Getting Started as an Independent Truck Driver
The pros and cons to becoming an independent trucker in the transportation industry are endless. Independent truck drivers are given the freedom to accept and reject customers, set your own prices, and control your schedule on and off the road.
The cons of being an independent truck driver are finding your own loads to haul, financing your equipment , and staying on top of your cash flow. Below, we give advice on overcoming the common cons you face as an independent truck driver.
If you plan accordingly, the pros of being an independent truck driver will out way the cons tremendously.
An independent truck driver tips for finding regular truck loads:
- Online Load Boards: Also known as a freight board, is an online matching systems that allow shippers and freight brokers to post loads. Shippers and carriers are able to find each other and enter into agreements to move freight by using an online load board. These free load boards are available 24/7 online, load boards are easy to use on the road, and reduces deadheading.
- Social media: Facebook, Google+, LinkedIn, and Twitter are a few social media platforms that are commonly used to advertise truck loads. All three platforms reach very broad audiences within companies, groups, and independent truck drivers. Not only are these jobs easily found and shared but they have low-cost advertising. An independent truck drivers and companies seeking drivers can both utilize social media to grow a business.
- Craigslist: Searching Craigslist for truck loads can be beneficial, but you must be cautious. Craigslist gives you the ability to search geographically, post your own services, and post ads to hire your own employees. If you decide to take a job, be sure to check credibility thoroughly before taking the job. Meeting in person, if possible, and running background check are also precautionary measure you can take.
Financing equipment as an independent truck driver:
- Bank loans: Borrowing money from the bank can be beneficial if you have good credit, or you have open or expandable credit lines. Depending on your terms at the bank it may be cheaper than going through an equipment finance company, but not always. An advantage of a bank loan is it can be less expensive. The disadvantages of borrowing money from the bank are the ample amounts of paperwork that is required from you. You also have to wait several weeks while the paperwork is processed and even then, you have an 85% chance of getting declined of your loan. You are also at risk of tying up your credit lines, your sales tax may be due upfront, and down payments will be much higher.
- Equipment financing: Equipment financing enhances the ability of a business to focus on its other operations. It is a source of funding that lets you hold onto your cash so it can be used for other areas of your business. Financing equipment also helps you maintain cash flow and helps to budget by setting customized rent payments to match cash flow and even seasonal cash flows.
Freight factoring increases truck drivers’ cash flow:
- The easiest form of financing: Just apply online free of charge and be approved within 24 hours. Phoenix Capital Group is hassle-free, unlike bank loans and long credit checks.
- Improves your customer credit quality: Factoring companies review the credit quality of your existing and new customers, helping you determine which have good payment habits, thereby allowing you to work with the best clients.
- Grows revenues: Freight bill factoring solves your short-term cash flow problem. Drivers are able to accept new customers and more loads because drivers no longer have to wait to get paid by customers.
- Reduces your credit risk: Freight factoring is the solution to avoid bad credit. It is not a bank loan and does not require a credit check or bankruptcy check.