How to Start a Trucking Company in 2023 - OTR Solutions

How to Start a Trucking Company in 2023

Table of Contents

When entering any new market whether it’s your first time or your hundredth time – starting a new business comes with a variety of challenges – in fact, without the right steps for success, you can easily sink. 

In this guide, we’ll walk you through the entire process of starting a trucking company in 2023 and cover the legal setup and logistical setup, and even give you top tips to help you succeed in the realm of trucking.

Be warned: this might be a longer read than our normal blog posts. In an effort to help with navigating this post, we’ve broken it up into several sections (with subsections). You can navigate throughout this entire post by using the table of contents below, which is also accessible on the side of this guide. 

Happy reading and good luck with your new trucking company adventures!

Table of Contents

Creating a Business Plan

The first step and arguably the most important step is to create a business plan. A business plan is a document that outlines your entire business, including your pricing strategy, elevator pitch and even the business entity type. In this section, we’ll guide you through the steps that should be included in your business plan for your trucking company.

Equipment Types

The very first thing to do when drafting your trucking company’s business plan is to research equipment types. Which type of loads do you want to haul? It’s critical to get this step done first as later when it comes to licensing, you may need specific licensure.

Here are a few equipment types that may interest you:

  • Dry Van
  • Flat Bed
  • Reefer
  • Hot Shot (LTL)
  • Heavy Equipment
  • Automotive
  • Cargo/Sprinter Van

Pricing Strategy

The next step in your business plan should be your pricing strategy. Your pricing strategy should highlight how you’ll be profitable and the methods you’ll charge. It’s important to establish these strategies early on as it will save you time later when creating bank accounts and choosing a payment processor, or even a general payment method.

 

To create a pricing strategy you’ll need to ask yourself the following questions and document the answers within your business plan:

  • Will I charge by the mile? If so, how much?
  • Will I charge additional fees based on cargo size?
  • Will I load and unload products and goods? Will I use a lumper service?
  • Will I offer contractual discounts for long-term customers?
  • Will I offer any promotions on specific load types?

 

Next, be sure you can answer yes to this question:

Will my pricing strategy be able to cover: 

  • Insurance
  • Licensure
  • Fuel
  • Loans & Leases
  • Misc. Business Purchases (meals, document fees, hotels, etc.)
  • Personal Revenue 

 

You’re now on your way to a profitable and successful trucking business. Pricing is arguably the most important component of any business – and yours is no exception.

Bonus Tip
Ask around. You might be able to find out from other trucking companies how they charge and how they find good averages for payment. Try and keep your payment in line with what you learn. You can also hire a market research company to perform more in-depth and professional market research for you.

Marketing Plans

The next step is creating a marketing plan for your trucking company. Marketing your company will ensure two things:

  1. You have customers 
  2. You have repeat customers 

 

There are a few tips to market your business and you should utilize these while creating your business plan:

  • Understand your competitors 
  • Understand various search terms that your target audience, or customers, are using to find trucking services like yours on search engines 
  • Create social media pages such as Twitter, Facebook & Linkedin 
    • Post frequent status updates with relevant content to your social media outlet 
  • Build a website with great information about your company and be sure to expand on all the freemasons why it’s the best trucking service around

 

Continuing with your marketing plan, you’ll want to answer the following questions:

  • Will I use social media? If so, which outlets?
  • Will I build a website? 
  • Do I have funds to run paid advertising campaigns on search engines or other marketing outlets?

Bonus Tip
A lot of truckers that start companies see great success in utilizing YouTube and other video-sharing platforms to document their journey.

SMART Goals

This next step is completely optional, however, it will help you in the long run by keeping you accountable for your trucking company’s growth. 

 

“SMART goals” is short for “Specific, Measurable, Achievable, Relevant, Time-bound” goals. 

 

Here are a few examples of SMART goals to set as a new trucking company:

  • In 3 months, I would like to have 3 regular clients
    • I will achieve this by running various social media advertising campaigns
  • In 2 years I would like to hire 3 employees to help run loads
    • I will achieve this by running aggressive advertising campaigns on Linkedin to find new clients which will give me the capital to hire more

 

Think of 5-6 SMART goals and write them down on your company’s business plan – be sure that they are achievable and restricted by time – restricting by time helps you be accountable for steps you take to reach these goals – it acts as a reward for when you finally hit that sweet goal you’ve been working so hard for.

Choosing Your Business Entity

Next, we must choose a business entity and document it. If you are unaware of what a business entity is, a business entity is the ownership and operating type your company will be. For example, you’ve likely heard of an LLC or sole proprietorship – these two are great to start out with.

 

We won’t spend too much time covering these but we will give you a great idea of the best to start with.

 

List of the most common business entities for new trucking companies:

  • Sole proprietorship
  • Partnership
  • LLC
  • Corporation 


If this is your first time starting a business then we strongly recommend that you start with a sole proprietorship or form an LLC. Don’t worry if you are unfamiliar with these two, we’ll cover each of them in more depth next.

Sole Proprietorship

A sole proprietorship is when a business is owned by one person and one person only (you!). A sole proprietorship is a great option for those looking to start a trucking company by themselves and quickly. 

 

It is important to know that sole proprietorships carry a big caveat for some and it is that personal and business are not separate. You are reliable and responsible for your business’s assets as your own. 

 

That said, sole proprietorship has some really great advantages over other operating types, as well as some disadvantages:

 

Advantages:

  • Easier to set up
  • Lower costs to maintain, start and operate 
  • More tax deductions 
  • Much easier exiting process

 

Disadvantages:

  • More liability
  • Limited resources
  • Difficulty raising capital 

Partnership

A partnership is similar to a sole proprietorship in many ways. A partnership would apply to anyone starting a business and wanting to start it with someone else – meaning that there is a 50/50 split between you and your partner for all business actions. The separating difference between a sole proprietorship and a partnership is that instead of having business assets as your own personal liability, you’re now sharing business assets in a 50/50 split. Meaning, you’re both legally liable for business assets in the same split.

 

A partnership is ideal for anyone who wants to start a business with a friend, family member or general partner. 

