This article examines why carrier packets for broker setups are critical, what they entail, and the many ways that TrueNorth ensures your cash flow remains efficient, effortless, and most importantly, continuous.
Why are carrier packets for broker setups critical?
Brokers require that you get setup and complete a carrier packet before you can haul your first load with them. It allows you as a motor carrier to get paid for those loads. The setup process legitimizes the broker-carrier relationship by defining and documenting the terms and conditions of each transaction, including the rights, responsibilities, and limitations. All parties - the broker, the carrier, and the factor - agree to these terms and conditions, as evidenced by signing the broker-carrier agreement. This process mitigates the risk of bad business practices, as carriers and brokers want to ensure they are doing business with trusted partners. Outside of the paperwork, the broker setup is the foundation of a strong relationship between the parties.
What does the carrier packet and broker setup entail?
Getting set up with a broker is a process that entails an exchange of information between the broker, the carrier, and the factoring company. Typically, the broker provides the carrier packet - also called a broker packet - to facilitate this exchange through a collection of documents and information. The documents serve many purposes, including verifying your carrier authority and broker status.
The motor carrier or the factoring company then returns the carrier packet to the broker with all necessary paperwork
How do I fill out a carrier packet?
When the broker provides the carrier packet to the carrier, it provides and requests information essential to both the carrier and the broker. Let's take a look at the specifics of what it includes:
The broker provides to the carrier:
- The broker-carrier agreement, setting the terms and conditions of hauling, such as payment, invoicing, and insurance requirements. The broker sends this to the carrier for the carrier to fill in, sign, and return.
- A copy of the broker surety bonds, proving they have $75,000 collateral to secure.
The broker requests of the carrier:
- The completed broker-carrier agreement (mentioned above)
- A copy of the completed W-9 Form, ensuring taxable income is reported correctly at the end of the year.
- A copy of your Certificate of Insurance
- Notice of Assignment (NOA), confirming your factoring company's information
- Invoicing procedures, guiding how you as a carrier will get paid.
- A copy of your Letter of Authority, containing your motor carrier number assigned by the FMCSA and proving you are legally allowed to transport property. Required by some brokers, not all.
How does TrueNorth support carriers in their broker partnerships?
TrueNorth provides a Setups Cheatsheet to alleviate some of the burden and make it easier to complete broker setups, keeping your status with brokers active and current.
Carolyn, Broker Relationship Manager at TrueNorth, shares, "You don't know how to navigate it until you try it. We're here to help you get on your feet with that magic spark."
TrueNorth specifically supports your broker setups in the following ways:
Setups Cheatsheet to make setups a breeze
TrueNorth provides Setup Cheatsheets upon request to help you complete setups more easily. Message support@truenorth.com to learn more.
Identify your best business opportunities given the age of your authority
It's important to note that timing for initial broker setups may vary. For example, most brokerages do not allow carriers to get setup until your authority has aged at least 30 days. Some brokerages do not allow carrier setups until your authority has aged 90 days. TrueNorth has established strong relationships with various brokers, including those who work with younger authorities, to meet your business needs. Identify these brokers and begin hauling immediately.
Make it easier to update your information with brokers
You must provide each broker with an updated W-9 and insurance documentation each year. Depending on the number of brokers you're set up with, this can be another headache in the hauling process! Provide TrueNorth with your new documentation, and we will update your Setups Cheatsheet to make it easier to update your information with brokers and keep your status active and current.
Prepare you to haul so you can earn more!
TrueNorth's Help Center resources guide you so that you can understand the necessary steps of getting on your feet and managing your business.
There are many outside resources to take advantage of, whether through reading articles on the TrueNorth blog, such as The Challenges and Benefits of Working with Brokers or How to Get the Best Freight Rates, or connecting with other carriers in a similar situation via online forums. The more you can learn now will set you up for future success when you start hauling.
In addition, despite some brokers choosing not to work with new authorities until three or even six months of age, as you find loads you want to haul, we cannot stress enough the importance of building relationships from day one. Always call to introduce yourself and inquire about the load and stay connected. The time to start is now.
Other relevant articles:
How to Protect Yourself from Bad Freight Brokers
The Challenges and Benefits of Working with Brokers
About TrueNorth
TrueNorth pioneers a new era for truckers, new carriers, and owner-operators. Born from a legacy of trucking roots, it transforms the industry's landscape with a cutting-edge operating system. By replacing outdated processes with a unified mobile app, TrueNorth empowers truckers with superpowers – a dispatcher, CRM, financial dashboard, and real-time market insights. Bridging the gap between traditional fleets and tech companies, TrueNorth champions truckers' profitability, offering tools, and support for streamlined operations. In a world where autonomy looms, TrueNorth remains the ally ensuring profits and efficiency for the heroes steering the wheels of commerce. Get started with TrueNorth today, and see how a trucker-first tech platform can revolutionize your operations.