When it comes to making money in the transportation business, starting your own shipping company can be beneficial. In order to generate revenue, you need to have access a semi truck that is equipped to meet the needs of your clients. As you struggle to get your new company off the ground, it can be helpful to invest in short-term semi leases.
Here are three reasons why short-term semi leases make sense for small shipping companies.
1. Short-term leases reduce overhead costs.
A new shipping company likely doesn't have access to the capital needed to invest in a brand new semi truck.
The average cost of a new semi can range between $80,000 and $150,000. When you add the cost of maintaining and insuring the truck to the purchase price, it's easy to see how purchasing a new semi truck could put a fledgling shipping company in a financial hole. By opting for a short-term lease, you will be able to gain access to the truck you need for your delivery without incurring the extended overhead costs of ownership.
2. Short-term leases reduce risk.
Starting your own shipping company comes with a significant amount of risk. If you aren't able to attract enough customers to make your company profitable, then you may need to shut your doors and go back to working for an established company.
If you purchase a semi truck, then you will be responsible for the monthly payments until your loan is paid off, whether your business remains open or not. A short-term lease allows you to access the semi you need for regular runs without incurring the long-term financial responsibilities associated with a purchase.
3. Short-term leases increase your diversity.
If you want to be able to make runs for all kinds of customers, then you will need access to a few different types of trailers. Investing in a single rig can be expensive enough, but few small shipping companies have the financial resources to buy traditional, refrigerated, and livestock trailers at the same time.
A short-term lease will allow you to access the rig you need for a specific job without committing to that rig for an extended period of time. This means that you can take on a variety of loads in order to increase your company's revenue stream.
When you understand the benefits that short-term semi leases can provide, you will be able to use these leases to increase the profitability of your small shipping company in the future.