 

It’s important to know that there are a few advantages and disadvantages to starting a partnership and here are the top ones you should consider:

 

Advantages:

  • More capital is available with more partners 
  • Much easier to change your legal structure later on, if you wish 
  • You can have more than one partner, which makes exiting the company easier if you decide to do so later on
  • There is limited external regulation
  • You have great borrowing power to get more capital investments 

 

Disadvantages:

  • The structure is expensive to start
  • Liability split is hard
  • Two heads instead of one company can lead to forced decisions
  • If a partner leaves, you’re stuck with the liability of the partner that left

LLC

An LLC, also known as a limited liability company, is a mixture between owners, partners and shareholders, that limits each of their personal liabilities while being a partner. LLCs also have several tax benefits to shareholders, partners and owners. 

 

LLCs were established to give business owners the same protection from personal liability as corporations, while also allowing them to report earnings and losses on their personal tax returns.

 

Advantages:

  • Personal liability protection
  • Pass-through taxation
  • Flexibility in management and structure
  • Easy to set up and maintain
  • Potential for reduced self-employment taxes:

 

Disadvantages:

  • Limited life: 
  • Limited ability to raise capital
  • Complexity and expense of multiple-member management
  • Restrictions on business activities
  • Less prestige than a corporation

 

Overall, an LLC is a great choice for those looking to minimize liability while starting with multiple partners and investors.

Corporation

A corporation is a type of business that is owned by many shareholders. Shareholders own stock in the corporation, which represents a piece of ownership in the company. The shareholders elect a board of directors to make important decisions for the corporation. The board hires managers to run the day-to-day operations of the company.

 

Here are the advantages and disadvantages of a corporation vs. the other types of business entities:

 

Advantages:

  • Limited Liability
  • Ability to raise capital
  • Easier to expand business
  • Unlimited life span

 

Disadvantages:

  • More expensive and complex to set up and run
  • Subject to more government oversight and regulations
  • May be too overly prestigious for some business owners

 

Corporations also have multiple operating types to consider and those are:

 

C Corporation:

A C corporation is the most common type of corporation and is taxed separately from its shareholders. This means that the corporation pays taxes on its income, and then shareholders pay taxes on any dividends they receive from the corporation. C corporations can have an unlimited number of shareholders and can issue multiple classes of stock.

 

S Corporation:

An S corporation is similar to a C corporation, but it is taxed as a pass-through entity, meaning the company’s income is passed through to its shareholders and reported on their personal tax returns. S corporations are limited to no more than 100 shareholders and can only issue one class of stock.

 

B Corporation:

A B Corporation, also known as a benefit corporation, is a type of for-profit corporate entity that makes a positive impact on society, the environment and profit, as its legally defined goals.

 

Nonprofit Corporation:

A nonprofit corporation is a corporation that is organized for charitable, educational, religious, or other public benefit purposes, rather than for the benefit of its shareholders. Nonprofit corporations are typically tax-exempt and are required to use their profits to further their stated mission.

 

Close Corporation:

A close corporation is a type of corporation that typically has a small number of shareholders and is not publicly traded. Close corporations are often family-owned or closely held by a small group of individuals.

 

Professional Corporation: 

A professional corporation is a type of corporation that is owned and operated by licensed professionals such as doctors, lawyers, and accountants. These corporations are formed to provide professional services to the public and are subject to state regulation.

Choosing Your Business Name

The next critical step in your business plan is choosing a business name. If you’re wanting to start a trucking company chances are you’ve already done this step but in the event you haven’t we’ve got your back! 

 

Here are 10 tips for choosing the best trucking company name for you:

  • Keep it simple and easy to remember
      • A simple and memorable name will be easier for customers to remember and find your company.
  • Make it unique
      • A unique name will help you stand out from your competitors and make it easier for customers to find you.
  • Consider the location
      • If your trucking company operates in a specific region, consider incorporating the location into the name.
  • Think about the type of goods you transport
      • If you specialize in transporting certain types of goods, consider incorporating that into the name.
  • Use keywords
      • Incorporating keywords related to trucking or logistics into your name can help with SEO and online visibility.
  • Keep it catchy and easy to pronounce
      • A catchy and easy-to-pronounce name will be more memorable and easier for customers to say.
  • Consider the future 
      • As your business grows, your trucking company name should not limit you to only certain types of services or goods.
  • Avoid using numbers or hyphens
      • Using numbers or hyphens in a trucking company name can make it harder for customers to remember and find your business.
  • Check for domain availability
      • Before finalizing your trucking company name, check to see if the domain name is available for a website.
  •   Get feedback
    • Before finalizing your trucking company name, get feedback from friends, family and potential customers, to see if they like and remember it.

 

Once you’ve got the name of your company, change the title of your document to “Company Name Business Plan” and enjoy a sense of accomplishment and pride. 

 

Congratulations on creating your very first business plan! 

Now, you’re ready for the real fun, legal setup! 

Registering Your Business & Name

After you’ve chosen your business name it’s time to make that name a legal entity and claim ownership over it. It’s important to note that each state may have different requirements to register a business and as such, you should consult with a local attorney for the registration of your business name. 

 

If you’ve decided you don’t want to consult with an attorney, here’s the general process for registering your business and name:

  • Register your business name with your state government, which may require you to file articles of incorporation or a fictitious business name statement.
  • Obtain any necessary licenses and permits: In your case, you’ll need your commercial driver’s license.

 

To find the instructions for your state, simply Google, “DBA in STATE.” Your state’s website should have documentation on the process. 

 

Again, we cannot stress enough how important and better it is to use a local attorney.

Selecting Insurance

Once you’ve registered your business name, you’re ready to select insurance for your business. 

 

There are a few types of insurance to consider:

  • Liability (required)
  • Physical Damage
  • Cargo
  • Truck General Liability
  • Uninsured Motorist

 

Let’s dive into each of them!

Liability Insurance

Liability insurance for truckers is a type of insurance that provides coverage for damages or injuries that a trucker may cause to another person or property while operating their commercial vehicle. It typically includes two types of coverage: bodily injury liability and property damage liability.

