Rates are garbage in Canada

Sad but true -
14) also growing too fast - taking on too much debt....
15) calculating and knowing your actual per mile cost - many people do not know how to do this and do not account for all the overheads
16) using credit cards for operational costs
17) buying new equipment when you could buy good used equipment and save on monthly payments
18) doing small repairs yourself / delivery and PU yourself so don't have to pay a driver - changing out wiper blades - takes time and effort but gotta save

 

All financed interest is calculated annually (12 months). So 3% per month X12 is 36% a year of your income going to factoring. If you got a 250 000k loan at 3%, the interest would be 0.25% per month.

 

All true except 17, a new truck is $3400/mo w/warranty, a used truck is $6500/mo with breakdown/repairs/service and downtime. The ones that went used, went bankrupt first.

I like the wiper blade analogy, I remember one guys going to the dealer for winter wiper blades, $550 dollars.....

 

Not completely true. It depends on if interest is compounded annually or monthly.

For annual compounding a straight multiplication of the monthly rate by 12 is correct (but 3% annually is actually .25% monthly ).

For monthly compounding you have to divide the monthly rate by 100 (3÷100=.03), add 1, raise it to the power of 12 (multiplied by itself 11 times), subtract 1, multiply by 100 (whew!), and there's your annual interest rate of...


42.6%

 

Sorry, I misunderstood. I never realized this kind of interest even existed - 3% monthly. I thought you meant yearly. That's crazy!

 

Thanks, I knew I would screw something up there lol.

 

This is why factoring is such a death sentence! I've literally pleaded with people to get a loan or line of credit or just SOMETHING other than using factoring companies (self factor).

But sadly no....they just factor until their broke.

 

So true - people don't realize that the 3% the factoring company takes is actually your profit...they take 3% of the invoice....it's insane

 

It's seems like you make more money driving someone else's truck, but the someone else has to have it all the way together, good freight, capital, and business plan.

 

It really depends, with reefer/van, I always made more personally with my own truck, leased on/contracting power only.

With guys I know who ran Super B tankers and decks, they usually did better as company guys.

Turnpike definitely better company, like not even close.

Flat, Step and Oversize its a toss up.