FACTORING?

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Starting your own trucking company should not be a difficult process if you understand the industry. You should have your Commercial Driver's License (CDL) by now, as well as an understanding of the strict regulations of the transportation industry, both federal and state, that a startup will be required to comply with before licensing is granted to operate a carrier.

The US Department of Transportation offers guidelines, which outline the necessary steps to start your own trucking company.

1. Determine FMCSA registration needs/requirements:

• USDOT Number and Hazardous Materials Safety Permit Registration

• Operating Authority (MC Number)

2. Complete FMCSA Application Process

• Don't have a USDOT Number or Authority? Apply Online via the Unified Registration System

• Already have a USDOT Number or Authority? Apply via FMCSA's legacy systems

• Insurance Requirements 

3. Determine State notification/registration requirements

4. Begin New Entrant Safety Assurance Program

5. Obtain permanent USDOT registration

6. Maintain/Update USDOT Number and Operating Authority information

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A trucking company should also start planning on how to maintain a strong cash flow, generally, the carrier will be required by its customers to grant them credit on their delivered loads, typically 30 to 60 days, this could create a cash flow dilemma, however, by making arrangements or signing-up with a trucking factoring company before or after starting operating, cash flow concerns should not be an issue.

A trucking factoring company can advance funds on delivered loads shortly after delivery is made even though the invoice/freight bill is not due for payment for another 30 to 90 days. For more information on our freight factoring services, please click on the Get Started button.

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get started