How to Start a Trucking and Transportation Company?
Starting a Transportation Carrier
Article / How to Start a Trucking and Transportation Company?
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FACTORING?
Starting your own trucking company can be a straightforward process if you have a solid understanding of the industry. By now, you should have obtained your Commercial Driver's License (CDL) and be familiar with the strict regulations governing the transportation sector at both the federal and state levels.
It is essential to understand these regulations, as compliance is necessary to obtain the required licensing to operate as 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:
2. Complete FMCSA Application Process
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Don't have a USDOT Number or Authority? Apply Online via the Unified Registration System
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Already have a USDOT Number or Authority? Apply via FMCSA's legacy systems
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
Freight Factoring: Planning Ahead
A trucking company should plan how to maintain a strong cash flow. Generally, carriers are required by their customers to extend credit on delivered loads, typically for 30 to 60 days. This can create a cash flow dilemma. However, by making arrangements or signing up with a trucking factoring company before or after starting operations, cash flow concerns can be effectively managed.
A trucking factoring company can provide immediate funds for delivered loads shortly after delivery, even if the invoice or 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.