 

Bodily injury liability coverage provides protection for medical expenses and lost wages for any person injured in an accident for which the trucker is at fault. Property damage liability coverage provides protection for repairs or replacement of any property damaged in an accident for which the trucker is at fault.

 

It’s worth noting that liability insurance only covers damages or injuries that you are responsible for and does not cover damages to your own vehicle or injuries to yourself. Additionally, liability insurance only covers damages or injuries that occur while you are on the job and does not cover any damages or injuries that occur outside of work.

 

Liability insurance is a legal requirement for commercial truck drivers operating under the jurisdiction of the Federal Motor Carrier Safety Administration (FMCSA) and failure to carry liability insurance can result in fines, penalties or even losing your commercial driver’s license

 

It is important for truckers to have liability insurance to protect themselves financially in case they cause an accident while on the job. Without liability insurance, truckers could be held liable for any damages or injuries they cause, which could result in significant financial losses.

Physical Damage Insurance

Physical damage insurance for truckers, also known as truck or commercial vehicle insurance, is a type of insurance that provides coverage for damages to a trucker’s own vehicle. It typically includes two types of coverage: collision coverage and comprehensive coverage.

 

Collision coverage provides protection for repairs or replacement of the trucker’s vehicle in the event of an accident, regardless of who is at fault. Comprehensive coverage provides protection for damages to the trucker’s vehicle caused by non-collision events such as theft, fire, or natural disasters.

 

Physical damage insurance is not legally required for commercial truck drivers, but it is highly recommended, as the cost of repairs or replacement of a commercial vehicle can be significant. Additionally, some trucking companies may require their drivers to have physical damage insurance as a condition of employment.

 

Physical damage insurance is an important type of insurance for truckers to have, as it can provide financial protection in case their vehicle is damaged or destroyed. Without physical damage insurance, truckers would be responsible for paying for repairs or replacement of their vehicle out of their own pocket.

Cargo Insurance

Cargo insurance for truckers is a type of insurance that provides coverage for damages or losses to the goods that a trucker is transporting. It typically covers damages or losses caused by events such as accidents, theft, fire, or natural disasters.

 

Cargo insurance is not legally required for commercial truck drivers, but it is highly recommended, as the cost of replacing or repairing damaged goods can be significant. Additionally, some shippers or receivers may require their trucking partners to have cargo insurance as a condition of doing business.

 

Cargo insurance is an important type of insurance for truckers to have, as it can provide financial protection in case the goods they are transporting are damaged or lost. Without cargo insurance, truckers would be responsible for paying for the cost of replacing or repairing the damaged goods out of their own pocket.

 

Cargo insurance policies can vary widely in terms of the types of coverage they provide and the limits of liability, so it is important for truckers to carefully review their policies and understand what is covered and what is not.

Truck General Liability Insurance

Truck general liability insurance, also known as commercial general liability insurance, is a type of insurance that provides coverage for third-party damages or injuries that a trucker may cause while operating their commercial vehicle. It typically covers damages or injuries caused by things such as accidents, slip and fall incidents, and property damage.

 

Truck general liability insurance is not legally required for commercial truck drivers, but it is highly recommended, as the cost of defending against and settling third-party claims can be significant. Additionally, some trucking companies may require their drivers to have truck general liability insurance as a condition of employment.

 

Truck general liability insurance can provide financial protection for truckers in case they are held liable for damages or injuries caused by their commercial vehicle. Without truck general liability insurance, truckers would be responsible for paying for the cost of defending against and settling third-party claims out of their own pocket.

 

It is important for truckers to have truck general liability insurance as it can protect them financially if they are held liable for damages or injuries caused by their commercial vehicle. It also helps to protect their reputation by ensuring that they can properly handle and settle claims made against them

 

It is important to note that Truck general liability insurance is different from commercial automobile liability insurance, which is a legal requirement to cover damages or injuries caused to others while operating a commercial vehicle. Truck general liability insurance is broader, it covers non-auto-related claims such as product liability, completed operations, and premises liability.

Uninsured Motorist Insurance

Uninsured motorist insurance for truckers is a type of insurance that provides coverage for damages or injuries that a trucker may suffer in an accident caused by a driver who does not have insurance. It typically covers medical expenses and lost wages for the trucker and any passengers in their vehicle.

 

Uninsured motorist insurance is not legally required for commercial truck drivers, but it is highly recommended, as accidents caused by uninsured drivers can result in significant financial losses for the victim. Additionally, some trucking companies may require their drivers to have uninsured motorist insurance as a condition of employment.

 

Uninsured motorist insurance can provide financial protection for truckers in case they are involved in an accident caused by a driver who does not have insurance. Without uninsured motorist insurance, truckers would be responsible for paying for their own medical expenses and lost wages out of their own pocket.

 

It is important for truckers to have uninsured motorist insurance as it can protect them financially if they are involved in an accident caused by a driver who does not have insurance. It also provides peace of mind knowing that they are covered in case of an accident with an uninsured driver.

 

It’s worth noting that in some states, Uninsured motorist coverage and Underinsured motorist coverage are combined in one policy,

Creating Your Businesses Bank Account

An important part of any business is the ability to get paid and store those funds to allow for more business expenses. Starting a business bank account is relatively easy and doesn’t typically require anything out of the ordinary.

 

Creating a business bank account for a trucking company typically involves the following steps:

 

Choose a bank

Research different banks and compare their fees, services, and location to find the best option for your trucking company.

 

Gather necessary documents

You will typically need to provide documentation such as your business license, articles of incorporation, and employer identification number (EIN) to open a business bank account.

 

Fill out an application

Fill out an application for a business bank account, which can usually be done online or in person at a bank branch.

 

Fund the account

Deposit funds into the new business bank account to activate it.

 

Set up online banking

Set up online banking for your business bank account, which will allow you to check your account balance, view transactions, and make payments online.

 

Obtain a debit card

Request a debit card linked to your business bank account, which will allow you to make purchases and withdraw cash from ATMs.

 

You should also know when researching banks that some banks may have partner programs and particular benefits for trucking companies such as cash-back fuel cards or even capital investment loans for trucking companies.

Licenses & Operating Authorities

When starting your trucking company, you’ll need a few more items before you can hit the road (legally). You’ll need to ensure that you have your licensure in order and all of your operating authorities. 

