Minimal capital suggested starting off as a O/O

For a new guy running under his own authority, unless you have some direct freight and agreements made to be paid fairly quick, I would count on a minimum of 50 days and hope and pray for 45.
If pulling off of load boards, some brokers will give you quick pay, actually sell you quick pay as they charge you to give you your money, and some will even give you an advance once you are loaded.
That said, some do not work to much with start ups and there is no way to know if one of them will have a load when you really need it.
It is not hard to spend 20,000 bucks on just fuel, before that first nickle comes in.

 

"Start with 2 million to and you will end up with 1 million." Not my qoute but it's the old adage.
Just ask yourself what's the fasted way to use money that will depreciate itself the fastest.

 

What are you hauling?

 

Stock pile what you make. Factoring some companies are good some are horrid. There are some real haters of factoring here. The best ones allow you to factor any load you want and not factor other ones. Plus allow you to look at brokers credit scores. Non-recourse of course.

 

What are typical recourse rates? Or full recourse?

 

Yeah factoring is the first sign of trouble IMO. So, if your starting there then...

 

Cash flow is the biggest challenge. Wether you factor or not,try to get paid fast. The outstanding invoices, are really an investment, your hard work,fuel costs already done, waiting to be paid. At one time, I had $24,000 outstanding, from so called good brokers, everyone was paying slow. 6 week average. It was tough, to finance operating costs. It’s as if you never get the money, if always owed a certain amount, Thus an investment. In my mind anyway. I factor, don’t really believe it’s good bussiness, but for Me, it works. Keeps me on top of where I’m at always. Before, with all the uncertainty, I was always guessing.

 

Lots of companies factor, but there goes a another % of what you hope is profit.
If the plan is to use a factoring co, do some major homework and set up with them before you even start, do not wait till you think you will be needing it. Be sure and read the fine print, some go so far as to have control over your bank accounts.
I have not used any brokers for years, but did daily for several years.
Mercer would pay the day you faxed in your bills, IF you stopped at one of their terminals and had them fax it in, if not you had to send in the hard copy. they would also give you an advance once you loaded, 50% iirc.
Once I got to be a preffered carrier, landstar would pay me daily with a comcheck within hours of faxing in the bills.
CH robison would do quick pay cheaper than most, iirc it was 1 1/2 %
There were a lot of others.
I keep reading on here that a lot of brokers will not load a brand new carrier, I do not remember having that problem, but things have changed. I would assume it would be the better ones, if that is the case.

 

I keep 20 k in cash and try to keep my credit cards down. Need to repair truck with cards. Keep the cash to live off of. Have 3 months worth of rent and bills. I'm leased so I don't worry about fuel or factoring.

I had 45 k and now am at 27k. My brother almost died, didn't work for two weeks, had 6700 in truck repairs, tank fire in Pasadena Texas couldn't get to my truck for ten days. Paid IRS 6k still owe 4+. Changed cdl state and waited for hazmat to clear.