The Hub has been in the works since early this year, and is a part of ES’s recent office expansion. According to Jason Williams, President, Expediter Services, the new addition is more than just a place to visit. “We’re really excited about The Hub! ES has realized the need for a place where contractors can visit and relax, but it’s much more than that. The Hub is a place where people can get together to share thoughts and ideas. It’s a part of ES’s continuing effort to support this community. We want The Hub to be your lounge, where you Never Stand (or Sit) Alone.”As you’ve no doubt noticed, there’s a theme that runs throughout each of our stories: Lease Purchase agreements can be fraught with risks for the Leasee as they are most definitely set up to benefit the Leasor.
We continue our series about how more and more contractors are moving away from Lease Purchase agreements and into a Much Better Alternative (jMBA) to truck finance with Expediter Services Path to Ownership (PTO).
The low barrier to entry with little to no down payment, no credit requirements and minimum start up costs make Lease Purchases an attractive proposition for the would be owner. But as you’ll see in our latest contractor story, Lease Purchase agreements can be fraught with risks for the Leasee as they are most definitely set up to benefit the Leasor.
For Drivers looking to become Owners, the Lease Purchase agreement has been a staple of the trucking industry for over a decade. Although these agreements are often risky and fraught with the potential of abuse for the Driver, the low barrier to entry with little to no down payment, no credit requirements and minimum start up costs make these offers attractive to many potential owners. Even though lease purchases have been easy to get into, the structuring of these agreements are stacked against the leasee.
In a recent Spotlight News article, we met Larry Rater and his wife Sherril, a husband and wife who have built a successful Expediting fleet, signed on with Panther. Throughout their sixteen year career, their business has experienced ups and downs, reflecting business cycles and market conditions. Their ability to capitalize and prosper during both good times and bad can be attributed to one of the most important precepts of business: PREPARATION.
Over the past two years, the Zaffino’s have racked up tens of thousands of miles on their truck, delivered hundreds of loads and generated a good revenue stream — but lately, they began to realize their truck was getting a little tired. “We’ve really driven our truck,” said Dee. “From the time we first bought it until just recently, we’ve made the most of our investment.”