 

You should have the following information on hand for each of these steps (as to not be redundant when we list them):

  • Employee Identification Number (EIN)
  • Insurance Numbers 
  • Emergency Contact Information
  • Personal Information (Social, Phone Number, etc.)

 

Let’s dive into what you’ll need.

DOT

A DOT number, or Department of Transportation number, is a unique identifier assigned to commercial vehicles by the Federal Motor Carrier Safety Administration (FMCSA). 

 

To obtain a DOT number for your new trucking company, you will need to complete the following steps:

  1. Obtain your Employer Identification Number (EIN) from the IRS
  2.  Obtain your company’s U.S. DOT number by filling out the appropriate forms on the FMCSA website.
  3. Submit the form along with the necessary documentation, such as proof of registration and insurance, to the FMCSA.
  4. Pass a safety audit and comply with state and government safety regulations, such as maintaining proper insurance coverage, conducting regular vehicle inspections and maintaining driver qualification files.

 

It’s pretty simple! Once you have your DOT number, you can move on to the other licensure requirements and operating authorities.

BOC-3 Form

The BOC-3 form, also known as the Designation of Process Agents, is a form required by the Federal Motor Carrier Safety Administration (FMCSA) for any company that operates commercial motor vehicles in interstate commerce. The BOC-3 form is used to appoint a process agent in each state where the carrier operates. The process agent will accept legal documents on behalf of the carrier in case of legal action.

 

In order to acquire a BOC-3 form for your trucking business, follow the below steps:

  1. Identify a process agent in every state where your company plans to operate. This can be done by searching for process agent services online or consulting a lawyer.
  2. Fill out the BOC-3 form, which can be found on the FMCSA website, and have it signed by the selected process agents.
  3. Submit the completed BOC-3 form along with the required fees to the FMCSA.

Motor Carrier Authority

A Motor Carrier Authority, also known as an Operating Authority, is a permit issued by the Federal Motor Carrier Safety Administration (FMCSA) that allows a trucking company to operate as a for-hire carrier across state lines. 

 

To obtain a Motor Carrier Authority for your trucking company, you will need to do the following:

  1. File for your Operating Authority (MC Number) by filling out the forms on the FMCSA website.
  2. Obtain the required level of insurance as per FMCSA rules and regulations.
  3. Pay the necessary fees for obtaining the authority.
    1. Permanent Authority: $300.00
    2. Notice of Name Change: $14.00
    3. Reinstate Authority: $80.00

 

It’s worth noting that obtaining a Motor Carrier Authority is a complex and time-consuming process, and it’s recommended that you consult with a lawyer or business consultant with experience in the trucking industry to ensure that you are in compliance with all regulations.

Unified Carrier Registration

The Unified Carrier Registration (UCR) is a program that requires commercial motor carriers, freight forwarders, and leasing companies operating in interstate commerce to register their business and pay fees based on the size of their fleet. 

 

To obtain a Unified Carrier Registration for your trucking company, you’ll need to follow a few simple steps:

  1.  Determine the number of commercial motor vehicles you operate or expect to operate in the current year, you will need to pay a fee based on the size of your fleet.
  2. Fill out the UCR application and submit it along with the necessary documentation and fees to the state agency that is designated as the UCR Plan Administrator for your state.


You should also know that the UCR registration has to be renewed annually, and the fees are based on the number of commercial motor vehicles in the fleet, and it’s important to be aware of the deadlines to avoid penalties. Also, you should be aware that some states have their own registration programs, and you may need to register with them as well. You can find more on the fee pricing here in their legal jargon.

International Fuel Tax Agreement

The International Fuel Tax Agreement (IFTA) is an agreement between 48 states and 10 Canadian provinces that allows truckers to report and pay fuel taxes for all vehicles that operate in multiple jurisdictions. 

 

Obtaining your IFTA is much easier than the others on this list. 

 

Here’s how to get your ITFA:

  1. Apply for an IFTA license by filling out the appropriate form and submitting it to the state agency that handles IFTA licenses.
  2. You will need to pay the necessary fees and provide proof of insurance to obtain the IFTA license.

 

Once you have the IFTA license, you will need to file quarterly fuel tax reports, which will be due by the last day of the month following the end of each quarter.

 

Also, keep in mind that you will need to have an IFTA license for each qualified motor vehicle that you operate and you will need to renew it annually. Some states have different forms and deadlines for IFTA, so it’s important to check with your state’s local website.

Standard Carrier Alpha Code

A Standard Carrier Alpha Code (SCAC) is a unique code assigned to a motor carrier by the National Motor Freight Traffic Association (NMFTA). It is used to identify the carrier when shipping goods and is required for participating in many government and industry programs. 

 

SCACs are also used by government agencies such as the Federal Motor Carrier Safety Administration (FMCSA) and the United States Department of Transportation (USDOT) to identify carriers when conducting safety audits and compliance reviews.

 

In order to get a Standard Carrier Alpha Code (SCAC) for your trucking company, you’ll need to do the following:

  1. Apply for a SCAC by submitting the application form to the National Motor Freight Traffic Association (NMFTA).
  2. Pay the required fees to acquire the SCAC.
    1. The application fee is $84 (As of 1/13/2022)

 

Please also note that you’ll have to renew your SCAC annually and pay the necessary fees to maintain it.

Navigating Load Boards

A load board is an online platform that connects trucking companies, freight brokers, and shippers to find and exchange information about available loads and trucks. By using a load board, trucking companies can find new business and fill empty capacity, while shippers can find reliable carriers to transport their goods. Here are the steps on how to use a load board:

 

Step 1: Create an account

The first step to using a load board is to create an account. This can usually be done on the load board’s website. You will need to provide some basic information such as your company name, contact information, and details about your fleet of trucks. Once your account is created, you will be able to log in to the load board.

 

Step 2: Search for available loads

Once you are logged in, you can start searching for available loads. Most load boards have a search function that allows you to filter loads based on your preferences such as location, type of cargo, and pay rate. You can also browse through a list of all available loads. When you find a load that you’re interested in, you can view more details such as the pickup and delivery locations, weight, and dimensions of the cargo.

