Becoming an Owner Operator Question.

1.try peer to peer lending 2. ask family members to invest 3.sell all unnecessary items like tv, extra car.... and i hope out worked out a business plan as far as wages and expenses like bobtail insurance ,fuel ...

 

Do not borrow money from family. If something happens and you cannot repay them it's not a good situation. Pay cash if you can or borrow from a bank.

 

Those companies should be able to qualify you before buying a truck.

 

It comes down to a lot of guys think they can get financing, but end up not being able to. It is far easier to buy a $50,000 car than a $30,000 truck. Most decent companies should qualify you though and give a letter of intent so you can buy the truck. All finance company's are going to make sure the truck has work available, and they do that by a letter of intent usually for first time owner operators.

 

For the first time yesterday I saw the documents of a bank pulling financing when person wanted to go from one carrier (that the bank approved of) to another carrier.

What was interesting is Carrier A was a poor carrier but better pay. Carrier B didn't pay well but no CSA issues and well established.

Bank just did a basic business plan with limited understanding of the industry and said he couldn't afford loan under new carrier.

 

Wow Bill. Even though the second company was better the bank shot him down. That makes no sense but who knows these days what banks are thinking..

 

my bank approved me with my just showing them the paperwork to get approved for CH Robinson....go figure. But it was a Patriot Express SBA loan too.

 

Thats Cool MN. How long did it take them to approve ya

 

a patriot express is a special "shortened process" for the SBA loan. I had an answer in two days.

http://www.sba.gov/content/express-programs