To evaluate any business performance one need to draw out the difference between its income and expenditures. The difference between the two accounts for the profitability of a business. In case of the owner operator jobs, the income is calculated from the paid mileage per month. And the expenditure would include the installment for truck and trailer payments, licenses and permits, tolls, fuel cost, insurance, maintenance and repairs, road and fuel tax, office expenses, factoring services and salaries. The difference in the two will give an owner operator its profit from the business.
If the expenditure is reduced, the income is automatically increased and thus the profit. Few essential business practices to generate profits for owner operators and small trucking companies:
Thorough research of the pros and cons of the industry: You cannot jump into this with your head first. If you have experience as a driver and you know the industry well then you can look forward towards it. However, if you are new to the industry then you need to do your homework before starting with the venture. All calculations and feasibility should be kept in mind.
Emergency Fund: For an owner operator job to run smoothly and climb the ladder of success it is a must to maintain an emergency fund. In case of the truck breakdown or any other crisis you can utilize the fund to solve the problem so that you can get back to roads soon to avoid more loss.
Adequate use of Load boards: With modern innovations you can utilize the services of load boards by large found on the internet. This will help your truck keep going on the roads. With its regular usage you will not have to depend on the traditional methods of personal approach. You can directly get exposure to better deals and loads available for hauling.
Coping with Deadheads: Sometimes it becomes inevitable to avoid deadheads and you have to haul loads to such dead areas. In this case you need to increase your pay per miles so that the deal comes out to be profitable for you. If this doesn’t work out and you are in a situation to afford to sit idle for a day than do not take the load and wait for a better business deal.
Factoring and Insurance Services: If you can make use of a person who can handle your business accounts such as receivables and collections then you should not avail factoring services. This would increase your profit margin. Similarly before taking up an insurance do market research and get the best offer in it.
Negotiate Well: You would maximize your profit if you negotiate with the clients and brokers well. Always calculate the minimum level below which you would not finalize the deal. As you need work the businesses and brokers too need you. Be flexible but not too much, make your requirements clear.
To become a successful O/O you need to have motivation along with set plan of actions and business skills. You can only be successful if you want yourself to be successful.
How to Become a Freight Broker?
A successful freight broker is a highly paid job; however a little cost incurs from your pocket to establish yourself as a freight broker. As a freight broker the job responsibilities will to match the shipper’s requirement with the carrier company. The person looking for owner operator jobs can get the assignments from the freight brokers to start of their business.
To become a freight broker you need to undergo following steps:
1. Legal Procedures to become a registered Freight Broker:
• Broker’s Authority: In United States Broker Authority is given by Federal Motor Carrier Safety Administration (FMCSA). FMCSA is the division of Department of Transportation here and is an authorized body to issue broker license. In order to get the license one has to fill the form OP-1 which is an essential step to own a broker license. This step costs $300 to an individual.
• Surety Bonds: Any prospective Freight broker will have to purchase these financial instruments worth $10,000. This trust fund or bonds acts a security deposit which can be put to use in case you brokerage services incur any losses to the parties involved.
• Processing agent: This procedure requires you to select one processing agent in the country of your business operation. This role of the processing agent arises in case of any legal disputes. To appoint one such agent you need to fill in the form BOC-3. The form fee is $50.
2. Freight Broker Training:
• To become a successful freight broker you should know the trucking industry and its requirements well. You should be well versed how the trucking companies work. What are the different trucks types and when should one use the specific trucks meant for the purpose? The broker should work in the close liaison with different truck drivers such as flatbed drivers, reefer drivers and hotshot drivers so that the loads available are efficiently trucked.
• If a person is new to the industry and want to start his business as a freight broker then he can enroll himself with many freight broker programs run throughout. The programs will help you build the necessary skills and knowledge required to start off as a freight broker
3. Business Setup:
Now that you have undergone the legal procedures and have got enough information on the industry, you will require a business setup to start off. For this the minimum requirement will be one computer with internet connection as most of the deals these days are finalized online by using the latest innovation in the field freight load boards. Then, you need a telephone and fax lines to fasten up the deals and fast communication with the clients and the truck drivers. To accomplish smooth and controlled processing you need to buy efficient broker software.
Here you are completely ready to start off with your profitable freight brokering business. For people who do not have sufficient funds at hand to make initial investments, they can start their work under any registered freight broker as an agent. In this case no start up cost will be incurred and you will get the exposure in the industry before you have enough funds to start on your own.
