Hire other O/O

I pay the O/O leased to me 90% for all loads but he pays for the regs which is under both are names as per state rule,fuel tax, ifta decals and the cost of his insurance, being a small company i get no discount on insurance. Am i makeing a killing no but it keeps my customers from going elsewhere. I made up a lease which we both sighned and he gave to dmv for regs purposes and keeps in the truck for the dot. I have known this guy all my life so i'am at ease with him running under me. I could use more O/Os but i'am a little nervous trusting others to run under me from what i've seen out there and don't want to lose customers or have lawsuite issues with accidents.

 

I'm not really any help here.....but I was curious if you had given any thought to having other folks run under your numbers and CSA 200?

A buddy of mine told me that he was never going to do it again because the points that drivers get on their CSA score also go on the carrier.

He was concerned because he's heard from somewhere that brokers and shippers are going to have access to the scores. Don't know if that's true or not, but if it is, I can see that being used in choosing a carrier.

And then, of course, insurance costs. Of course, he had two guys running under him that were total outlaws, but weren't even trying not to get caught. They'd pay the fine and go on. Now they find that CSA will go back a few years to tally points.

Again, I was just curious if other folks running their authority gave it any consideration when letting other O/O's lease to them.

 

Make sure you have the money to pay them when you told them you are going to. That is the biggest problem I see when people first get started.
Some customers take awhile to pay and some brokers never do and are you going to pay them even when you don't get paid. I don't know your financial situation but I have seen it happen time after time and friendships end and lawsuits start.

 

could you not sell your freight bills to one of those companys that pays for them and let them worry about collecting the money?

 

Well technically, when doing your own loads you could either just ask for payment or use low-cost recourse factoring company. Then if you have to pay a driver ASAP then you can use another non-recourse factoring company at a higher cost, but at least you'll know that you didn't pay somebody else for something that might be charged back in the far away future.