What to Ask a Carrier Before You Lease On

Choosing the right carrier is an important decision for any owner-operator. A carrier relationship can affect your revenue, expenses, schedule, and overall business experience.

Before signing a lease-on agreement, take the time to understand exactly what the carrier offers and what they expect from you.

Ask About the Pay Structure

Start by understanding how you will be paid.

Ask about the percentage or rate structure, settlement schedule, fuel surcharge, deductions, and any additional fees. Don't focus only on the advertised percentage. You need to understand what that percentage is actually calculated on and what may be deducted before you receive your settlement.

Understand the Contract

Read the lease agreement carefully before signing.

Pay attention to the length of the agreement, termination requirements, equipment requirements, insurance responsibilities, and any fees or penalties.

If something isn't clear, ask questions before signing rather than making assumptions.

Ask About Freight

Find out what type of freight the carrier typically provides and where their lanes operate.

Ask questions such as:

• What areas do you normally run?

• Is the freight regional or OTR?

• How consistent is the freight?

• Are there dedicated lanes?

• How are loads assigned?

• Can I refuse a load?

Understanding the freight can help you determine whether the carrier fits your preferred operating style.

Understand the Expenses

A carrier may offer a strong-looking rate, but additional costs can affect your actual earnings.

Ask about:

• Insurance deductions

• Factoring fees

• Administrative fees

• Trailer fees

• Escrow requirements

• Dispatch fees

• Maintenance programs

• Other recurring deductions

Knowing these expenses before you sign can help you calculate your expected take-home amount more accurately.

Ask About Settlements

Find out when and how you will receive your money.

Ask about the settlement schedule, paperwork requirements, payment methods, and how quickly completed loads are processed.

Consistent cash flow is important when you're responsible for fuel, maintenance, insurance, and other operating expenses.

Look Beyond the Numbers

The highest advertised rate isn't automatically the best carrier opportunity.

Consider the complete relationship, including communication, freight consistency, payment terms, deductions, support, and contract conditions.

The goal is to find a carrier relationship that makes sense for your business and supports your ability to protect your margins.

Do Your Research Before Signing

Take the time to compare your options and ask questions before committing.

As an owner-operator, you're building a business—not simply looking for your next load. Understanding the carrier relationship before you sign can help you avoid surprises and make a decision based on the complete picture.

Know the terms. Understand the numbers. Protect your margins.