Importance of Freight Brokers in Trucking Industry!
Freight in general terms is referred to as goods that need to be transported from the place of production to the place where it can be utilized as a commodity. For freight shipment various modes of transport can be availed depending on the requirements. Airlines, ships and trucks are the three main modes that are used globally for shipping of goods. These days intermodal freight transport has gained its importance when the cargo safety is of utmost importance. Freight brokers helps create new owner operator jobs when any such requirements arise.
Now the question is how the manufacturers or producer companies can avail an efficient freight transport system to distribute their goods safely and on time? Here comes the role played by Freight Brokers. Freight broker acts as a link between the companies or individuals that need shipping service and the truckers and owner operators that provide shipping service. The shipment price is decided keeping in mind the rate which is beneficial to all the three parties involved for the goods shipped. By paying a little commission to the broker the shipper can get the required reliable shipping service without putting in efforts to find one themselves. Some companies hire fright broker to take care of the complete shipment procedures of theirs.
Freight brokers avail the services of efficient load boards. They can track all the trucking industry information and updates from the load boards. They would come know of any available loads or if any company is in need of the broker service. Simple bidding by a few clicks of your mouse button and the job will be yours. The broker in turn will contact the shipper and the trucker to accomplish the task. This is both economical and reliable for both parties. With the professional service by the broker the shipper can track the real time location of the shipped goods whereas the carrier companies and individual trucker can get the quick payments for the goods delivered by them with fright brokers in between to smoothen up the process.
The expert service of freight brokers are really important when the goods to be delivered require special shipment process, such as LTL hauls, long hauls. In case of the goods being hazardous they wood require exceptional freight transfer techniques. As the brokers know the trucking industry inside out they can provide with such special services efficiently.
Many of the freight brokers are the ones who themselves have worked with some trucking companies. They have gained the technical skills and experience and now use their knowledge in a more rewarding job of the fright broker. There are many freight broking programs running across the world which can make you a professional freight broker in the trucking industry.
Thus we see the freight brokers are playing a vital role in trucking industry. They provide fast and efficient trucking solutions to the shipper and provide with valuable jobs to the shipping company. They widely use their personal contacts to keep climbing the success ladder in the industry. For information on How to start the freight broker business check out other posts by us.
To get the needed working capital for making rapid progress and business expansion, factoring is a great way. It can boost your company with needed cash flow. This is not a loan type which banks normally offer. It is just paying you for your bills earlier than you would otherwise get it from your shipper. In this current world and economic condition its very effective and a great alternative for banks. For owner operators and small truckers freight factoring has become a very beneficial and reliable financing tool.
Freight factoring is a service which is provided by RTS and it’s a much featured service of them. Many extreme benefits are introduced by the company. The most promising features are:
- The invoice processing system is digital and also has a very easy account set up system.
- The credit card issued by the company has unlimited access and also has the access to the customers reporting services.
- Every customer can have their own and single account representative who will keep the record of their every transaction on factoring. The account representative of yours will always be at your service.
- There are no hidden fees. Every transaction is open to customer so that customers can know where they are charged and where not.
- The RTS factoring rates are highly competitive.
RTS can also provide many financial facilities for the trucking companies. It understands the necessity of capital in this field of business. As trucking companies have a lot of expenses like fuel cost, insurance, payroll etc. So they may need immediate cash at many times. In their critical condition RTS can help them by providing immediate cash. The company will purchase the freight bills of the owner operators and will provide the needed cash flow for the owner operator jobs.
There are many businesses which fail to come out with their ideas only because of not having sufficient cash in hand. RTS Freight factoring is a great solution for them. There is no debt incurred on you in return of fast and reliable service. You can find information about them online and also can find many effective links there like transportation publications, load boards, weather info etc.
RTS has a wide range of publication all over the world. Many international companies are linked with them for their featured services. Thus the company is playing a vital role in the global economy. It is very much proficient in their work field.
The company is still developing in many sectors as it strives to strengthen the position more and also expand their market position. Because of its services many international companies have become successful in achieving their goal and are still on their way with RTS. The need of working capital to make any freight and trucking business successful can be fulfilled by acquiring the freight factoring services by RTS. The company is known for its fast funding. The company also provides funds for fuel if needed. They can become and act as your collection partner to tackle the tough shippers.
