Starting a business

lol true.... I know logs does her job to the letter of the law....but that does not pay the bills and I do not want to hear all of the leagal examples you have where drivers were screwed over royaly because of log infractions.....a legal beagle drive will run you broke......

 

You sound a little mixed up there. Or am I mixed up? Do you have your own equipment?
You mentioned You'll hire on Owner Operators. BUT YOU won't be driving.

Are you saying you'll have a truck ? but won't drive?
In that case , yes you still need

Authority, insurance and all the rest that goes with it.for a truck. OR,

Are you saying ,,, you'll hire on Owner Operators., find all the work for them but you won't drive or have your own equipment.

IN THAT CASE,
You Need to File For a Brokers License.,, not Operating Authority.
Them two are kind of similar but different.
You're not operating a truck.

Now am I the one confused? Or is it you?
Do You want Operating Authority? Or a Brokers Authority.?

And if you operate on a Brokers License?
Then you NEED , ALL THIS , BUNCH OF BUNCHES OF MONEY UP FRONT TO PAY ALL THEM DRIVERS.
You don't get paid from the SHIPPPERS ( CUSTOMERS) RIGHT AWAY. More like 30-90 days later.
And you have to CARRY TOP DOLLAR COVERAGE (real top dollar) for CARGO Insurance. A brokers authority is hard to get.

 

Is this true? Even if the LLC's are owned by the same exact person?

 

This brings up an interesting point. If I am correct he wants to have an all L/O company. Not unlike a few of the big CO's. Correct me if I am wrong but L/O drivers run under the companies operating authority even if the do not own any eqipment not each individual drivers or a brokers authority. This removes cargo and other exspenses which would be covered by the company. If I am correct then his idea is sound but until he has enough incetives like fuel, maintenance , tire discounts and such then his percentage will have to be closer to the 75%+ to the L/O. By all means correct me if I am wrong I could be way off base..

 

I don't understand where you're getting the 75%, 5mouthstofeed.? I must be missing something , back there on the posts.

 

I thought factoring companies existed to even out the buffer between small broker and O/O?

 

Pharmphil,,, don't even think about it. !! Factoring Companies are Loan sharks. Yes, they give you cash advances to help with your expenses upfront , instead of waiting on the customer to pay you.
But they make a contract with you in which they receive your customers check. And they keep a good lump sum from every check.
And you can't just stop it when you want to . If you have more than one customer, you can make arrangements for them to have one of your smaller customers , your account receivables. But eventually it will catch up to you working in an operating loss, instead of getting ahead. Because in this business , every dollar counts.

Do you know why this country is failing??? Do you know why Companies are going under and down sizing???
Because the Majority of Companies in this Country have been operating off of Credit!
Especially the Retail Businesses! And they don't have the Cash Flow to Keep Operating at the Level they are at. Relying on Credit And Bank Loans.

 

LOL, no I'M not going to use factoring! Just saying a broker wouldn't necessarily have to have all those holdings. Just the bond.

I modded at a credit board for a couple of years. I don't think it is inherently bad. For instance my broker pays full at 30 days, but charges 1% for 14 day pay, 2% for next day, and 3% for same day and eligible for 25% advance. In my case, I wouldn't pay any rates by using my credit wisely which will give me upwards of 55 days at no cost to me, and yields 1.25% cash rewards for the funnelling. I don't use cash ever or pay interest, and I get checks all the time for this practice.