 

Step 3: Contact the shipper or broker

If you find a load that you would like to haul, the next step is to contact the shipper or broker who posted the load. This can usually be done by clicking on a button or link on the load details page. This will open a form that you can fill out with your contact information, and any additional details about your truck or availability.

 

Step 4: Negotiate the rate

Once the shipper or broker receives your message, they will review your information and contact you if they are interested in working with you. This is when you can negotiate the rate for the load. Make sure you are clear on the details of the load, and what is expected of you. It’s important to have your insurance and authority information ready, as some shippers or brokers may require it.

 

Step 5: Confirm the details and dispatch

Once you have agreed on the rate and details of the load, you will need to confirm the details and arrange for dispatch. This may involve providing the shipper or broker with your bill of lading, proof of insurance, and other required documents. Make sure you have all the details and paperwork in order before you hit the road.

 

Step 6: Track the load

Once the load is dispatched, you can track it on the load board, or through other means provided by the shipper or broker. This will allow you to stay informed about the status of the load and make any necessary adjustments to your schedule.

 

Step 7: Get paid

After the load is delivered, the shipper or broker will pay you according to the terms agreed upon. This can be done through electronic funds transfer (EFT) or by check. Make sure you keep all the paperwork and receipts in case there are any disputes.

 

Using a load board can help trucking companies find new business and fill empty capacity, while shippers can find reliable carriers to transport their goods. It’s important to be organized, communicate clearly, and have all necessary paperwork in order when using a load board. With a little bit of patience, you’ll be able to find loads that are a good fit for your company, and get paid for your services.

DAT One: Load Board

If you’d like our recommendations on load boards then look no further than our partners over at DAT with their DAT One load board services. 

DAT ONE

Factoring Invoices

Freight invoice factoring is a financial service in which a factoring company advances money to a trucking or transportation company based on their outstanding freight invoices. The trucking company then sells their unpaid invoices to the factoring company at a discount and the factoring company will collect payment from the trucking company’s customers.

 

This type of financing is particularly useful for trucking and transportation companies that experience cash flow problems due to the long lag between the time they deliver their goods and the time they receive payment from their customers. With freight invoice factoring, trucking companies can receive an advance on their unpaid invoices, which can help them cover expenses such as fuel, maintenance, and payroll.


Freight invoice factoring is also a flexible option as trucking companies can sell their invoices to the factoring company on an ongoing basis, as they generate new invoices. This allows them to have a constant source of working capital to fund their operations.

Why You Should Factor Invoices

There are several reasons why a trucking company might choose to factor their freight invoices:

 

Improved Cash Flow

Factoring allows trucking companies to receive an advance on their unpaid invoices, which can help them cover expenses such as fuel, maintenance, and payroll. This can be especially important for trucking companies that experience cash flow problems due to the long lag between the time they deliver their goods and the time they receive payment from their customers.

 

Increased Working Capital

By factoring their invoices, trucking companies can have access to a constant source of working capital to fund their operations. This can help them take on larger loads and grow their business.

 

Flexibility

Factoring can be done on an ongoing basis, as trucking companies generate new invoices. This allows them to have a flexible source of funding that can adapt to their changing needs.

 

Credit Risk Mitigation

Factoring companies usually check the creditworthiness of a trucking company’s customers before advancing the money. This can help trucking companies to avoid the risk of non-payment from customers.

 

Reduced Administrative Burden

Factoring companies handle the task of collecting payment from customers, which can free up trucking companies’ time and resources to focus on their core business operations.

 

Cost-Effective

Freight invoice factoring can be a more cost-effective option than traditional forms of financing such as bank loans, as it does not require collateral or a good credit score, and the fees are based on a small percentage of the invoice amount.

 

Factoring freight invoices can provide trucking companies with improved cash flow, increased working capital, flexibility, reduced administrative burden, credit risk mitigation and cost-effectiveness. It can be a viable option for trucking companies looking to improve their financial situation and grow their business.

Recourse Vs. Non-Recourse

Recourse and non-recourse factoring are two different types of freight invoice factoring. The main difference between the two is the level of risk assumed by the factoring company.

 

Recourse factoring is when the factoring company advances money to the trucking company based on their unpaid invoices and assumes the risk of non-payment from the trucking company’s customers. However, if a customer does not pay the invoice, the trucking company is obligated to buy back the invoice from the factoring company or make good on the payment.

 

On the other hand, non-recourse factoring is when the factoring company advances money to the trucking company based on their unpaid invoices and assumes the full risk of non-payment from the trucking company’s customers. In this case, if a customer does not pay an invoice, the trucking company is not liable and the factoring company bears the loss.

 

In terms of which is better, it depends on the trucking company’s specific needs and risk tolerance.

 

Recourse factoring may be a better option for trucking companies that have strong creditworthy customers and are confident in their ability to collect payment. This is because recourse factoring typically has lower fees and offers more flexible terms than non-recourse factoring.

 

On the other hand, non-recourse factoring may be a better option for trucking companies that have less creditworthy customers or are concerned about the risk of non-payment. This is because non-recourse factoring provides greater protection for the trucking company in case of non-payment and usually has higher fees than recourse factoring.


At OTR Solutions, we offer a true non-recourse factoring solution that’s designed to help you minimize risk from non paying customers. In times like these, it’s important to ensure that nothing can interfere with your cash flow.

Factor with OTR Solutions

Quick Pay vs. Factoring Solutions

Quick Pay is a service that allows trucking companies to get paid for their deliveries quickly, typically within 24 hours. This can be beneficial for trucking companies that need to cover their expenses quickly, such as paying for fuel, maintenance, and employee salaries. 

 

However, Quick Pay does come with some drawbacks. One of the main drawbacks is that it can be expensive, as trucking companies may have to pay a fee for each Quick Pay transaction. Additionally, the funds that are available through Quick Pay are limited, so trucking companies may not be able to get all of the funds that they need to cover their expenses.

