As an experienced professional in the transportation and logistics industry, I understand the importance of finding the right company to lease onto.
Choosing the right company can make all the difference in the success and profitability of your business.
Today we’ll uncover all the ins and outs of choosing the best company to lease a truck to.
How to find a company to lease on to as an owner-operator
Owner-operators don’t necessarily need to do it all by themselves – they can operate under their own authority, but they also have the option to lease on to a company. Applying for your own permanent authority costs a few hundred dollars, but you’ll also need to obtain the appropriate insurance and have specific documents on file before the FMCSA will issue your authority. The total cost could be between $3,500 and $10,000 combined.
Leasing on to a company is an efficient way through which you can save yourself some money and see if this is something you would like to pursue long-term, before putting your own chips on the table.
Both these options have advantages and disadvantages: being by yourself offers you complete freedom and you can operate on your own terms, but when you are leased with a company you get the security of the next load without being involved in the process if you choose not to do self-dispatch.
At the beginning of your journey, you might have some doubts about going all-in as an owner-operator authority, and that is why finding a company to lease on to can be a great start for you in order to see how the wheels spin.
There are several ways through which you can find a company that suits your requirements. These methods are accessible to anyone interested in collaborating with a company for their trucking operations.
WORD OF MOUTH
The very first thing you should do as an owner-operator who is looking to lease with a company is to simply ask around. As easy as it seems, this is the best way to start finding out what company would suit your needs. Ask the drivers you know and get in touch with those you don’t know yet in order to find out information about their experience with the company they are leased to.
The things you should take into consideration when you are researching the matter are the following:
Make sure the company has experience in the industry: the last thing you want to do is to lease on with a company that has just started out. You need to lease under a company that already has well-established processes in place and is able to sustain the additional costs that need to be supported if they decide to have you on board.
When it comes to the percentage taken from your earnings, take into consideration that the higher the percentage, the more services will be provided. Usually, the lower percentages are offered to those owner-operators that are able to self-dispatch and are paying their commercial insurance. When the company offers you a dispatch service and they are also paying insurance, the percentage taken is higher.
Last but not least, do not forget about the owner-operator expenses such as your own truck, the trailer, fuel, and maintenance. These are, most of the time, not covered by the company, so you should really do the math before signing any lease.
When asking around, make sure you bring up all these points to your fellow owner-operators and decide based on what is best for you.
GO ONLINE
If you already know what you are looking for in a company but you don’t know where to find the companies that are looking for owner-operators you can simply Google them. The best sites to do this are Craigslist and Indeed. The companies that are looking for owner-operators have lots of listings on these sites, so you’ll have a lot to choose from.
You can filter based on the location you are interested in and also put in the search bar specific keywords that will adjust your results to listings that are suitable for the kind of job you are looking for. Some of the keywords that might help you when you are doing the search are the following:
- owner-operator
- owner-operator needed
- owner-operator flatbed
- owner-operator belly dump
- end dump owner operator
- tandem owner operator
- owner-operator tanker
As you can see, these keywords should be based on the type of truck you are driving, and you can combine them as much as possible in order to get the most out of them. This way, you’ll be more efficient and the search will go faster.
Facebook groups are another efficient way to find companies that are looking for owner-operators. You can use a combination of keywords similar to the ones above in order to find the groups that are active and are discussing the matter. It might take you a while, but read and soak in all the information you can. The people in these groups have been there and done that, in good and bad times, so take their advice and heed their warnings. They know more than you do.
It is really important to do your research properly before signing any terms with a company. Take into consideration all the aspects that might influence your life and the way you operate. In order to have more control over your time and the profitability of your business, you have to focus your search on companies that allow you the freedom to run and grow your business as you see fit.
On the same note, even if you decide to sign, you might want to have your contract checked by an attorney. It is not standard practice, but it doesn’t hurt to double-check with a specialist if you have the resources to do so. Have them explain to you the terms of your contract in layman’s lingo to make sure you have the freedom you deserve. This is not a must, but it can be beneficial if legal terms are not something you are used to.
What to look for when you leasing on with a carrier
As an owner-operator in the trucking industry, finding a reputable company to lease on to is crucial for your success.
Most people will also ask the recruiter how much money they will make. I would advise to not ask that question, at least not like that because what you’re basically doing is asking them to lie to you. In a company with no forced dispatch, how much money you’re going to make depends on how you work, how long you stay out, what areas you run, what other limitations you impose.
Obviously, it also depends on the state of the market at any given time and on the expertise of your dispatcher.
I think the best way to go is to ask the recruiter to put you in contact with one or two owner operators that have been working with the company for a while. An honest company should have no problem with that.
How much money do you make as an owner operator
What percentage of gross do they charge?
A very low percentage, 10% for example, can’t cover all the expenses since this is a very expensive business to operate with a lot of overhead.
So the question is how do they get the rest of the money they need to survive and make a profit? What is included in the percentage they charge: dispatch, help with maintenance etc.;
Do they have company trucks too or just owner-operators?
