Bank Statement for a Freight Brokerage

Freight brokerages collect payment from shippers and pay out carriers, retaining the margin as revenue — a pass-through cash flow pattern that needs clear documentation for accurate profit reporting and because many brokerages rely on factoring to bridge the gap between paying carriers and collecting from shippers. Here is what to prepare.

Key Benefits

• Documents broker margin separately from pass-through carrier payments
• Supports freight factoring applications used to bridge payment timing gaps
• Shows revenue trends for general small business financing applications
• Provides records for reconciling load-by-load broker-carrier-shipper transactions

How It Works

1. Step 1: Download 12 months of business bank statements as PDFs
2. Step 2: Convert them to Excel with Bank Statement Converter to separate broker margin from carrier payouts
3. Step 3: Reconcile transactions against your load management system's records
4. Step 4: Provide the organized records to freight factoring companies or general business lenders

Frequently Asked Questions

Why do freight brokerages often use factoring?

Brokers frequently must pay carriers quickly (sometimes within days) while shippers pay on 30- to 90-day terms, creating a cash flow gap that factoring bridges by advancing payment against the receivable.

How is a freight broker's actual revenue calculated from bank statements?

It's the margin — the difference between what the shipper pays and what the broker pays the carrier — not the full transaction amount, which is why bank statements need careful reconciliation against load records.

Does freight brokerage need a surety bond?

Yes, federal regulations require freight brokers to maintain a surety bond, and lenders or bonding companies may review bank statements as part of that bonding or renewal process.

Can a freight brokerage get a business loan based on broker margin alone?

Yes, once bank statements clearly distinguish margin from pass-through carrier payments, lenders can evaluate the business's actual profitability rather than being misled by high gross transaction volume.

Convert Your Freight Brokerage Statements