Talk me off the ledge please. .

jump in the water is a little deep but the swim can be refreshing, there is no substitute for having your own authority if you can make a go of a LP program you will be fine on your own.

 

if you did good as a lease operator and an OO, then i dont see the problem

customer base? start with load boards, get quick pay on every load, stay away from factoring companies, make sure your truck is in sound condition, you will do fine

financially and mileage wise, you will wonder what took you so long and kick yourself for not doing it sooner

 

What is the difference between quick-pay or factoring????

 

If it was me, I would buy the truck, and lease it on with Mercer or Landstar to gain customers first.. That will also give you time to get back into flatbed and getting customers and brokers that you can work with..

You can get your own Authority while setting up your customers and brokers and switch when you are ready...

 

Good post!

 

quickpay, you are working out a deal with the broker

factoring is a third party mafia coming to your rescue

 

I wish I could say jump on in the water is fine. Its deep and a little cold, other than that no big deal. Look into the quick pay and factoring real heavy, if its not paid by the customer in so many days they zap it right back out of your account. That makes there interest of no use to you.

 

In reality, not much depending on the deal you have with your factor. You either give up a portion of your rate to the broker or to a freight factor. The factor may have recourse options if the debtor doesn't pay your invoice (they just take the money back). Getting out of a factoring deal can be difficult, quick pay is much easier to cancel if you want, sometimes you can do it load by load depending on the broker.

To the OP, it's been a great year for me. Everyone has been desperate for trucks and rates have been very good. Next year, who knows. Hopefully the economy down here keeps chugging along.

 

Lets look at this picture... A good used truck and todays prices.. 2011 used pete, kw, freightliner,
500 to 600 K miles.. No Warranty ( unless you want to pay around 5k for and outside warranty) Most Mega Carrier trade in have capped tires.. Price tag : Between 68k and 82k
What kind of trailer are you going to buy , but lets say that price tag : Between 25k and 50k
Insurance ( Million Dollar Policy , Plus Truck and Trailer Ins. : Between 7,500 and 10k a year
Cargo Ins. Since you are a new business its going to be costly.
You will have to carry at least an $100,000 Policy : Price Tag Between 7,500 to 10K a year
2290's 550.00 a year
Base plates depends on the state.. price tag Between 1,300 and 2,700 a year

Freight To Haul... Most direct shipper billing cycle is 25 to 30 days..
Broker freight.. mostly fairly cheap freight.. billing cycle is 25 to 45 days..
Factoring your freight bills.. will cost you around 5 percent of the invoice depends on your source.
In Todays economy , I can't see it... too much upfront cash laid out without any guarantee returns..
I am an owner operator , I have a 51 Low pro Step.. Shippers and brokers are still trying to move freight with the 1980's freight rates.. they don't want to pay detention, tarping, my favorite all inclusive fuel surcharge... figure that one.. lol
All I can do is wish you the Best... But make darn sure you do all the math... because its very easy to end up bankrupt...

 

Good thing you still have some time left as a L/p.
There is a storm brewing in the Middle East and if it all goes pearshaped............the economy might slow down fast.