
<!DOCTYPE html>
<html lang="en">
  <head> 
    <meta charset="utf-8">
    <title>Freight Broker Trust (BMC-85) | Light House Surety</title>
    <meta name="viewport" content="width=device-width, initial-scale=1.0, maximum-scale=1, user-scalable=no">
    <meta name="description" content="">
    <meta name="author" content="">
<?php include 'global_script.php';?>
</head>
<body>
<?php include 'global_head.php';?>
  <!-- placeholder slider -->  
  <section class="wrapper100percent">     
  <div class="flexslider">
  <div class="hidden-xs hidden-sm" style="height:35px;">
  </div>
  </div>
  </section>
  <!-- placeholder slider --> 
  
    <div class="mainheadlinewrapperpage">
    <div class="container">
      <div class="row">
        <div class="col-sm-8 col-xs-6">
          <div class="mainheadlinepage">
            <h1>Freight Broker Trust (BMC-85)</h1>
            <p>How BMC-85's work.</p>
          </div>
	      </div>
        <div class="col-sm-4 col-xs-6 text-right">
        <ol class="breadcrumb">
          <li><a href="/">Home</a></li>
          <li><a href="/surety-bonds">Surety Bonds</a></li>
          <li class="active">Freight Broker Trust (BMC-85)</li>
        </ol>
        </div>
      </div>
    </div>
  </div>
  
  <!-- one section -->  
  <section class="wrapper100percent section1">
    <div class="sectionwrapper"></div> 
      <div class="container">
        <div class="row">
					<div class="col-md-4 text-center float-right">
						<h3><strong>Get Your Free Quote Now!</strong></h3> <br>
						<p><strong>Apply online and get a quote in minutes.</strong><br>
						<div class="buttoncontact"><a href="/freight-broker-bond-application" title="GET A FREE QUOTE" target="_parent"><input  type="submit"  name="button" id="button" value="GET A FREE QUOTE!"/></a>
						</div>
          </div>
          <div class="col-md-7">
			<p>Licensed freight brokers are required to fulfill specific regulations to operate a legal business. One of these requirements involves posting a bond or a trust to ensure compliance with federal laws. Although freight brokers have the option of a surety bond or a freight broker trust, there are distinct differences between the two that influence which choice makes the most business sense. The BMC-85 trust is the less common option for licensed freight brokers, based on how it works and the cost involved in securing it.</p>
            <h3>What is a BMC-85?</h3>
            <br>
            <p>A BMC-85 is a $75,000 trust secured by a freight broker in order to meet federal licensing requirements. Similar to a BMC-84 surety bond, a BMC-85 trust provides protection to the public against fraudulent or illegal business practices on the part of a freight broker. The trust serves as a pool of funds which can be used to pay out claims against the broker, up to the full trust amount. Unlike a <a href="/freight-broker-bond"><u>BMC-84 surety bond</u></a>, however, a BMC-85 trust requires the entire $75,000 to be funded up front.</p>
			<p>Putting a BMC-85 trust in place means a freight broker provides collateral to a bank, trust, or other custodian to meet the $75,000 requirement. This may involve cash or other accessible assets that the freight broker owns. The trust manages the BMC-85 account over time for a fee, and claims made against a freight broker are paid from the balance of the trust.</p>
			
			<h3>How Much Does a BMC-85 Cost?</h3>
            <br>
            <p>Covering the cost of the bond or trust requirement as a licensed freight broker can be a significant expense for the business, particularly when the BMC-85 is selected. Posting a BMC-85 trust requires full payment of the $75,000 to fund the account, plus any trust administration fees charged by the custodian. These additional fees can range from a few hundred to a few thousand each year.</p>
            <p>A BMC-85 trust costs more than a BMC-84 surety bond because of the upfront and annual expenses required to maintain the trust account. With a freight broker bond, you only pay a small percentage of the bond requirement, typically between 1 and 10%. The surety company providing the bond relies on your credit history and business details to determine the cost each year. For freight brokers with bad credit, or those who cannot get a BMC-84 bond based on other factors, a BMC-85 trust may be the right solution to meet this licensing requirement.</p>
			
			<h3>How to Get a BMC-85</h3>
            <br>
            <p>Obtaining a BMC-85 trust involves several steps, starting with finding the funds to fulfill the trust minimum. Many freight brokers, especially those who are just getting started in the business, may not have $75,000 of cash or other liquid assets readily available to fund the trust. If that’s the case, a BMC-84 bond is likely a more realistic option.</p>
            <p>After the trust funds are identified, a freight broker will need to select a trust company to help manage and maintain the BMC-85. Some banks and credit unions offer trust services, as do trust companies familiar with freight broker regulations. Selecting the right trust custodian is essential, not only from a fee perspective but also in terms of financial strength. A trust company is tasked with keeping the funds in a BMC-85 account safe and accessible should a legitimate claim take place. If a trust company is on shaky ground financially, your BMC-85 funds may not be available when you need them most.</p>
			<p>Once a trust custodian is selected, the BMC-85 is established and funded. The details of the trust are provided to federal regulators, so they are aware you are in compliance with licensing rules as a freight broker.</p>
            <p>A BMC-85 trust is an option for brokers who either do not want or cannot obtain a BMC-84 bond. However, it is necessary to evaluate the total cost of a BMC-85 trust, including the up-front funding needed to establish the account, along with the administrative fees charged each year. Freight brokers who have the opportunity to secure a BMC-84 bond may be better served by going this route, as the expense is far lower than a BMC-85 trust.</p>
			
		  </div>

        </div>
      </div>
  </section>

	<?php include 'global_footer.php';?>