More bond/trust fund questions

[julieanne]

I have worked as a shipper for the last 15 years, beginning in the 1st 1/4 of 2007, I will be moving to the other end of the phone line to operate as a freight broker. I am setting up this portion of our new company on my own - I've done lots of research on the FMCSA website, and have located a process agent. I now have to tackle this bond vs. trust fund decision. Here's the details, we are a new company, we do have a financial statement, budget and cash flow reports established and have been approved for our operating line of credit. We do not want to post the $10,000 up front if we don't have to, obviously that ties up alot of working capital. And as I've noticed on the other postings here, it can be difficult for a new company to obtain a bond. So, I am thinking the Trust Fund Agreement is the best route for us. I printed the Trust Fund Agreement form off of the FMCSA website, the BMC-85 (I did not see where you could even print the BMC-84 application from that site???) Do you have to supply financial information in the BMC 85 filing? Does JW Surety Bonds file this form for us? Does our company still have to go through an approval process with a trust fund?

[Admin]

Julieanne,

Welcome to the surety bond forums. The BMC-85 is a trust fund in which you build up to the $10,000 amount within a year's time. It is a good option, if you do not qualify for the bond.

However, new companies can qualify for the bond. I suggest you apply for an ICC Bond to see if you qualify. If approved, our agency will electronically file your bond for you.