 

Despite the benefits of Quick Pay, Freight Factoring Solutions is generally considered to be the better option for trucking companies. This is because freight factoring can provide trucking companies with a more stable and consistent source of funding. Not only that, but freight factoring can be less expensive than Quick Pay, as trucking companies may only have to pay a small percentage of their invoices as a fee. And another thing, freight factoring can also help trucking companies improve their credit score, as the factoring company may report the trucking company’s payments to credit bureaus.

 

In summary, if you’re deciding between Quick Pay and factoring, you should strongly consider a factoring company.

 

For more insight into Quick Pay vs. Factoring, please read see in depth comparison here.

Factoring with OTR Solutions

At OTR Solutions, we understand the unique challenges that trucking companies face when it comes to managing their cash flow.  Our true non-recourse freight factoring service is designed to meet the specific needs of trucking companies. 

 

One of the main benefits of working with OTR Solutions is our competitive rates. We offer some of the most competitive rates in the industry, which means you can get the funding you need without breaking the bank. 

 

Another advantage of working with OTR Solutions is our quick funding process. We understand that time is of the essence when it comes to managing your cash flow. That’s why we offer quick funding, within 24 hours, so you can get the funds you need as soon as possible.

 

Our team of experienced professionals work to better understand each of our clients’ unique business models in order to provide them with the right funding they need to keep their operations running smoothly.

 

And, if a credit score needs improvement, we have it covered, as we report all payments to credit bureaus. This can be helpful for trucking companies that want to secure access to more funding options in the future.

Factor With OTR Solutions

Tips For Success

Congratulations again on launching your new trucking company! In this section we’ll give you our tips for long-term success in the trucking industry as an owner operator.

Building Long Term Relationships

Building long-term relationships is crucial for any business, and the trucking industry is no exception. As an owner-operator, developing strong, long-lasting relationships with your customers can provide a number of benefits that can help you grow your business and increase your revenue.

 

One of the biggest benefits of building long-term relationships with your customers is the stability and predictability it can bring to your business. When you have a loyal customer base, you can rely on a steady stream of work and revenue, which can help you plan for the future and make better business decisions. Additionally, having long-term customers can also help you negotiate better rates, as they will be more likely to agree to your terms and conditions since they trust and rely on your services.

 

Here are some tips to help you build and maintain strong relationships with your customers:

 

Communicate effectively

Good communication is key to building trust and understanding with your customers. Make sure you are responsive to their needs, and keep them informed about any changes or delays that may affect their shipments.

 

Be reliable

Nothing builds trust faster than being reliable. Make sure you deliver on your promises and follow through on your commitments. This will help you earn your customers’ trust and confidence.

 

Provide excellent customer service

Treat your customers with respect and always go above and beyond to meet their needs. This will help you build a reputation for providing outstanding customer service, which can help attract new customers and retain existing ones.

 

Be flexible

Be open to working with your customers on different terms, such as payment and delivery options. This can help you accommodate their unique needs and build trust and loyalty.

 

Use technology

Utilize technology to automate processes, such as tracking and invoicing, which can help you save time and money while providing your customers with more accurate and up-to-date information.

 

Understand their business

Take the time to understand your customers’ businesses, their goals and challenges. This will help you tailor your services to meet their needs and anticipate any potential problems.

 

Build a personal relationship: Building a personal relationship with your customers is essential. This can be achieved by visiting them in person, sending them a personalized note or remembering their birthday.

 

Follow up regularly

Keep in touch with your customers regularly to check on how they are doing and to see if there is anything you can do to help. This will help you maintain your relationship and resolve any issues that may arise.

 

Solve problems quickly

When problems do arise, work quickly to resolve them. This will help you maintain your customers’ trust and confidence in your business.

 

Continuously improve

Continuously look for ways to improve your services and processes. This will help you stay competitive and meet the changing needs of your customers.

The Importance of a Dedicated Support Team

Great back office support is essential for building strong relationships with trucking customers. By providing quality customer service, responding to inquiries quickly, and keeping accurate records of all transactions, truckers can ensure that their customers feel respected and taken care of. Furthermore, having an efficient back office system in place can help truckers stay organized and save valuable time by streamlining the order management process. Investing in quality back office technology can pay off in the long run by not only improving customer satisfaction, but also improving efficiency and profitability.

Secure Your Own Back Office Support, Today!

Financing Trucks & Trailers

Owning your own trucks and trailers can save you a lot of money in the long run but there is a lot of up front money required to purchase these things. Fortunately there are many financing options out there to help you finance your truck and trailers. 

 

10 Tips for Financing:

 

Research financing options

Look into different financing options, such as traditional bank loans, equipment financing, and leasing. A company such as Prefi would work great for various financing options.

 

Understand your credit score

Your credit score will play a big role in determining what kind of financing options are available to you. Make sure you understand your credit score and take steps to improve it, if necessary.

 

Look for government financing programs

Some government programs offer financing options for small businesses, including trucking companies.

 

Shop around for the best rates

Compare different financing options to find the best rates and terms for your business.

 

Understand the total cost of ownership

Be aware of the total cost of owning a semi-truck, including maintenance, fuel, and insurance costs.

 

Get pre-approved

Before you start shopping for a semi-truck, get pre-approved for financing. This can help you narrow down your options and make the process smoother.

 

Consider a used truck and trailer

Buying a used semi-truck and trailer can be a more affordable option, and financing options are available for used trucks as well.

 

Negotiate with the seller

You may be able to negotiate financing terms directly with the seller of the semi-truck and trailer.

 

Look into tax benefits

There may be tax benefits available for financing a semi-truck, such as Section 179 of the IRS tax code.

 

Look for financing options that allow for flexibility

Some financing options may allow you to make additional payments or pay off the loan early, which can save you money in the long run.

 

Get Freedom Leasing through OTR Solutions

Freedom Leasing specializes in road-ready dry vans, flatbeds, reefers, and storage trailers. Like OTR Solutions, Freedom Leasing takes pride in helping carriers grow. The people at Freedom Leasing will listen to your needs and find the best solutions for your business

Become a Partner

Hire an Accountant

Hiring an accountant for your trucking company can provide a number of benefits that can help you manage your finances, reduce your tax burden, and make better business decisions. 

 

Here are a few reasons why your trucking company should consider hiring an accountant:

 

Expertise in financial management

An accountant has the expertise and knowledge to help you manage your finances, including creating financial statements, budgeting, and cash flow management.

