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Partnership Programs
What is a Partnership Program and how can it benefit a trucking company that is experiencing challenges?
This program was specifically designed for carriers that are experiencing insurance, cash flow, capital, back haul, equipment, personal, or operational problems. These carriers and are also looking to build their company while improving their cash flow, reducing their operating expenses, and in many instances building up their brokerage divisions and/or creating a new one.
Our clients have spent the last several years developing this product in conjunction with Ahern and Associates. Our Partnership Programs allow a trucking company to:
- "Stream line" it's operation.
- Increase cash flow.
- Decrease operating cost.
As you know, cash flow is "King". Since the trucking industry has been plagued with challenges like rising fuel costs, many trucking companies are suffering severe cash flow problems, and they're looking for ways to reduce their operating cost. These particular programs will provide the following;
- Automobile Liability Insurance.
- Cargo Liability Insurance.
- Workers Compensation Insurance. (Optional)
- Fuel cards.
- Receivable financing - including customer credit checks.
- Trailer pools.
- DOT log audits.
- Additional truck capacity to service your clients.
- Access to better freight & back hauls.
For example, on insurance, a carrier is normally required to place a 25%-30% insurance deposit for workers compensation, automobile liability and cargo legal liability. In some instances, a carrier may have a "rolling deposit", but then you're paying 125% of the insurance premium. Additionally, because fuel is so expensive, many fuel vendors are requiring payment immediately upon demand or within several days.
The Partnership Program will allow you to:
- Utilize a fuel card
- Costs will be taken out of your settlement at the end of the week; a great cash flow advantage.
In reference to insurance, it will automatically be cash flowed into your settlements on a weekly basis, at substantially less than market rates and will provide up to $17MM of automobile liability coverage.
In conjunction with the above, our clients have a special program if you are an asset based carrier;
- They may buy your trailers and lease them back to you at a moderate cost.
- They will provide trailer pools for seasonal business adjustments.
- This will allow you to either:
- Inject additional working capital into your company, and/or;
- Put some of the money away towards your retirement.
Also, if you're interested in starting a brokerage division or building your brokerage division:
- They have 31 agents/sales representatives located across the US that can be used as sales representatives to load your trucks.
- They have 12,000 approved truck carriers in their system.
- They have an extensive network of customers on a national basis, as well as a staff of professionals that can assist you in cross selling your business;
- They'll actually visit your company and set up the brokerage operation and monitor it in conjunction with you and help you grow that revenue.
- They also broker Van, Flatbed, Reefer, Inter-modal and have contacts with all the major railroads.
Additionally;
- They'll provide the direction of DOT.
- They'll do all logs and the audits, and;
- All of that is included in their services.
Obviously, there's a charge for these services, but when you add all the business expertise and the cash flow advantages, it allows you to;
- Focus on your business.
- Reduce your operating expenses, and;
- Increase your cash flow.
As part of the program, our client acts as your receivable lender:
- They'll do the credit checks, and provide a line of credit:
- If they do the credit checks and your customer does not pay you, they will quota share the loss of revenue. In other words, it's not charged back to you in its entirety.
Whether you're factoring receivables or have a line of credit, this program will assist you in increasing your cash flow.
In closing, this program will provide:
- Better cash flow!
- The ability to cross-sell your services to your customers.
- Access to better paying freight.
- Access to more trucks - 12,000.
- The ability to utilize trailer pools where necessary.
- A sales force of 32 agents nationally.