If you are an owner operator or running a small trucking business, then this article will be very helpful for you to bring proficiency in your business and skills. Most of the time shipping and trucking companies face cash interruptions as they wait for the enlisted companies to whom they have provided the trucking services to pay for their work. Therefore to maintain continuous cash flow to your business, as an owner operator you can utilize factoring facility. Efficient freight factoring services is provided by many finance companies today.
By utilizing the facility of factoring, truckers get the payment immediately after the delivery of the goods. The payment is not dependent on the payment done by the shippers. The invoices of the trucking company are first purchased by the factoring company. The company does the payment against the bills to the trucker. This step is essential for small trucking business as there are many regular expenses to be tackled such as fuel, truck maintenance and repairs. Factoring can help you to get payment on time to full fill all these on going expenses.
In this world of technical advancement the factoring facility is also available online. You can utilize the factoring facility by simply connecting to the internet. Among the online factoring companies the name of “orange commercial credit” is well known because it is the name of trust and reliability.
Orange commercial credit is a company which provides very affordable rates of factoring which is less than 1%. And it is very quick cash providing company. So you don’t have to wait for 20 to 30 days to get your bill to be cleared. The Company provides different factoring programs depending on the size of the trucking business and the size of the trucks which are being utilized in the business.
Orange commercial credit provides the good credit management and credit information service. Through orange commercial credit you can also get the information of highest paying shippers and brokers by getting access to its load board. The load boards will also let the shippers contact you for their delivery order. The credit checking facility provided by the company is completely online. You can access the information of credit stored in a balance sheet. Company has the professional account operators to ensure the quality of the service provided. There is no debt incurred on you when your avail their factoring service. The company also provides invoice processing and collections services for your benefit.
Factoring facilities provided by the orange commercial credit can be easily availed by registering through their website. There is no registration fee or start up fee. You just have to fill up the form available and get an access to its freight factoring services. The company will provide you with immediate cash to keep your business going.
Orange commercial credit is providing the factoring facilities since 1986 so there is no doubt about its proficiency and reliability. The qualifying process is also easy thus making the whole factoring experience for the owner operators very quick and hassle free.
How Does This load board Help Me If I am a Truck Driver or Owner Operator?
If you are Truck Driver or Owner Operator you are going to use this load board to find available truck loads in your local area or to move truck loads from state to state. load board Once You have found a truck load that matches your trailer type, simply contact the shipper of that load with the contact information the shipper left when the shipper placed the truck load. Find Freight Loads is not the Shipping Company, we are a freight matching service the utilizes our load board to match freight between you the truck drivers and the shippers placing the available truck loads. Click Here If You Are Looking for Local Trucking Companies. We Have over 30,000 Trucking Comapies Nationwide in our database. OnlyRegistered Members can view contact information for an available truck load.
Factor Loads: Factoring Solutions
Freight Factoring is a process by which the trucker can be paid immediately after delivering the load he has just transported. Independent truck drivers or smaller companies hire a factoring company to handle the collections on invoices. The factoring Company pays a portion or full amount of the freight bills minus their fees up front. Sometimes the factoring company holds the remainder in an escrow account, which cannot be touched until the company gets the receivables. This gives the trucker the needed cash for expenses he has incurred or will incur on the way home or to haul another load. The factoring company is then responsible for collecting on the bill. It might incur hiring legal help to collect on this debt or the customer may not pay for months at a time. By having a factoring company to handle all this, the independent trucker is free to get back on the road with further assignments.
Factor Loads factoring company is not a bank. They know it is important to keep truckers on the road. It is important to have a factoring company who understands how your business works otherwise they could not handle the finances of your business properly. Factor Loads is a master in the field because it is set up by the industry experts. They decided to fill the need of fellow truck drivers and owner operators like themselves.
The account management program offered by Factor loads can be found on their website and viewed at any time to keep the record of the account anytime you require.
The company offers non-recourse factoring programs that are mostly focused on owner-operators and small trucking companies. With non-recourse factoring, you will be paid on the same day the freight is factor through Factor Loads. You need not fear of the losses if the customer pay or does not pay as the bad debts will not be reverted to you.
