Hey FedEx Contractors,

Believe it or not, independent insurance specialists are there to save you money.  The number one bit of advise they have to save you money is to have a better safety record.  An experience modification rate determines how much you pay for compensation premiums.  Having fewer accidents and claims lowers your experience modification rate and lowers the amount you’re shelling out for insurance!

Here are some safety tips on how to save you money:

1.  Consistent communication: Simple injuries left untreated can turn into enormous claims that hurt your insurance credibility.  Communication about these little injuries to your independent insurance agent can save you money!

2.  Rear view cameras are helpful, but you could do more.  Back up sensors on trucks are a cheap way to prevent one of the most common causes of accidents and loss of bonuses.

3.  Have frequent group safety meetings.  Get your employees engaged in the conversation.  Face-to-face, daily safety tips to your drivers can improve your relationship with employees and prevent many accidents.

Work Truck Direct is a fleet management solutions company, we do not provide insurance.  But did you know that you can get insurance from outside carriers that meet the requirements set by FedEx Ground?  Did you know that insurance requirements for an independent contractor differ from that of an independent service provider?  Your business is unique, so you should have an agent who has experience in writing insurance for FedEx contractors, preventing accidents and handling compensation claims.  Insurance is a service, and using an independent insurance specialist is your best bet to get the best service.  Please consult an insurance specialist such as Brian O’Connor of Paradiso Insurance to see how you could save.

Recently a large online retailer unleashed their plans to create a fleet of automated delivery drones for package delivery. Here at Work Truck Direct, we decided to have a little fun with this and cheer up this extremely busy Peak Season. Enjoy the comic strip and Happy Holidays!

*This comic is intended purely for entertainment purposes only. All of the printed materials are solely intended for purposes of satire, parody and humor. None of the views expressed on this page should be confused with the actual views of Work Truck Direct. We do not condone the destruction of any property.

The escalating price of new work trucks has many buyers considering the used truck market. For about 40 – 65% of the price of a new work truck a customer can buy a used truck that has more than 75% of the useful life still available, if properly maintained. The main problem is how do you locate and verify a work truck in good condition, when the vehicles are typically bought as-is & sight unseen. Below are a list of helpful suggestions to help complete due diligence when purchasing a used work truck.

1. Dealer Reputation – Ask the dealer for a referral of a customer who recently bought a truck from them. Having a customer’s opinion is often the best way of discovering what kind of dealer you are about to transact with.
2. Ask the dealer where the truck came from? – Used trucks that have operated in the Northeast, Midwest, and upper Central regions probably have been exposed to some very harsh de-icing agents. The last thing you need is a vehicle with an eroding undercarriage. Try to get trucks that have operated in the South, Central South, Southwest, West, and Northwest regions.
3. Ask for an ECM (Electronic Computer Module) readout – Truck manufactured after 2002 are equipped with an ECM module. An ECM report will give you the true mileage reading. Many times dashboard instrument clusters are completely replaced in a work truck, so the new digital odometer might read lower that the true miles. The only way to get accurate mileage reading is to generate an ECM report.
4. Buy a VIN inspection – For less than $50.00, you can order VIN inspection that will give you the entire reported history for accidents, service, ownership, and DMV registration. A good online resource is: www.autocheck.com
5. D.O.T. inspection – Request the dealer perform a DOT (Dept. of Transportation) inspection with a 3^rd party service facility. Costs can vary from $75 – $150.
6. Request pictures of the truck – Extensive pictures of both the exterior & interior are essential in making a good decision. It might be wise to request a picture of the VIN plate as well.
7. Used vehicle condition report – Hire a local service center to independently inspect & complete a used vehicle condition report. A D.O.T. inspection report will suffice, but a used vehicle condition report can be significantly more extensive.

The old saying goes, “an ounce of prevention is worth of a pound of cure”, this holds exceptionally true in purchasing a used vehicle. Spending a small amount of time and money into a future investment is a great way of protecting yourself from a substandard used vehicle. Following just a few of these items above and you’re one-step closer to buying a good used work truck.

