Authority Lease On.

Running load board freight?

 

Where does your freight come from?

 

Where do you source your loads from?

 

What's your lawyer say?

 

What you are asking is definitely doable that’s exactly what every trucking company that leases O/O on df course the biggest downside is the risk of what could happen so of course you should be incorporated in what ever fashion seems fit.You can’t grow if you don’t take a risk.Now personally it’s the hardest way imo when the business plan is based on load boards me I would never lease a truck to a company that had no customers other than brokers your part is good but can the guys find frieght to pay for there expenses .If you have good relationships with some brokers definitely helps.I’m guessing you have figured out how you are paying them like are you making them wait for the broker to pay you which could be around 30 days or paying them b4 the broker pays you.Imo it’s going to be much harder to find guys who will wait or can afford to.If you’re factoring where does the 7.5% coming from if b4 factoring then the guys are actually looking at loosing 12 to 15% instead of 7.5%.But your biggest problem will simply be finding guys who would do this because it sounds like they would need there own trailer,there paying the intire amount of there liability and cargo insurance there running on load boards they are responsible for there fuel and licensing why would anyone do that when they could pay a couple hundred dollars and just get there own authority you really aren’t offering anything that would attract most OOs

 

7.5% and you'll starve.
Insurance: Are they making that down payment?
Are they seeing the actual payment?
Payment: Are you going to factor?
Are they paying that charge?
Make them wait until you're paid? (Reg's is 15 days to pay the O/O)
There are so many other things that will cost you money, it's not just sitting back and collecting it.
Could spend hours showing you the little costs you'll incur.

 

I will repeat, what does your lawyer say?

Why?

Because if you want to be the idiot who just signs on owners, you will either end up screwing people over when it gets tight, or you will have to deal with a huge insurance bill and a liability that puts everything you own at risk.

You need to cover the legal issues before the finances and then put it all together and have your legal advisor, lawyer, make sure you have the RIGHT contract, set it up with the RIGHT things needed, all to be compliant with the FMCSA and the states.

 

Everything wichris said and more. Just wait until they get you a bad inspection with a few OOS and quit. Then your safety score plummets which kills your insurance renewal quotes. I wouldn't lease anyone on for less than double that, 15% plus expenses. You might make enough for the aggravation at that point. I had a guy leased on for a flat 20% that I paid for insurance, elog, factoring, etc and I netted $136 a week over the 8 months while listening to him ##### about "my cut". I did better on a couple others but nowhere near what you'd expect. What you can get by with as a single truck o/o just doesn't work with multiple trucks, so you'll need payroll, a TMS, lots of money to front payroll or use factoring, if you're providing IFTA and IRP dealing with the state, and lots of other things.
About a year ago, when filing KYU, I filed zero miles and the return was rejected. It turns out an o/o who had been gone for 4 years was still using my DOT in his Prepass. You get to run into a lot of things like that. Good luck.