Hot Shot Trucking
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What Is Hot Shot Trucking?
Hot shot trucking is the process of hauling small loads that require fast delivery to their intended locations using a truck and flatbed trailer. These time-sensitive loads usually involve project-critical freight, such as industry-specific materials, equipment, or machinery.
How to Start a Hot Shot Trucking Company
If you’re looking to start your own hot shot trucking business, there are numerous actions you’ll need to take before you can begin operating:
- Create an LLC: Registering as a Limited Liability Company (LLC) protects your personal assets in the event of liability claims by establishing your business as legally separate from your personal life.
- Obtain the required documents: You’ll need to acquire a series of licenses and legal documents before you can establish a hot shot trucking company, such as an employer identification number (EIN), motor vehicle record (MVR), and Department of Transportation (DOT) number.
- Open a business bank account: Your business bank account keeps your business and personal finances separate, helping you better track your company’s income and expenses and determine its overall performance.
- Purchase your equipment: Most businesses use one of three medium- to heavy-duty truck types — Class 3, Class 4, or Class 5 trucks. You’ll also need to choose a trailer, such as a gooseneck, deckover, or lowboy trailer.
- Find freight: Hot shot load boards are excellent resources for finding nearby freight from reliable sources, helping you prevent deadhead runs.
The Cost of Starting a Hot Shot Trucking Company
There are many expenses associated with starting a hot shot trucking company, such as:
- LLC formation
- Licenses and permits
- Marketing and advertising
- Miscellaneous costs
With these expenses in mind, starting your hot shot company can cost anywhere from $30,000 to $75,000 or more depending on what assets you already have and what types of resources you buy.
How We Help Hot Shot Trucking Companies
At Apex, we help hot shot trucking businesses manage their freight bills with our factoring services for expedited trucking companies. When you do business with us, we’ll purchase your company’s freight invoices and provide you with payment in a matter of minutes. You can then use this working capital to accelerate your cash flow while minimizing debt.
Our freight factoring process is simple:
- Your truck driver delivers a load.
- You submit any paperwork for your hauled loads to Apex.
- We’ll verify the delivery with the brokerage.
- Once verified, we’ll transfer funds into your business account.
- We’ll collect on your payments for the lifetime of the invoice.
- You’ll pay us for our services.
- We’ll collect the fee and close the invoice.
Benefits of Factoring for Expedited Trucking Companies
Some of the many benefits of investing in factoring for your hot shot trucking company include:
- Immediate funds: Your company receives immediate cash for your invoices, increasing your cash flow and giving you the resources to pay for expenses like payroll, fuel, and repairs.
- No added debt: Unlike a loan, factoring doesn’t accumulate debt or require monthly payments.
- Unlimited capital: Factoring grows with your sales, meaning the more your sales increase, the more cash becomes available for your use.
- Back office support: As a new hot shot trucking company, you may require assistance managing the billing, collections, and communications for your invoices. Factoring companies take responsibility for these tasks for you.
Invest in Factoring for Hot Shot Trucking Companies Today
You can keep up with daily hot shot trucking costs and get paid fast with factoring services from Apex Capital. When you factor your freight bills with us, we’ll provide you with competitive rates, same- and next-day funding, and around-the-clock factoring to serve your needs.
Contact us to get in touch with our knowledgeable staff today!