Recently we spoke with a FedEx contractor that has created an interesting safety product. Born out of necessity, Gus created the backup counter as logical way to help his drivers potentially reduce accidents. Here is his story:

I have been a FedEx contractor for about four years. Two years ago my drivers had three backing accidents in a very short time. Backing accidents account for 90% of all commercial accidents. Backing is the number one cause of death in children involved in a vehicle accident. This troubled me greatly because I was having safety meetings and ride-a-longs, but it was obvious that I still had a problem. What I suspected was that my drivers would agree with the safety meetings and put on good behavior during the ride-a-longs, but when I was out of sight, they did whatever they wanted. I realized that the only way to change this was to modify driver behavior. Although we had other safety devices like backup cameras, these do not modify driver behavior. I determined that I needed a way to monitor my drivers when I was not with them.

I targeted backing because I felt that if I could reduce the number of times my drivers backed up each day, it would greatly reduce backing accidents. I came up with the idea to install a device that would count the number of times a driver backed up his truck each day. I asked a local electronics expert and he told me that what I wanted couldn’t be done. I just couldn’t believe this so I asked my brother, who isn’t an electronics expert but is an extremely smart guy, to help me. I told him the problem, which was that I wanted to count how many times the transmission went in reverse but did not want to count how many times the transmission went into reverse as it passed from park to drive. My brother, Jerry Bowman, said that he could do it. It took a couple weeks for him to come up with a design and after a couple trips to Radio Shack he came up with a working prototype. We called it Backup Counter, tested it on my trucks, made some small changes and decided to make it available to others in the transportation industry. We made it easy to install with only three wires.-one to positive, one to ground, and one to the reverse light. It is small and will fit on virtually any vehicle.

Here is what I have discovered. First, I put the Backup Counter on my trucks without telling my drivers. The data told me that they were backing up 60-100% percent of all stops. This number is atrocious! Next, when I told the drivers that I had installed the device and I would be monitoring their backups, their backing went from 60-100% down to 35%. This is a great improvement. That means if a driver makes 100 stops a day this improvement would reduce the amount of backups by at least 6,500 times a year. Next, I told my drivers that they needed to reduce their backups to 20%. Every one of my drivers are now backing up less 20% or less of their stops. That is at last 11,500 fewer backups a year. This is a staggering number when you consider that 90% of all commercial accidents involve backing. Simply put, less backing means fewer accidents.

Since installing Backup Counters on all of my trucks over a year ago, we have had no backing accidents. I also think that this is making my drivers more aware of other safe driving practices. Feedback from others who have purchased the Backup Counter are the same as for me. The drivers are reducing their backups. I am convinced that this device is helping eliminate accidents.

We wanted to price the Backup Counter low so many could take advantage of this great safety device. It is priced at only $129.00 and available on our website at www.backupcounter.com

First Star Capital was able to finance 2 Brand New Isuzu Reach Vans for a Home Delivery Contractor out of the Carol Stream Terminal. Here is his story:

Rivera’s.com Courier Service operated 6 vehicles on their Home Delivery routes, but Luis needed a couple more to add to his growing business. Luis realized that the Reach Work Truck would fit his routes perfectly, and First Star Capital was able to quickly source and finance 2 Brand New Reach Vans for Luis. Here is what he had to say:

” I just wanted to thank you and your team for making this transaction for my company’s two new Isuzu Reach’s a pain free experience. Everything about the process was extremely straightforward and really fast considering the large purchase. In my past experience, dealing with financial institutions is not a comfortable experience when you start talking about the FedEx business model…but you and your company’s knowledge about our business…gives your company a leg up. Hopefully business continues to grow and you will hear from me about a new truck soon.” – Luis Rivera

First Star Capital is a resource for all FedEx Contractors. Whether you’re FedEx Ground P&D, FedEx Home Delivery, FedEx Ground Linehaul, or FedEx Custom Critical, we have competitive and customizable programs for your growing FedEx business.

