In a year you should have the money to pay your owner ops like a clock, as long as you don't have a bunch of screw up drivers screwing up the cash flow with damages freight. Why would you continue paying 5k per truck per year when you could pocket that instead?
What happens to you guys during a recession?
Discussion in 'Ask An Owner Operator' started by Driver Eight, Jan 11, 2020.
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Taking my example, a guy making $8000 per month will never save up enough cash to get out from factoring, it's not gonna be one year. It's better to bring more o/o on board and pay a smaller factoring fee, like getting 10 trucks and paying only 1% in feesRideandrepair Thanks this. -
I was talking about adding trucks to your fleet for what it’s worth. As in buying trucks and hiring drivers. Where if you have an engine go your on the hook for it vs just throwing the owner op aside and finding a replacement.
I still don’t like factoring under any scenario though unless it’s to get started your first year and that’s not even ideal.Rideandrepair Thanks this. -
Cash Flow, I was amazed to find out, during the Banking Crisis, that Major companies borrowed payroll on a weekly basis. That’s crazy. I guess it has to do with balance sheets, and stock price. The largest Corporations carry debt. It’s necessary for them to Operate. All the Governments Federal and Local, same thing. Our monetary system itself is a debt based scheme. I hate debt, but it’s a necessary Evil sometimes. Very few Trucking Companies are debt free. It’s similar to Farming. The Little Guy couldn’t compete, unless He borrowed money for equipment, and farmed more acreage. A lot of them lost everything, and some went into debt with Equipment, and Succeeded. The overhead for equipment and hard work involved with Trucking, is hardly worth the return. It takes a while to figure that out, at first. But eventually reality shows up. This is just a slowdown, not a recession. When a real recession shows up, that’s when the reality hits.
dwells40 and Midwest Trucker Thank this. -
Rubber duck kw and dwells40 Thank this.
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Midwest Trucker Thanks this.
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Last edited: Jan 14, 2020
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Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
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