Guide
New authority, first 90 days: plan the cash gap before it plans you
The truck is running and the loads are booked. The money for the first loads has not arrived yet. That gap is the part nobody puts on the load board.
In short
- Costs start on day 1. Broker payments often start weeks later.
- Size the gap with three numbers: monthly costs, monthly invoiced revenue and days to pay.
- Levers: quick pay, factoring, direct billing with a cash cushion, and picking faster payers. Each has a cost.
- This is a planning model, not financial advice. The numbers are example data.
Costs first, cash later
New carriers often start with slow-paying customers and without a payment history. Fuel, driver pay and insurance come due on their own dates. Broker payment depends on the paperwork and on the broker's terms. See authority and insurance check for what brokers look at and broker vetting for the other side of the table.
The figure shows the shape: cash dips under zero before the first payments land, then recovers. The size of the dip is what you need to cover. The 90 day model below makes it concrete, and the cash flow simulator lets you change the pay speed and watch 13 weeks move.
Write the plan down before the first load. A page with three numbers and a lowest point tells you how much room you have and when to start asking about quick pay or other options.
Build your own 90 days
List monthly costs
Fuel, driver pay, insurance, truck payment, ELD, permits, repairs. Use real quotes, not guesses.
Estimate invoiced revenue
Loads per week times the average rate. Be modest for the first month.
Set days to pay
Take the longest payment term you expect and add the days to send paperwork.
Find the lowest point
Month by month, starting cash plus money in minus money out.
Pick the lever
Cushion, quick pay, factoring or faster payers. Price each one before you need it.
Same costs, two payment speeds
| Month | Pays in 1 month: flows | Cash end of month | Pays in 2 months: flows | Cash end of month |
|---|---|---|---|---|
| Month 1 | $0 in, $16,500 out | -$4,500 | $0 in, $16,500 out | -$4,500 |
| Month 2 | $20,000 in, $16,500 out | -$1,000 | $0 in, $16,500 out | -$21,000 |
| Month 3 | $20,000 in, $16,500 out | $2,500 | $20,000 in, $16,500 out | -$17,500 |
Reading the example EXAMPLE VALUES
Example data. Starting cash $12,000, invoiced revenue $20,000 a month, costs $16,500 a month. Payment arrives one month or two months after the work.
| Case | Lowest cash | Cushion needed to stay above zero |
|---|---|---|
| Pays 1 month later | -$1,000 | $1,000 |
| Pays 2 months later | -$21,000 | $21,000 |
Same trucks, same loads. The second case needs about 21 times the cushion of the first, only because the cash arrives a month later. $12,000 + $0 - $16,500 gives -$4,500 after month 1, and -$21,000 after month 2 when nothing has been paid yet. Your numbers will differ. The shape will not.
Mistakes in the first 90 days
- Counting booked loads as cash. Booked is not billed, and billed is not paid.
- Skipping the fixed costs. Insurance and payments hit early. List them first.
- Taking every load. Slow payers and thin rates stretch the gap. Use a floor, see minimum rate floor.
- Waiting for trouble to price the levers. Learn the fee and the terms of quick pay and factoring while cash is fine.
Copy and fill in
Keep it factual and short. Save the reply with the load file.
Revenue is not cash
An invoice you sent is not money you can spend. Count cash only when it lands. If a broker pays late or short, the gap grows. Use the invoice aging tool every week.
We do not give legal, tax or financial advice. Your contracts come first.
Questions
Is factoring right for a new carrier?
It can bridge the gap, and it has costs and terms. Compare it with the other levers. See factoring vs direct billing.
How big a cushion do I need?
Run your own model with your costs and pay speeds. The lowest point is your answer, plus a margin you are comfortable with.
Do brokers pay new carriers more slowly?
We have no data on that, so we make no claim. Ask each broker for its terms in writing.
Do I need a new authority checklist?
Start with authority and insurance check.
Related: 13 week cash flow, authority and insurance check, broker vetting, factoring vs quick pay, owner-operators, all guides.
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