From Carrier Packet Templates to Broker Setups: What to Know

Aug 1

As an Owner-Operator at TrueNorth - whether you’re leased onto our authority or running under your own Motor Carrier - you are in total control of the freight you haul. You choose what, when, and with whom you haul. And with over 17,000 licensed brokers in the trucking industry, you have a myriad of freight opportunities at your hands to explore.

Organized, detailed, and timely paperwork is required to be approved to haul and subsequently get paid for each load. This paperwork is exchanged and finalized through the broker setup process, which can be burdensome and take time away from what you enjoy most - trucking.

The good news is that TrueNorth provides all the back-office support you need to get paid quickly and efficiently, including broker setups. 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 is the Carrier Packet in Broker Setups Critical?

You should always complete a setup for each broker with whom you work. A setup allows you as a motor carrier to haul for a broker and 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. Most factoring companies do not do broker setups for carriers, but TrueNorth will return the carrier packet on your behalf. Depending on the situation, there may need to be some back and forth if business conduct and expectations need discussion.

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:

Provides 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.
Provides a copy of the broker surety bonds, proving they have $75,000 collateral to secure.

The broker requests of the carrier:

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
A copy of your Letter of Authority, containing your motor carrier number assigned by the FMCSA and proves you are legally allowed to transport property
A copy of your CDL, proving your status to drive a commercial motor vehicle is valid and current.
Notice of Assignment (NOA), confirming TrueNorth is your factoring company
CSA score, giving the broker insight into your safety and compliance history.
Invoicing procedures, guiding how you as a carrier will get paid.

How does TrueNorth Support You Through Broker Partnerships?

TrueNorth provides back-office support to alleviate the burden of broker setups and to keep your status with brokers active and current. This hands-on and ongoing support differentiates us from other factoring companies and gives you back valuable time that you can spend on something else.

Carolyn, Broker Relationship Manager at TrueNorth, tells us that she often hears carriers say to her, “I needed you, and I didn’t know it.” She continues to share, “It’s a little bit like parenting. 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:

Immediate access to 85% of total brokered freight

When you partner with TrueNorth, we automatically get you set up with the leading brokerage firms around the country, which cover the majority of total brokered freight. Depending on your situation, including the age of your authority, this immediate access allows you to get hauling the same day.

Unlimited setups with other brokers

Outside the leading brokerage firms, TrueNorth will set you up with as many brokers as you wish. There is no limit to the number of broker setups we will do for you. All you need to do is reach out to us to inform us of new brokers, and we will get you set up as quickly as possible. Because we collect all of your important documents during the onboarding process - such as your W-9, Certificate of Insurance, and Letter of Authority - and securely store them, we can quickly pull them each time you request a setup. There is no need for you to send them to us again unless there has been a change.

Advise on your best business opportunities given the age of your authority

Speaking of age of 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. We will work with you based on your situation to advise on the requirements needed in order for your best opportunities to get hauling as quickly as possible.

Update your information with brokers both on an annual and ad hoc basis

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! TrueNorth is here to do that for you, and once you provide us with your updated documentation, we will update these forms with each broker to keep your status active and current.

Additionally, suppose you are joining TrueNorth, and have already gotten set up with brokers from a previous factoring company. In that case, we will update your factoring and accounting information to ensure that there are no interruptions in payment.

Get you access to setup platforms

We’ll set you up with carrier onboarding service providers such as Registry Monitoring Insurance Services (RMIS), DAT, and MyCarrierPacket to streamline your setup process going forward and get you hauling fasting. Why recreate the wheel when a solution already exists?

Prepare you to haul so you can earn more!

Whether you have questions, are seeking resources, or want to consult with our team, we’re here for you. There is so much to learn about operating as a motor carrier. TrueNorth’s back-office office support gently guides you so that you can understand the necessary steps of getting off your feet and managing your business.

There are many outside resources to take advantage of, whether through reading articles on our Owner-Operators Only 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.

How long does the setup take?

Time is always of the essence, and when you find a load you want to book, getting you setup quickly is our priority. The length of the setup varies based on the responsiveness of you as carrier and of the broker, as well as quality of the paperwork. Still, generally speaking, it typically takes 1-2 hours to complete the setup during regular business hours.

When should I request TrueNorth’s support for broker setup?

This depends on your unique situation and the brokers with whom you want to get setup. Typically, when you find a load you wish to haul, and call the broker to negotiate a rate, they will ask you for your motor carrier number. If you are not setup with them, this is the point they’ll let you know, and you can reach out to TrueNorth to support this process.

Some brokers require you to have a load pending or an invitation for the setup, so if that’s the case, we recommend you reach out to us as quickly as possible so we can help you secure that load.

How can carriers best prepare for broker setups?

We recommend a few things to ensure a quick and smooth process:

Be Curious

Lean into this partnership and trust that we will get you set up. Remain curious and open-minded. Ask as many questions as you have. Utilize us as an information base. We always want to hear from you and will do everything we can to support you in every way.

Be Confident

If you're a young authority, we sincerely hope you don’t let that keep you from calling brokers. Take the time to build relationships with brokers. Show them you’re ready to work hard and serious about this. It can be hard not to get discouraged, but we have every faith that your hard work and perseverance will help you grow your business.

Be Prepared

Have your documents ready and be prepared for the back and forth. This is a partnership, and while we are your back-end support to make the setups happen, we also ask that you cooperate and respond to any outstanding issues or questions so the process can flow as efficiently and effortlessly as possible. When you partner with us, you will always know how to reach us quickly, and we also expect to be able to reach you quickly, too.

Final Thoughts

TrueNorth offers a single platform for carriers to run and grow their trucking business. In addition to broker setups, when you work with us, you get factoring services, access to LoadCentral (which compiles multiple load sources and brokers into one), our fuel card, and back-office support to maximize your profits. Learn more here.

Note: While this article focuses on broker setups, TrueNorth also supports direct customer/shipper setups. Reach out and we’ll walk you through the process. It varies somewhat from the broker setup, yet still looks similar in exchanging important information and definition of the business terms of conditions.