The Anti-Lease Purchase Program

the bank wants 30% down for an SBA Patriot Express veteran loan.

once I learned that, I sat back and reviewed what it is that I can do with less money down. Because that 30% was like $28,000.

I can get a truck from Lone Mountain for under $5,000 down. And the payments would be within my plan. There are other places that finance as well.

But either way you look at it. Money wise, for 2 months operating expense and down payment, you will need about $35,000 free cash. $5000 for down payment and $30,000 for operating expenses.

 

I am past reviewing it....

I think I am trying to beat water out of blood now.

Partly why my wife just wants me to back off, collect the paycheck and "coast" for now.

We have the plan, we have a method.

It's just doing it now.

 

I had a plan ( it wasn't 40 pages) I wrote down everything and I still forgot or made some errors.

I predict the two of you will work together in the near future

 

It's been discussed.

As a new independent, I realize that there are a few things that I am still lacking.

Carrier contracts, rate negotiation, billing, receiving, invoicing, IFTA filings etc. All of those will be included into the Business plan as well. It's a living document that explains to an outside observer what your company is, does and how. It should be well enough understood that anyone can pick it up, use it, follow it and succeed at that business.

I have worked as a truck mechanic, driver, shipping, receiving, accounting, dispatcher.

But I haven't actually contracted with a broker, performed actually billing/invoicing etc. Things specific to this level of Owner/Operator.

I know I can stumble through it all. I have that background business wise. But if you can find a good mentoring system and it helps lessen those risks/expenses, why not use it?

 

I know I can stumble through it all. I have that background business wise. But if you can find a good mentoring system and it helps lessen those risks/expenses, why not use it?

Nothing at all ... I think it would be a good thing and would probally work out well for both parties from what I can see on the surface, please don't be offended by my questions im just slightly nosey

 

no offense seen.

All good questions.

I have a train of thought and you are trying to understand it. All's good.

8 years of using web forums like this, you start to "pickup" on inferred meaning of questions.

Bill's model is something that would help me fill in my gaps I am lacking and take me to the level I will be comfortable to some day be truly independent.

There are things I am looking to re-evaluate that he and I have talked about. (in-house vs outside truck financing) But it's well on its way to happening.

 

That's great news!!!

If I had my own authority I would have lent a hand. Ive always wanted to pull a hopper bottom, that is the one thing I have never done.

 

I may be dumb as rock and might have missed something who is financing the truck then.

 

Bill,

Good luck with your plan. We looked at doing something similar as we just wanted to see people succeed. One suggestion though is making sure you have a transportation and contract law attorney look over all your agreements but more importantly, a good transportation attorney should be able to give you some good feedback on your liabilities. If you are a named party to the financial obligation of the truck, you'd be surprised what you could get pulled into. We have a very litigious society and to have a third party take your business away when you were trying to do something good blows but its a potential reality.

We had issues with the transaction being non-arms length if we required the driver to be leased on to us until the completion of the financial agreement. In terms of absolute independent contractor status, if they are purchasing the truck from you, they should be free to lease on where ever they choose. For that reason, you ought to set up a separate legal entity for the truck transaction side of the business. It will mitigate liability and legal connection in regards to law suits.

As a BFI, you could afford the legal ramifications and self-insuring. As a small business, I think the more protection you have built in the better. Just my 2 cents worth. I always say... you never know someone until you divorce them. Even though you don't want to, you need to plan as if you might have to.

Good luck with it! Sounds like you'll have your driver pool full.