Usually, the company trucks will be given preferential treatment that’s why it is better to lease on to a company that is 100% owner-operators.
What benefits do owner operators get from leasing onto a carrier?
As an owner operator in the trucking industry, you have the option to lease your truck and services to a transportation and logistics company. This can provide numerous benefits for your business and operations. Here are some of the advantages you can expect from leasing onto a company:
Access to Established Customers
Leasing onto a company can provide you with access to a well-established and diverse customer base. This can help you expand your business and increase your profits as you gain more experience and expertise in your chosen industry.
Reliable Contracts and Consistent Work
Working with a reputable transportation or logistics company can provide you with reliable contracts and consistent work. This can help you avoid the challenges of finding new customers, managing billing and collections, and handling other administrative tasks that come with running your own business.
Access to Industry Expertise and Resources
Leasing onto a company can provide you with access to the expertise and resources of an experienced team of professionals. This can help you stay up-to-date with industry trends, regulations, and best practices, while also providing you with additional support for managing your business operations.
Reduced Financial Risks
Leasing onto a company can also help you reduce your financial risks as an owner operator. The company you lease with will typically provide you with liability insurance coverage, as well as other types of insurance that can protect you from financial losses due to accidents, theft, or other unexpected events.
Overall, leasing onto a company can be an excellent way for owner operators to expand their business, increase
What factors should an owner operator consider when choosing a company to lease onto?
Choosing the right company to lease onto is a crucial decision for any owner operator in the trucking industry. The company you lease onto will have a significant impact on your business’s success and profitability. With so many options available, it’s essential to consider several factors when selecting a company to lease onto. Here are some of the key factors that every owner operator should consider:
1 Company Reputation and History
Before signing any lease agreements, you should research the company’s reputation and track record. Look for a company with a solid reputation in the industry and a history of success. Check the company’s safety record, customer satisfaction ratings, and financial stability. You can also read online reviews and talk to other owner operators to get firsthand feedback and insights.
2 Operating Requirements
Every company has different operating requirements, and it’s important to understand them before you sign a lease agreement. Consider the company’s service areas, equipment requirements, and load types. Make sure that the company’s operating requirements align with your business needs and that you are comfortable with their expectations.
3 Compensation and Payment Terms
Compensation and payment terms are crucial factors to consider when leasing onto a company. You should understand how the company pays its owner operators, the percentage of revenue or mileage rate, and any additional fees or charges. Ensure that the compensation and payment terms are fair and reasonable and that you understand all the details before signing the lease agreement.
4 Support and Resources
The level of support and resources provided by the company.
How does an owner operator manage the risks associated with leasing onto a company?
As an owner operator, leasing onto a company can be a great way to expand your business and increase your workload. However, it’s important to be aware of the potential risks involved in this type of arrangement. Here are a few tips on how to manage these risks and protect your business:
1 Do your research
Before you sign a lease agreement with a company, make sure you thoroughly research its reputation and track record. Look for reviews from other owner operators who have worked with them in the past, and check their safety record and compliance with regulations.
2 Understand the terms of the lease.
Make sure you carefully review and understand all the terms of the lease agreement, including any fees, insurance requirements, and maintenance responsibilities. If you have any questions or concerns, don’t hesitate to ask for clarification from the company.
3 Have a lawyer review the lease
It’s always a good idea to have a lawyer review any legal documents before you sign them. A lawyer can help you identify any potential pitfalls or areas of concern in the lease agreement.
4 Maintain your equipment
One of the biggest risks of leasing onto a company is the potential for maintenance issues or breakdowns. Make sure you are regularly maintaining your equipment and keeping it in good condition to minimize these risks.
5 Have proper insurance coverage
Make sure you have the appropriate insurance coverage to protect yourself in case of accidents or other incidents. This may include liability insurance, cargo insurance, and physical damage coverage.
How can an owner operator best negotiate terms when leasing onto a company?
As an owner operator looking to lease onto a company, negotiating favorable terms can be a daunting task. However, with the right approach, you can secure a lucrative deal that benefits both you and the company in question. Here are some tips to help you successfully negotiate your lease agreement:
1 Understand the terms and conditions of the agreement
Before entering into any negotiations, it’s crucial to read and understand the lease agreement fully. Make sure you know what you’re getting into, the obligations and responsibilities of both parties, and the costs involved.
2 Determine your needs
Know what you need from the lease agreement and what you are willing to negotiate. Consider factors such as your desired mileage, the length of the lease, the rate per mile, and any additional expenses such as fuel, maintenance, or insurance.
3 Research the company
Research the company you want to lease onto to understand their business and the services they offer. This information is essential in determining the company’s expectations, capabilities, and any challenges they may face.
4 Be confident
As a business owner, understand the value of your services and the advantages you bring to the table. Be confident and assertive in negotiating your rates and terms. Clearly express your needs and expectations, and be willing to negotiate for a deal that benefits both parties.
5 Seek legal advice
Before signing any lease agreement, seek legal advice to ensure you fully understand the legal obligations and implications involved. A lawyer can help you review the contract and alert
