Freight Bond
What is freight bond? A freight bond is a $75,000 financial guarantee a freight broker must maintain to cover unpaid carrier invoices in the event of broker insolvency.
Full definition
FMCSA requires freight brokers to maintain either a $75K surety bond (BMC-84) or a trust fund (BMC-85). Carriers that go unpaid by an insolvent broker can file claims against this guarantee.
In practice, $75K is far less than typical aggregate broker debt — claims often pay pennies on the dollar after multiple carriers file. Non-recourse factoring buys real protection, but the bond itself is thin coverage.
The bond is a baseline FMCSA test, not a true credit-quality signal. Use factor-credit lists, broker payment history, and broker tenure to actually evaluate broker risk.