Benefits of working with Factor Loads as compared with traditional freight factoring companies is that Factor load provides customized factoring service which is based on customer by customer and load by load. This will enable you to transact your reliable customers yourself and others you can get factored. You can access the database of your customers which are pre-approved. The factoring company will make the process very convenient for you with no freight bills requirement, no hidden fees and no monthly minimum bills to be factored. It is ideal for owner-operators and small carriers who are unable produce same volumes every month. Larger companies can use the services in the time of deficit.
The company offers new incentives as the fuel and maintenance discounts for your carriers. The spot factoring feature of the Factor Loads will help you to concentrate on the key areas of your business. This will give you the liberty of which invoice is to be factored at what time to maintain the efficient cash flow to your business. By factoring with Factor Loads you also get a complimentary loadboard account to ensure owner operator job flows.
With the economic uncertainty today, getting the payment for the work you have done is really important. The easiest and the safest way to get the payment in the trucking industry today is through factoring. When considering freight factoring let us discuss the factoring services by 1st Commercial Credit LLC. This is the most reliable and best factoring services providing company in the United States.
A brief on what freight factoring is? Freight factoring is basically for the truckers or the trucking business. These truckers can immediately get the payment after completing their work through freight factoring even if the shippers who are using the trucking facilities have not paid the shipment charges. The freight factoring company releases funds for the carriers by purchasing invoices of the shipping company. Therefore, the interruption of cash flow is avoided for the survival and growth of the trucking business.
Choosing 1st Commercial Credit LLC as the Freight Factoring Company for You
Logistics and Freight Factoring have become so popular that you can easily get a good factoring service online. Online freight factoring company provides fast and efficient processing with minimum paper work. This way you save both time and money.
1st Commercial Credit is an online freight factoring company providing financial assistance to many owner operators, small and medium fleet businesses. The company is the largest of its kind providing varied asset based financial services such as equipment leasing, freight factoring, inventory financing and purchase order funding for new as well as old businesses.
1st Commercial Credit is expert in judging the capacity of your business and the long haul charges according to it. The company will provide funding for the fuel, maintenance, repair and other related charges of the trucks being used. This will avoid taking loans for such issues by the small businesses and owner operators. With the factoring and financial services by 1st Commercial Credit, the truckers will not suffer loss when the payment is delayed by the shippers.
1st Commercial Credit doesn’t require any financials and provides the factoring facility at a very affordable rate of 1.59% for 30 days for all sized trucking companies. The company provides free credit checks and facilitates the credit checking with in 15 minutes for new loads. There are no administration charges and application fees when you transact with 1st Commercial Credit. Broker and customer references are also provided on request. The initial funding is set up by the company in just 3 to 5 working days. The company would provide same day funding to the shippers and brokers who are already credit approved. Containerized freight and Intermodal hauling is also factored by the company.
Thus we see that 1st Commercial Credit is the company that knows in and out of the trucking industry and can assist in providing cash flow to your business instantly. Your long stuck freight bills can now be cleared within 24 hours and you can also indulge to haul more loads with increased cash flow. The factoring service of this company can be availed for businesses with just 1 truck to the one with more than 2000 trucks. The factoring amount per month ranges from $5000 to $10 million.
Quick Transport Solutions
QuickTSI offers its customers a valuable means of out-sourcing their transportation. QuickTSI can act as an extension of your company’s carrier logistic management program streamlining your work and lowering your business costs. QuickTSI expertise lies in ensuring your freight is delivered on-time, every time.
Our mission is to provide our customers with the highest level of service and professionalism. QuickTSI offers new solutions for today’s logistic challenges. At QuickTSI, we’re changing the way companies look at transportation with service that meets your needs today…and tomorrow.
Our corporate vision is to provide excellent service to our customers and make sure the truckload and LTL freight we are managing delivers on time. We always explore innovative ways to lower your freight costs. Our market focus is the larger volume full TL (TruckLoad) and LTL(Less Than Truckload) shipments. Our commitment is to maintain the highest possible standards of service in every aspect of our business.
Commitment to Quality: The quality of the service that Quick Transport Solutions offers is the key factor in our continued success. Our commitment to quality is reflected in our highly committed team, who serve customers that are looking for the highest quality in terms of relationships and requirements. We believe that, in a fast changing transportation industry, our customers need a safe pair of hands into which they can entrust their business. Our forward-looking and dynamic approach means that we never stand still. We constantly review and develop our services to match our customers’ needs and expectations.
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