What is the broker bond and how do I file a claim against it?

Federal law requires freight brokers to maintain a $75,000 surety bond (BMC-84) or trust fund (BMC-85). If a broker fails to pay a carrier for freight properly hauled, the carrier can file a claim against the bond or trust fund. The process typically involves providing documentation of the load (rate confirmation, BOL, signed POD, invoice) to the surety company that issued the bond. Bond claims must generally be filed within a limited timeframe after the invoice comes due. The bond is not unlimited — if multiple carriers file claims simultaneously and the total exceeds $75,000, each claim receives a prorated share. FMCSA shows the bond status and the surety company name, which you need to file a claim.

What does a broker credit check show?

A broker credit report from services like Carrier 411, Ansonia, or D&B typically shows the broker's average days-to-pay based on carrier-reported invoice data, the percentage of invoices paid late, the number of reported disputes, and sometimes the total volume of carrier invoices processed. A broker paying at an average of 25 to 30 days on net 30 terms is performing well. A broker at 50 to 60 days on net 30 terms is a cash flow concern. A broker with elevated dispute rates — even if ultimately paying — generates collection headaches. Credit checks cost a small fee per report but are significantly cheaper than chasing a delinquent invoice.

Can a broker legally restrict me from using a factoring company?

Generally no — most factoring assignment restrictions in rate confirmations are legally unenforceable because federal law protects the right of carriers to assign freight invoices. The Notice of Assignment sent by your factoring company to the broker is a legal mechanism for redirecting payment. However, some brokers include anti-assignment language, and a few will refuse to work with carriers who factor. If a rate confirmation includes factoring restrictions, notify your factor before hauling and let them handle the assignment process. Do not agree verbally to waive your factoring rights to get the load accepted.

What should I do if a broker does not pay after I have verified their authority?

Start with a written demand: send a formal invoice with the complete load documentation (rate confirmation, signed BOL, signed POD) via email and request payment by a specific date. If the broker does not respond or pays partially, escalate to a formal written demand letter citing the specific invoice and amount owed. If payment is still not made, file a claim against the broker's surety bond with the bonding company. You can also file a complaint with FMCSA, which tracks broker payment complaints and can affect the broker's authority status. Small claims court or a transportation attorney is the next step for larger unpaid amounts. Keep all documentation — every email, text, and call record — because you will need it for any formal process.

Guide

How to vet a freight broker before accepting a load

Most freight brokers pay on time and operate legitimately. A small percentage do not — and the ones who do not tend to leave carriers chasing invoices for months. A five-minute check before accepting a load from an unfamiliar broker is far less painful than a 90-day collection effort after delivery.

Why vetting matters more than it used to

Freight brokerage has lower barriers to entry than carrier authority. A new brokerage can obtain authority and start tendering loads within weeks, with limited industry track record visible on the surface. Load boards list thousands of active brokers, and many carriers work with dozens of different brokers per year — far too many to know personally. The vetting process described here takes a few minutes per broker and catches the clearest red flags before they become collection problems.

FMCSA authority check

Start at the source. The FMCSA SAFER system at safer.fmcsa.dot.gov allows anyone to search for a broker by MC number, company name, or USDOT number. The key data points:

Authority status: Must show Active. Revoked, Inactive, or Pending means the broker cannot legally arrange freight.
Broker authority type: Confirm they hold property broker authority, not just motor carrier authority.
Bond/trust status: Must show the $75,000 BMC-84 or BMC-85 as active, with an identified surety company.
Insurance filings: Active insurance on file is another indicator of a functioning operation.

An MC number that shows up as revoked or recently reinstated after a lapse deserves additional scrutiny before hauling.

Broker bond and trust fund

The $75,000 broker bond is a federally required financial safety net for carriers. If a broker fails to pay for properly delivered freight, the carrier can file a claim against the bond. Key things to know:

The bond covers unpaid freight bills — it does not cover cargo claims or other disputes.
The bonding company name appears in the FMCSA record — note it so you know where to file if needed.
Bond claims typically require documentation: rate confirmation, BOL, signed POD, invoice, and proof of demand for payment.
The $75,000 limit is shared across all claimants if multiple carriers file simultaneously — large brokerages in financial distress can exhaust the bond quickly.

A broker operating with a lapsed or missing bond is a significant warning sign. FMCSA is supposed to revoke broker authority when the bond lapses, but there can be a lag — always verify the bond status directly.

