Owner Operator Truck Financing

Becoming an owner operator is a fantasy for many truck drivers across Australia, mainly for the entrepreneurial aspects that can come with the title. From being your own boss, to not having to wait for your next pay-check; there are quite a few reasons why so many people aspire to achieve this goal.

Here are several things that you may want to consider before you go ahead and become your own boss – all of which could help to make your new business venture as successful as possible.

What’s better; lease on to a carrier, or independent operation?

There are a number of advantages and disadvantages that can come with both of these options, including:

Independent driver:

  • Often, you get to choose which loads and lanes you think will be right for you
  • In most cases, company bureaucracy will be no issue for you
  • Generally, it will be up to you to understand load selection

Leasing onto another carrier:

  • Your company is likely to have payment advance systems, fuel cards and money transfers
  • In most cases, you won’t have to worry about getting your own operating authority
  • Your carrier will provide you with a trailer
  • Most carriers will reimburse your for plates, tolls and permits
  • In most cases, you won’t have to worry about getting your own operating authority
  • Most companies will offer fleet rates, so you can operate a rig
  • You’re likely to earn less per mile, but work is likely to be more consistent

Make a personal inventory

Sometimes, habits and ethics that you possess could either help or hinder your efforts of running a successful business. A few you things you may want to think about are:

Your health – If you have an illness and might not get better any time soon, becoming an owner driver may not be the best choice for you.

Home time – If you’re okay with working weekends and on public holidays for work, you may not have much of a problem with being an owner driver.

Priorities – Owner Operators typically have to go on longer trips and generally need to be on time, which is why putting work before other priorities is often a necessity.

Family – If you want to be able to spend quality time with your family, the life of an owner driver may not be ideal.

Career goals – If you think that you may want to change your career after a while, you may want to consider other career options.

Insurance benefits – If your company provides you with private insurance benefits, you may need to consider what kind of insurance you’ll need as your own boss.

Keeping on top of finances

In general, the amount of cash you have to work with can make all the difference to your dream of becoming an owner operator.

Life insurance – If you’re on the road all the time, getting life insurance may be crucial to make sure that, in the event of an accident, your family will be taken care of.

Emergency savings – Having cash ready in case of an emergency can often be important – which is why most suggest saving 3 to 6 months’ worth of living expenses.

Personal expenses – In some cases, you may have to reduce your personal spending to put more towards your business.

Debt – Becoming an operator can often be quite challenging for those who have a lot of debt, so if you’re tied up financially, you may want to wait until your credit has improved.

Credit score – In most cases, a lender isn’t likely to put much faith in you if you don’t have a good credit score.

What do you need from a truck?

When choosing your truck, you may want to consider:

  • How old the truck is
  • If the truck will be able to handle the loads you intend to put on it
  • How good the gas is on the vehicle and how many miles it has
  • How comfortable you’ll be driving it
  • If it come with amenities
  • Where you plan to work

Your business structure

Generally, you’ll have to create your own business plan, as well as a plan for your taxes. In some instances, getting the help of an expert for legal and accounting can be a wise idea.

What to consider when applying for Owner Driver Finance

In many instances, a finance company will want to know a range of information before they award an application. Successful applications typically include the following:

  • Whether you have a deposit; either cash or trade
  • Your current accommodation status
  • Good finance references
  • Proof of stability
  • Evidence of cash flow to make your business viable and profitable
  • Evidence of guaranteed work
  • Proof of savings (in case of an emergency)

Disclaimer

This newsletter does not necessarily reflect the opinion of the publisher or supplier. It is intended to provide general news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither the publishers, supplier, authors nor their employees, can be held liable for any inaccuracies, errors or omission. Readers are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this newsletter as a substitute for professional advice.

Your full financial situation would need to be reviewed prior to acceptance of any offer or product

 

Disclaimer -This page/article provides general information only and has been prepared without considering your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

Credit Representative Number 496186 is authorised under Australian Credit Licence Number 389328.
ABN – 63 007 814 458. Member of MFAA.

Ph. 1300 418 811
Email – info@truckfinanceonline.com.au