Freight broker not paying: what a carrier can do

Updated 2026-10-24

If a freight broker is not paying, gather the rate confirmation, signed bill of lading and proof of delivery, and send a written demand citing the agreed terms. If that fails, check the broker's authority and bond in FMCSA records and file a claim with the surety on its $75,000 BMC-84 bond (or the trust on a BMC-85). Act quickly, since many carriers may claim the same bond. For larger or disputed balances, use a transportation collection agency or attorney.

Start with your paperwork

• Signed rate confirmation or broker-carrier agreement showing the rate, accessorials and payment terms
• Bill of lading signed at pickup and proof of delivery signed by the consignee
• Your invoice, the date it was sent and how it was submitted (portal, email, factoring company)
• Any detention, layover or lumper receipts the broker agreed to pay
• Emails or load board messages approving changes
• If you factor, the notice of assignment and the factor's records, since the factor may own the receivable

Rule out a paperwork problem

Brokers often delay payment because something is missing: an unsigned POD, an invoice sent to the wrong address, a rate that does not match the confirmation or a claim for cargo damage or shortage. Call the broker's carrier payables department, confirm they received a complete packet and ask for the scheduled pay date in writing. If they raise a cargo claim, ask for it in writing with documentation. A broker that cannot point to a specific problem, keeps changing the story or stops answering is a different situation.

Send a written demand

Send a short demand letter or email listing each load, the agreed rate, invoice date, amount and days past due. Attach the rate confirmations and PODs. Give a firm deadline, often 7 to 10 days, and say that you will file a claim against the broker's bond and place the account for collection if payment is not received. Only state next steps you intend to take.

Check the broker's authority and bond

Freight brokers registered with FMCSA must maintain financial security, generally either a $75,000 BMC-84 surety bond or a BMC-85 trust fund agreement. You can look up the broker's MC or USDOT number in FMCSA's licensing and insurance records to see whether its authority is active, who issued the bond or trust, and whether a cancellation is pending.

A pending cancellation or revoked authority is a warning sign that the broker may be failing. That is the moment to move quickly.

File a bond claim

Contact the surety company or trust administrator listed for the broker and ask for its claim procedure. Submit the claim with your documentation: rate confirmations, bills of lading, PODs, invoices and proof of your demand. Keep copies of everything and note the date it was received.

The $75,000 is the total security for all claims, not per carrier. When a broker collapses, dozens of carriers may claim the same bond, and the surety may pay valid claims as received, divide the bond among claimants or ask a court to decide. That is why filing early matters. Bond claims also have time limits and procedural rules that depend on the bond terms and the surety, so do not wait to see whether the broker pays next month.

Other avenues

Depending on the bill of lading terms and the facts, a carrier may sometimes be able to pursue the shipper or consignee for unpaid freight charges when the broker does not pay. Outcomes vary: courts look at the bill of lading language, the parties' agreements and whether the shipper already paid the broker. This is an area where specific legal advice is worth getting before you send a demand to a shipper you may want to haul for again.

Watch the time limits as well. Federal law sets a limitations period for motor carriers to sue to collect their charges, generally 18 months under 49 U.S.C. §14705, and state limits may apply to other claims. Confirm the period that applies to your situation with counsel.

Lower the risk on future loads

Before booking with a broker you have not worked with, check its authority status and bond in FMCSA records, how long it has held authority, and whether its name, address and phone match what you see on the load board. Look at days-to-pay and credit ratings from the services you subscribe to, and ask other carriers about their experience.

Keep exposure in proportion to what you know. Limit the number of unpaid loads you will run for a new broker, use quick pay or factoring where the economics work, and stop hauling for any broker that falls behind until it catches up. A broker that owes you for three loads and keeps offering a fourth is often a broker in trouble.

When to bring in help

Many carriers file bond claims themselves for small balances. For larger amounts, multiple loads, a broker that is still operating but refusing to pay, or a dispute over a cargo claim offset, a commercial collection agency that works transportation receivables can apply pressure and track the bond process. We collect broker debts on contingency and, when suit against a broker or shipper makes sense, coordinate with a local attorney after you approve it. We are not a law firm and do not provide legal advice.

Frequently asked questions