Credit check services for brokers

Beyond legal authority, payment behavior is what matters day to day. Carrier-specific credit check services aggregate payment data from carriers who have hauled for a broker and reported their invoice outcomes.

What to look for

Average days to pay: Industry standard is net 30. A broker averaging 45 to 60 days on net 30 terms is creating cash flow problems for carriers who do not factor.
Dispute rate: A high percentage of invoices that result in disputes — even if ultimately resolved — means collection friction and staff time on every invoice.
Recent trend: A broker who historically paid well but has moved to slower payment in the last 60 to 90 days may be experiencing financial stress.
Carrier complaints: Specific reports of non-payment, short-payment, or refusal to pay accessorials are the clearest warning sign.

Available credit services

Carrier 411, Ansonia Credit Data, and DAT One all offer broker credit data. Some load boards include payment ratings directly in the broker listing. The cost of a credit check — typically a few dollars per report for subscribers — is a fraction of the time spent collecting a disputed invoice.

Reading the rate confirmation for payment terms

The rate confirmation is a contract, and the payment section matters as much as the rate. Before dispatch:

Payment timeline: Net 30 from paperwork receipt is standard. Net 45 or longer is common with large shippers but compresses carrier cash flow.
QuickPay option: Many brokers offer QuickPay (same-day or 2–3 day payment) for a fee — typically 1.5% to 3% of the invoice. If you factor, your factor handles this.
Factoring assignment language: Look for any clause that restricts assignment of the invoice. Most are unenforceable, but they signal a broker who may resist the factoring process.
Cargo claim window: Some rate confirmations impose very short windows for filing cargo claims — 24 or 48 hours — that are shorter than the Carmack Amendment standard. Note these before dispatch.
Required documentation: What paperwork does the rate confirmation require for payment — original BOL, signed POD, invoice, specific formats?

Load board reviews and community sources

Carrier communities maintain collective knowledge about broker payment behavior that no credit service captures perfectly. Sources worth checking for unfamiliar brokers:

DAT and Truckstop.com broker ratings: Carrier-submitted reviews that rate communication, payment speed, and professionalism.
Carrier 411 broker database: Payment reports and dispute records aggregated from carrier submissions.
Trucking forums and Facebook groups: Direct carrier experiences — search the broker name before accepting the first load.

One bad review is not necessarily a disqualifier — disputes happen in every operation. A pattern of bad reviews, or multiple recent reports of non-payment, is a different matter entirely.

Red flags that warrant walking away

Authority status anything other than Active
Bond lapsed or missing
No credit history available and broker is pushing for immediate dispatch
Multiple recent non-payment reports on Carrier 411 or load board reviews
Rate confirmation with very short cargo claim windows, factoring restrictions, or unusual mandatory arbitration clauses
Broker cannot or will not answer questions about their payment process or bond status
Load offered well above market rate for the lane with pressure to accept immediately

Common questions about broker vetting

What is the broker bond and how do I file a claim?: Federal law requires brokers to hold a $75,000 surety bond (BMC-84) or trust fund (BMC-85). If a broker fails to pay for freight properly hauled, you can file a claim against the bond with the surety company named in the FMCSA record. Claims require documentation: rate confirmation, BOL, POD, invoice, and proof of demand. The $75,000 is shared across all claimants if multiple carriers file — larger brokerage failures can exhaust the bond before all carriers are paid.
What does a broker credit check show?: Carrier credit check services show the broker's average days to pay (based on carrier-reported invoice data), percentage of invoices paid late, number and rate of disputes, and recent payment trends. A broker paying at 25 to 30 days on net 30 terms is performing normally. A broker at 50 to 60 days on net 30 is a cash flow concern. Multiple dispute records indicate collection friction even when invoices are eventually paid.
Can a broker restrict me from factoring?: Generally no — federal law protects the right of carriers to assign freight invoices, and most factoring restriction clauses in rate confirmations are legally unenforceable. Your factoring company handles the Notice of Assignment, which legally directs payment from the broker to the factor. Some brokers resist factoring as a matter of practice. If you factor and a rate confirmation includes anti-assignment language, notify your factor before hauling so they can address it properly.
What do I do if a vetted broker still does not pay?: Start with written demand: invoice with full documentation (rate confirmation, BOL, signed POD) via email with a specific payment deadline. If unpaid, escalate to a formal demand letter. Then file a claim with the surety company named in the FMCSA bond record. File a complaint with FMCSA. Consider small claims court or a transportation collections attorney for significant amounts. Keep all records — every email, text, and call log — because the bond claim and any legal process require documentation.