Husband thinking of signing on with a very small company...

Some of the largest corporations in the world factor their receivables. It is a good way to improve cash flow without incurring debt. I would not discount any company that factors their receivables. In fact, it is smart business to factor if you need the cash flow. If a company is factoring they should not have to worry about paying their bills or meeting payroll. Factoring is just a cost of doing business. Many companies also use a commercial line of credit to finance their growth.

No company is going to open their books to any driver. It is none of their business. There is nothing wrong with checking with current drivers, but most would show the driver to the door who wanted to see their books. There are other ways in which to check out a company. Most of the time you can get a feel for people and how a company operates within a few minutes of conversation. A carrier doesn't necessarily need to have all direct shippers in order to be successful. There are brokers who do have decent rates. I doubt that there are any carriers who don't use some brokers for their freight, even with some of their own direct shippers. Sometimes, you just need to take a chance. Once you sit down and talk to them, you should get a feel for them and how they do business.

 

There is no need to jump to conclusions. If the company does pay on a 1099, the driver could still make more than he might under a W2. No one is forced to work under a 1099. There are plenty of jobs around. But, I would also not discard a position just because they paid on a 1099. There seems to be quite a bit of focus on whether the company pays on a 1099 or not. That would be the last thing that I would be concerned about when considering a new job. I would be more interested in the total compensation, home time (if that was important to me) and how their equipment was maintained. If you make enough money and are a responsible individual, being paid on a 1099 doesn't really make any difference.

 

Well, I individually thanked all of you because everyone gave some great advice. I do know the value of working for a small, independent operation but I also know you have to be very careful. All of you gave me different perspectives and I surely appreciate it.

 

Good luck with whatever you decide to do. Let us know what you decide.

 

Whats wrong with someone working their business out of a room in their house?

 

Nothing at all.

 

Thats what i thought; curious to see what "Allow me." thinks from the post above he don't like it

 

A lot of people in this industry have an office in their home. There is little need to have the expense of an office unless you get to a certain point where you need more employees. I know a guy who owns 16 car haulers and has his office at home. I don't know how he pays for his fuel, but there are still some who only use comchecks to pay for fuel. Personally, I don't think that it is a good idea. You can more easily track expenses when you use a fuel card. I would not care if the check came out of a personal account or business account as long as it was good.

I would look at the equipment and as long as it was well maintained, I don't see a problem. More and more smaller carriers are using older equipment. Older equipment is more reliable than much of the new trucks we see in the dealer shops.