proof of the bond. So i assume after obtaining the MC# I can go ahead and apl for the bond before applying for the BOC-3 since the money is non refundable. Or should I jsut apply for the bod as the 1st thing on the "list to do for obtaining freight brokage authority"? thank you again

[Admin]

Providing the MC# is not necessary for new businesses. However, it couldn't hurt. If it is for a new business you can apply with or without the MC#. The MC# is required for existing companies.

[don jipping]

in my opinion the best order to go is this
1) get preapproved for bmc-85 trust or bmc-84 broker bond
2) apply for MC# ($300 non-refundable fee with FMCSA)
3) get bmc-85 trust or bmc-84 bond filed with FMCSA
4) have boc-3 process agent filed

actually the boc-3 may be filed at anytime once you have MC#, the key is not to spend any $ until you are certain you are approved for the trust or bond.

Don't buy the cart until you have the mule to pull it!!