Trucking is a tough business. The hours are long, the work is hard and the pay can be unpredictable. But for those who make it big in trucking, the rewards are nothing less than amazing. If you want to know how to make more money as a truck driver in any market, then this article is for you. With over a decade of experience working one on one with thousands of trucking companies, here at OTR Solutions we are one of the leaders among a sea of trucking factoring companies. We use our extensive background and knowledge to go into several tips below on how owner-operators can increase their income and how they can use freight factoring to their advantage. Thank you for reading!
What things can you do to start making more money in your trucking business?
As you are well aware, truck drivers are the backbone of our economy, and for many, it’s both a challenging and rewarding career. But what exactly does it take to make a good living as a truck driver? Here are some tips on how to maximize your income while on the road.
You’ll need to adapt to the needs of the market
The trucking industry is constantly changing, and in order to stay ahead of the curve you need to be willing to change with it. That means being open to new routes, new technologies, and new ways of doing things. It can be a challenge to keep up with the latest changes, but if you want to make serious money as a trucker you need to be willing to put in the work. By staying informed and keeping your finger on the pulse of the industry, you can be sure that you’re always positioned to take advantage of new opportunities and make big money as a trucker.
Lean into resources
You’re not alone in navigating the dynamic landscape of the trucking industry. At OTR Solutions, we’re here to provide you with cutting-edge resources tailored to your needs. One such invaluable tool is OTR Clutch, our exclusive banking solution designed specifically for truckers. From advanced mobile banking capabilities to rewards with every transaction, OTR Clutch is a testament to our commitment to enhancing the financial well-being of truck drivers. Lean on us for up-to-date industry insights and innovative solutions that can elevate your trucking business. Don’t hesitate to reach out and tap into our expertise today.
Establish a network of contacts
A trucker’s job is to transport freight from one location to another. In order to be successful, a trucker must have a good working knowledge of the roads they will be using and the regulations that govern trucking. They must also be able to establish a network of contacts, so that they can find steady work. They know the right people to call when they need a load, and they know how to negotiate favorable rates. They are able to earn a much better income than a trucker who doesn’t do this, so if you want to make big money as a trucker, you need to follow their example and establish your own network of contacts.
Increase your truck loads
If you want to know how to make more money as a truck driver, keep in mind that the more loads you have, the more money you make. There are a few ways to increase truckloads. One way is to talk to your dispatcher. They might be able to give you additional loads or put you on a different route that has more loads. Another way to increase truckloads is to join a load board. Load boards are online forums where truckers can find loads to haul. OTR Solutions is partnered with DAT Load Board to help carriers find better, higher-paying freight, with the nation’s largest and oldest load board. Increasing your truckloads is an essential way to make more money as a trucker so by following these tips, you’ll be on your way to big profits.
Aim for the highest rates
If you’re a trucker, you know that rates can vary widely depending on the load. Some loads are worth more than others, and it pays to know which ones will give you the biggest payouts. That’s why it’s important to keep an eye on the rates. The highest rates are often found on long-haul trips, so if you’re looking to make big money as a trucker, aim for the long hauls. You’ll also find that rates vary depending on the time of year. Rates are typically higher in the summer and fall when demand is higher, so if you’re looking to maximize your earnings, plan your trips accordingly. With a little planning and effort, you can make big money as a trucker by aiming for the highest rates.
Choose the highest-paying freight types
Some types of freight pay better than others, so it’s important to do your research and select loads that will give you the best return for your time and effort. Reefers, for example, tend to pay better than dry vans, and flatbeds often fetch a higher rate than either of these. Of course, rates can vary depending on the circumstances, so it’s always important to get a rate confirmation before committing to a load. But if you’re looking to maximize your earnings, choose your freight wisely and you’ll be on your way to a healthy bank balance in no time.
And Now for How to make BIG money in trucking: Trucker Factoring
All of the above tips will help you increase your profits, but if you want to know the number one tip for how to make big money in trucking, it’s this: use trucker factoring. A good trucker factoring company will offer competitive rates and terms, and will work with you to customize a solution that meets your needs. Take OTR as an example; we have a strong track record of working with truckers, and can provide references upon request. We will also provide you with the resources you need, including access to load boards and freight brokerages. That is what you should expect from a reputable factoring company – having all the resources you need to grow your business. But what is trucking factoring?
What is trucking factoring?
Trucker factoring is a type of financing that allows trucking companies to receive funding based on their unpaid invoices. Rather than waiting 30, 60, or 90 days for payment from a shipper, freight factoring companies will advance the trucking company a portion of the invoice amount, minus a small fee, right after delivery. This allows the trucking company to keep its business running smoothly, without worrying about cash flow.
In addition to providing much-needed funding, freight factoring can also help with invoicing and collections. Many companies offer online portals that allow trucking companies to submit invoices and track payments. This can save valuable time and hassle for both the trucking company and its shippers.
In short, factoring is a type of financing that allows trucking companies to sell their invoices at a discount in order to get paid sooner. This can be a useful solution for businesses that are struggling to manage their cash flow or need access to working capital.
How does it work?
When a trucking company delivers a shipment, they will send an invoice to the shipper. The trucker factoring company will then purchase the invoice from the trucking company, typically at a discount of around 10-15%. The factor will then collect payment from the shipper and remit the balance to the trucking company, minus their fee.
One crucial thing to look for in a trucker factoring solution, is to be sure that you go with a non-recourse company. OTR Solutions is a non-recourse factor. The key difference between non-recourse and traditional factoring is that with true non-recourse factoring, the factoring company accepts the loss for nonpayment and never transfers that debt onto the trucking company. With recourse factoring, the trucker is responsible for the debt if customers don’t pay.
What are the benefits of trucker factoring?
Truck drivers who are hauling freight for businesses often have to wait 30 days or more to get paid. This can put a strain on their cash flow and make it difficult to cover expenses like fuel and vehicle repairs. However, freight factoring can help to alleviate this financial burden. There are several benefits of using trucking factoring, including:
- Improved cash flow: rather than waiting 30-60 days for payment, businesses can receive funding within 24 hours of delivery;
- Flexible repayment terms: businesses can choose how much they want to borrow and when they want to repay the loan;
- No collateral: businesses do not need to put up any collateral in order to qualify for financing;
- Grow your business: by freeing up working capital, businesses can reinvest in their operations and expand their fleet.
When truckers factor their invoices, they sell them to a third-party company at a discount in exchange for immediate payment. This gives them the cash they need to cover expenses and keep their business running smoothly. In addition, freight factoring can help truckers to avoid expensive late fees and finance charges. As a result, it is an attractive option for many small trucking businesses.
How to get started with freight factoring
Now that you know how to make big money in trucking, you may be ready to get started with freight factoring. So, what do you need to do? The first step is contacting us so we can discuss your needs. At OTR Solutions, we would be happy to go over all of our services with you and answer any questions you may have. We pride ourselves on being the best in the industry, and we want nothing more than to help your business grow.
When you’re ready to give us a try, just fill this application form out, below, and we will be in touch with you shortly. Once your account is approved, you can start using our trucker factoring solution right away to get the cash flow you need in order to grow your business. Why wait? Apply today!