 

Tax compliance and planning

An accountant can help you navigate the complex tax laws and regulations that apply to trucking companies, and help you plan your tax strategy to minimize your tax burden.

 

Compliance with industry regulations

An accountant can help you ensure that your trucking company is compliant with all relevant industry regulations, including IFTA, IRP, and UCR.

 

Business advice

An accountant can provide valuable business advice and insights that can help you make better business decisions, such as expanding your fleet, hiring additional staff, or entering new markets.

 

Insurance and legal matters

An accountant can help you navigate the insurance and legal requirements related to your trucking company and help you avoid any potential problems

 

Improving cash flow

An accountant can help you identify areas where you can improve your cash flow, such as by reducing expenses, improving billing

Delegating

Delegating is a crucial part to any businesses long-term success. By placing some of the responsibilities into others hands, you’ll be free to do other important tasks such as marketing your business and focusing on sales. 

 

Here are some tips to help you delegate responsibilities as an owner operator of your trucking company:

 

Prioritize tasks

Identify the most important tasks that need to be completed and delegate them accordingly.

 

Assign tasks based on strengths

Assign tasks to team members based on their strengths and areas of expertise.

 

Provide clear instructions

Make sure that the instructions for each task are clear and easy to understand.

 

Set deadlines

Set realistic deadlines for each task and make sure that team members are aware of them.

 

Monitor progress

Regularly check in on the progress of each task to ensure that it is on track.

 

Provide feedback

Provide constructive feedback to team members on their performance to help them improve.

 

Communicate regularly

Maintain open lines of communication with team members to ensure that everyone is on the same page.

 

Be available for support

Be available to provide support and answer questions when needed.

 

Encourage independence

Encourage team members to take ownership of their tasks and make decisions on their own.

 

Reward success 

Recognize and reward team members for their hard work and successes.

Hiring Additional Truckers

Hiring additional truckers for your trucking company can provide a number of benefits that can help you grow your business, increase your revenue, and improve your bottom line. 

 

Here are some of the benefits of hiring additional truckers:

 

Increased capacity

With additional truckers, you can take on more loads and increase your capacity to transport goods. This can help you grow your business and increase your revenue.

 

Improved efficiency

With more truckers, you can distribute the workload more evenly, which can help you improve your efficiency and reduce downtime.

 

Improved customer service

With more truckers, you can provide better and more reliable service to your customers, which can help you build a loyal customer base and attract new customers.

 

Improved safety

With more truckers, you can reduce the risk of accidents and injuries by distributing the workload more evenly.

 

Improved flexibility

With more truckers, you can be more flexible in your operations and respond more quickly to changing market conditions.

 

Here are a few tips to help with the hiring process:

 

Develop a clear job description

Create a detailed job description that includes the qualifications, responsibilities, and expectations for the position. This will help you attract the right candidates and ensure that they understand the job requirements.

 

Screen applicants thoroughly

Screen applicants thoroughly by reviewing resumes, conducting interviews, and checking references. This will help you identify the best candidates for the job.

 

Check driving records

Always check the driving records of potential hires to ensure that they have a clean record and are qualified to operate a commercial vehicle.

 

Conduct background checks

Conduct background checks to verify the information provided by applicants and to ensure that they have a clean criminal history.

 

Provide training

Provide new hires with the training they need to perform their job safely and efficiently. This may include training on company policies and procedures, safety training, and training on how to operate specific equipment.

 

Offer competitive compensation

Offer competitive compensation packages to attract and retain the best truckers. This may include benefits such as health insurance, retirement plans, and paid time off.

 

Promote a positive work culture

Promote a positive work culture that values safety, teamwork, and a commitment to excellence. This will help attract and retain the best truckers.

 

Invest in technology

Invest in technology that can help truckers do their job more efficiently and safely, such as GPS tracking and communication systems.

 

Communicate clearly

Communicate clearly with truckers to ensure that they understand their job responsibilities and how they can contribute to the success of the company.

 

Foster a team spirit

Foster a team spirit!

 

Hiring new truckers for your company is a great sign of growth and it’s a well deserved celebration, so make sure to take plenty of time to celebrate your success!

Tools

Finding the right tools to help you succeed with your trucking business can be tricky as it varies depending on what you’re hauling or how you’re operating. 

 

At OTR Solutions we’ve built tools that work perfectly for every owner operator to help them truly succeed with their cash flow ventures. 

 

Next, let’s cover the tools OTR Solutions has to help you with your trucking company.

Marketing Your Business with ELEVATE

ELEVATE is our all-in-one brand building solution designed for owner-operators. Our brand builder enables you to have a quick and easy way to retain customers and build relationships through online marketing. 

 

Here’s a few reasons why you should consider building your own trucking website with ELEVATE:

 

Increased visibility

Your trucking company’s dedicated website can help increase your visibility and reach a wider audience. By creating a website, you can reach potential customers that you may not have been able to reach through traditional marketing methods.

 

Cost-effective marketing

A website can be a cost-effective way to market your trucking company. Unlike traditional marketing methods, a website can be created and maintained at a relatively low cost.

 

Build your brand

A website can help you build your brand and establish your company as a reputable and professional organization. By having a website, you can create a consistent image and message that can help you stand out in the competitive trucking industry.

 

Provide information

Your trucking company’s website can provide potential customers with information about your trucking company and the services you offer. This can help them understand your capabilities and make an informed decision when choosing a trucking company.

 

Improve customer service

Your trucking company’s website can improve customer service by providing customers with information about your company, tracking their shipments and providing access to invoices and other important documents.

 

Generate leads

A website can be a powerful tool for generating leads. By providing potential customers with the information they need, you can encourage them to contact you for more information or to request a quote.

 

Track your performance

With analytics tools and tracking software, you can track your website’s performance and get insights into how customers are interacting with your site. You can use this information to improve your website and increase conversions.

 

Create an online presence

A website can help you establish an online presence and make your company more accessible to potential customers. With a website, you can reach customers all over the world.

