If I lease on to a company, do I collect the load pay myself?

Discussion in 'Questions From New Drivers' started by Clutch D. Diesel, Sep 15, 2021.

  1. Clutch D. Diesel

    Clutch D. Diesel Bobtail Member

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    Or does it go to the MC holder and then they pay me?
     
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  3. MLC Adventures

    MLC Adventures Medium Load Member

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    Yeah, they gonna get paid before you
     
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  4. MTN Boomer

    MTN Boomer Road Train Member

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    Have you signed a lease agreement? Everything should be in the agreement, what percentage, when do you get paid?. If it is not, It could be a problem later.
     
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  5. MysticHZ

    MysticHZ Road Train Member

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    Actually, for any reasonable lease, the reverse is true.

    Part of the what you get with a lease is factoring. Generally you're paid weekly, for all load completed the previous week. Some pay by the load after it is completed.

    On the other hand the company gets paid up to +30 after they invoice. And depending upon the efficiency of any given companies billing group it could be 1 to 2 weeks before they get around to invoicing.
     
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  6. Clutch D. Diesel

    Clutch D. Diesel Bobtail Member

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    I haven't signed anything - super preliminary stage rn.
    Was thinking about going O/O instead of company because I think I could swing it by July and was surprised at how fast someone offered to take me on.
    However, the guy has a ... reputation let's say, and I would run not walk if he got his hands on the money first.
    I have looked over some agreement terms that should be included in a lease but couldn't find anything that really said who got paid first, but it looked like generally the MC holder would and then I'd get paid by them. I understand why, but with him I just don't think I'd do it.
    He's down with me dispatching myself, which I like. I'd just have to pick either he does it or I do so there's no confusion ever about loads/availability.
    Tell you what, it's a lot of liability for him to take on a brand new O/O like that. He's Hot Shot and would like to get a Class 8 running too.
    I suppose he has more to lose than I do, but still ...
     
  7. wis bang

    wis bang Road Train Member

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    Every lease I've seen or used has a section on payment.

    usually something about paying within "14 days of receiving all paper work, including POD, Delivery orders, logs inspections, etc."

    However most settle weekly and are paying the operator long before collecting that actual revenue. Most carriers do attempt to speed up processing loads and getting invoices out as quickly as they can.

    Matlack would process any terminal's papers as a unit traveled around. The terminal would close it out in the computer and add it to the overnight bag to Wilmington. Overnight all the closed manifests would print invoices to be matched up to the overnight deliveries and mailed unless there was some question to research first. any lease operator's settlement was credited every Monday morning and sometimes a guy would think a load should have been on this week's check and I would look at the invoice date in the 'Puter and the invoice date would indicate that it WILL be on next week....

    Payment times are affected more by the customer who takes longer to pay when times are slow.
     
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  8. MTN Boomer

    MTN Boomer Road Train Member

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    Leases where 1 or 2 pages. Now.. is a book
     
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  9. Dockbumper

    Dockbumper Road Train Member

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    Keeps the lawyers busy!:rolleyes::cool:
     
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  10. Moose1958

    Moose1958 Road Train Member

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    Most of the time the shipper pays the broker. Sometimes there is no broker and the carrier bills the shipper. Even with drivers running their own authority most will see the Broker as the one that gets the payment first. There are many hands in that kitty way before that kitty reaches the driver! This is one aspect of trucking you need to learn!
     
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  11. gentleroger

    gentleroger Road Train Member

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    That is your answer - don't sign on with him. If you can't trust him with money, what can you trust him with?
     
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