Starting Your Own Trucking Company: The Biggest Expenses

Starting a trucking company is profitable, and helps improve currently strained supply chains. Whether you want to operate locally, service specific industries, or partner with larger carriers, getting up and running involves navigating some red tape and start-up expenses.

Permits and Licenses

Trucking companies have more pre-launch administrative work than most small businesses. While corporate organization type and tax IDs are a given, there are also permits, MC Numbers, vehicle registration, and more. All of that paperwork is a major time sink, and the administrative costs can really eat into start-up funds. Single Point Capital’s start-up program helps owner-operators get their trucking companies off the launchpad. We will assist you in getting all of the proper forms and permits in order, and we will waive administrative costs if sign up for our comprehensive freight bill factoring services.

Fuel Costs

Fuel costs are a baked-in expense for any trucking company. However, fuel costs are not always fixed. As we saw in 2022, fuel production, sanctions, foreign conflicts, and price gouging can force trucking companies to pay more than necessary just to keep business moving. New trucking companies need to save money wherever they can, and the best way to start off is by joining a fuel program. Whether drivers are paying at the pump during their hauls or you plan to buy fuel wholesale to keep on-site, a fuel program can greatly reduce costs and keep overhead low. Single Point Capital offers a fuel program that works at over 5,000 locations nationwide. We offer the steepest discounts at the pump, as well as for wholesale purchases. Additionally, trucking companies will be able to track employee expenses to get a better handle on accounting.

Accounts Receivable

Whether you do your own books or work with a CPA, accounting can take up a lot of resources. But accounts receivable should not be a financial burden. After all, invoices mean your trucking company gets paid, right? In theory, that is correct. However, the standard operating procedure for trucking companies is to issue invoices with payment windows of 30, 60, or even 90 days. The logic behind this is that staggered payments create a constant influx of revenue. The reality is that staggered payment windows mean customers may not make payments for a month or longer. This is not good if you are starting a trucking company and rely on every bit of revenue to keep things running. Gaps in revenue can flip cash flow upside-down, with more money leaving your trucking company than coming in, often forcing you to take on debt through short-term loans to smooth out uneven revenue cycles. To eliminate this issue, new trucking companies use freight bill factoring. Freight bill factoring from Single Point Capital turns unpaid receivables into cash and makes funds available within 24 hours, so new trucking company owners can stop chasing after every outstanding invoice and maintain strong cash flow.

Commercial Vehicle Insurance

No matter how you cut it, trucking companies need to have insurance before their drivers go out on the road. Insurance for commercial vehicles is on the rise, and a trucking company with no established record of safe driving can end up with a large upfront cost before they launch their operations. Finding a way to lower or offset the initial payment is crucial when managing overhead costs. Single Point Capital offers a deferred down payment program for new trucking companies. We will cover up to 50% of the initial cost, and the deferred amount is spread out and repaid from a percentage of factored invoices. This greatly reduces the upfront insurance costs while also making payments manageable.

Start Your New Trucking Company Now

Single Point Capital is your one-stop shop for launching your new trucking company. From the initial paperwork and permits to steep fuel discounts, freight bill factoring to boost cash flow, deferred insurance programs, dispatching, and more, we offer comprehensive services to help you start your trucking company and keep things moving for long-term success. If you are thinking about startup your own trucking company and want to start off with a competitive edge, contact the team at Single Point Capital today.