 

Facilitate online booking

Your website can facilitate online booking, allowing customers to book and schedule shipments easily and efficiently. This can save time for both your customers and your trucking company, and can also help you to manage your schedule more effectively.

 

Provide online support

A website can provide online support, such as a FAQ section, customer service chat, and contact forms, which can help you to quickly and efficiently respond to customer inquiries.

 

Create a sense of trust

Having a professional and well-designed website can create a sense of trust with potential customers. It demonstrates that your trucking company is professional, reliable and trustworthy.

 

Keep customers informed

Your website can be used to keep customers informed about the latest news and developments in your trucking company. This can include updates on new services, promotions, and industry news.

 

Showcase your fleet

A website can be used to showcase your fleet of trucks, trailers and other equipment. This can help potential customers understand the capabilities of your trucking company and make an informed decision when choosing a trucking company.

 

Optimize for search engines

Your website can be optimized for search engines to improve its visibility and ranking. This can help you to reach a wider audience and increase your visibility in search results.

 

In summary, having a dedicated website can be a valuable asset for your trucking company. It can help you increase your visibility, reach a wider audience, and improve your customer service. It can also help you to generate leads and track your performance. Furthermore, it can help you to establish an online presence, facilitate online booking, provide online support and showcase your fleet. 

 

With a website, you can improve your competitive edge and help your trucking company to grow and succeed.

Create your website with ELEVATE

Fuel Advances

Truckers should use fuel advances for a number of reasons. Here are a few:

 

Immediate access to funds

Fuel advances provide truckers with immediate access to funds that they can use to purchase fuel and other necessary expenses. This can be particularly beneficial for truckers who are operating on tight budgets or who have unexpected expenses.

 

Avoid credit card debt

Fuel advances can help truckers avoid the high interest rates and fees associated with credit card debt. This can help truckers save money in the long run and improve their overall financial stability.

 

Improve cash flow

By giving truckers access to a portion of the money they’ve already earned from hauling loads, fuel advances can provide much-needed liquidity as well as financial security in an otherwise unpredictable industry. 

 

Avoid fuel card fees

Some fuel companies charge fees for using their fuel cards. Fuel advances can help truckers avoid these fees and save money.

 

Flexibility

With fuel advances, truckers no longer need to worry about upfront costs for fuel and other expenses associated with hitting the road. This means that they are free to take on new opportunities without worrying about how they will pay for them beforehand. 

 

Avoid penalties

Some trucking companies may charge penalties for late fuel payments, fuel advances can help truckers avoid these penalties by providing them with the funds they need to pay for fuel on time.

 

No credit check

Fuel advances are usually not based on credit score, which makes them accessible to truckers with bad credit.

 

Avoid carrying cash

Fuel advances can help truckers avoid carrying cash, which can be risky.

 

With over 8,000 truck stops nationwide the OTR  Fuel Card is the best fuel card for truckers. Get your OTR Fuel Card today!

 

Fuel cards are an excellent way to scale cash flow, by minimizing the need to worry about cost of fuel and the annoyance that comes with trip/fuel planning.

Apply Now

Lumper Fee Advances

You should consider using lumper fee advances and for many good reasons! Take every element from fuel advances and apply them here. The largest reason for advancing lumper fees with OTR Solutions is to avoid carrying cash or having an interrupted cash flow. Lumper fees can vary so it’s important to be covered in every aspect to protect your vital cash flow.

Lumper Fee Advances

OTR Solutions is Here To Help!

At OTR Solutions we understand the owner operator mindset of protecting your cash flow and finding valuable services to help you grow your business while earning the most money possible. We offer the best solutions for truckers to scale and keep their passion alive. 

 

We’ve been around for a long time and have been helping truckers nationwide the entire time. We’re partnered with over 100 top-level trucking partners to bring you innovative solutions and technology you need for success.

About OTR Solutions

Dedicated Back Office Support

At OTR Solutions, we understand the challenges that come with running a trucking company, and we are here to offer support in the form of dedicated back office services. 

 

Our team of experts can handle all of the administrative tasks related to your business, such as invoicing, bookkeeping, and compliance management, allowing you to focus on driving and growing your business.

 

Our team is equipped with the latest technology to streamline processes, provide accurate and timely information to customers, and improve communication and collaboration among team members. We are dedicated to providing a high level of service and are committed to helping trucking companies succeed.

 

If you’re looking for support to handle the administrative aspect of your business, consider OTR Solutions as a solution. Our dedicated back office services can help you to focus on the most important aspects of your business and reach your goals with more ease.

Back Office Support

Accounts Receivable Team

Managing accounts receivable for trucking companies is crucial in any trucking operation. That’s why we have built a dedicated and experienced team to assist you with this crucial aspect of your business. Our team is committed to providing efficient and timely support to help you manage your accounts receivable effectively.

 

We understand that managing invoices and payments can be time-consuming and challenging, and our team is here to take that burden off your shoulders. 


Get access to the best accounts receivable team from OTR Solutions today!

Accounts Receivable Team

Industry Leading Partnerships

OTR Solutions offers truckers a vast network of industry leading partnerships. Through these partnerships, truckers can access the latest technology, services, and products aimed specifically at their needs. OTR Solutions has partnered with some of the best names in the business to offer specialized solutions tailored to individual trucker’s needs. From fuel discounts to maintenance assistance to compliance support, OTR Solutions has the best resources available to help truckers succeed.

Partnerships

Instant Payments with BOLT

BOLT Instant Funding provides carriers with the freedom to access their cash flow when they need it, and not only when their bank is open. OTR Solutions is dedicated to servicing its clients in all parts of the country, at all times of day. By taking advantage of OTR Solutions’ leading factoring program and BOLT Instant Funding option, carriers can truly operate on their terms. Get started with OTR Solutions today.

BOLT

Factoring Solutions to Unlock Your Cash Flow

OTR Solutions offers Factoring Solutions that can help truckers maximize their cash flow. Our dynamic service allows truckers to get paid for their deliveries as soon as possible and accounts receivable factoring helps them to quickly access the funds they need to keep their business running smoothly. With OTR Solutions, truckers can take advantage of innovative technology solutions that save time, provide better customer service, and unlock cash flow when they need it the most.

Factoring Solutions