Today, FMCSA rulings dictate that general freight brokers must maintain a surety bond or trust fund agreement in the amount of $10,000 to comply with its financial security requirements. Brokers of household goods must maintain $25,000. But as of October 1, 2013, all brokers will need to obtain and file with FMCSA a surety bond or trust fund agreement in the amount of $75,000 to remain in compliance.
This is creating some concern among Factors who are worried that some of the freight brokers in their portfolio may not qualify for the increased bond and will therefore default on their debt. This would cause many factors to suffer losses.
FactorsNetwork has created the Bond Monitoring tool to help Factors manage this risk. It is available complimentary to participants in our CreditExchange service. If you share your receivables information on our CreditExchange then our computer system knows what Freight Brokers owe you money. Our Bond Monitoring service will check the FMCSA site regularly and see which of those brokers that owe you money have the increased bond amount and which don't.
As the government updates their publicly available records we will update your reports and give you the freshest information possible so you can manage your risk.