For the most part delivery contractors have always preferred diesel vehicles over gas. Reasons such as, decent fuel mileage, “bullet-proof” engines, and cheaper to operate than gas vehicles, have been true for decades. But with a new crop of gasoline fueled work trucks, the traditional diesel platform is getting a run for its money.
In today’s work truck market we see much more variety than we have ever seen before. In a world that used to be dominated by diesel Freightliners and Workhorses, we now see manufacturers such as Chevrolet, Ford, Isuzu, and Nissan offering both gas and diesel options.

Are these gas work trucks just full of hot exhaust or are there reasons why they have become popular as of late? Let’s look at some pro’s and con’s of both gas and diesel vehicles.

Gas Vehicles

Gas Pros:

• Lower initial cost – Gas work trucks in the 1,000 – 1,200 cubic foot range tend to be $10,000 – $15,000 cheaper than their diesel alternatives.
• Lower maintenance cost – Gasoline engines are the most popular engine in the United States. Gasoline engines don’t need special mechanics or special parts to stay up and running. A Ford gas V-10 in a F59 P1000 is the same Ford gas V-10 in a consumer F-350.
• Noise – Gas engines tend to be quieter than diesel engines. For the average person that drives a couple of hours a day at the most this isn’t a big deal, but when your vehicle is your office and you are on delivery routes for 8-10 hours a day, engine noise is a difference maker.
• Fuel Prices – With the nationwide average of gas selling at $3.50/gallon and diesel at $3.80/gallon, it is becoming much cheaper to fill up on gas rather than diesel.

Gas Cons:

• Fuel Mileage – While gasoline engines have become more efficient over the years, they are still not as fuel efficient as diesel engines.
• Durability – Diesels are known for being “workhorses”. Gas motors have never been able to tick the odometer as high as a diesel engine. While advancements in technology have made gasoline engines more durable, diesels still take hard beatings the best.

Diesel Vehicles

Diesel Pros:

• Fuel Mileage – Diesels typically get 20%-30% better fuel efficiency than the average gas engine. This can be a huge $$$ saver when your delivery route is 150 miles a day!
• Durability – As mentioned before, diesels take a beating (and usually) keep on ticking.
• Torque – Diesel engines have the unique ability to move heavy loads without straining engines. While they will not win any top speed tests, diesels can move outrageous cargo loads slowly but surely.

Diesel Cons:

• Initial cost – Diesels can be pricey, with price tags about $10,000 – $15,000 higher than comparable gas vehicles.
• Maintenance cost – While diesels may not need as much work as gas engines, the work they do need can often be more expensive. Also newer diesel engines often require special additives to create cleaner emissions. This additive is fairly cheap in the grand scheme, but if that additive isn’t replaced when required, it effectively turns your $60,000 investment into a stationary storage unit, as the engines are programmed to not operate in the absence of the additive.

Whether it is gas or diesel, both engine options their up’s and down’s. It is up to you to figure out which works best for you and your business. Work Truck Direct makes available all the most popular Gas Work Trucks and Diesel Work Trucks, pick your poison.
Work Truck Direct is the vehicle sourcing division of First Star Capital. Whether it is a fleet of vehicles or single vehicle, Work Truck Direct can source it. We help commercial drivers and delivery contractors find the vehicles they need to operate their business and provide the industry’s best funding solutions to acquire the newest addition to your fleet.

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Keeping your borrowing information organized and at the ready is a key to receiving quick decisions from any lender.

For most leases under $75K, one-page credit application and a few months bank statements. However if you are looking for a higher dollar amount or a special circumstance arises, more information is often needed. To save time, frustration, and possible declines take a few steps each year to keep updated information at the ready.

At First Star Capital we look at applications at many different levels of preparedness. Having seen our fair share of applications, our initial screeners have a good idea of how far an application package will go based on how well prepared the application is.

The following is a list that Sam Thacker from Allbusiness.com has put together, with a synopsis from our own experiences at First Star Capital:

1. “Make sure all shareholders who own more than 20% of the company, know what their credit scores are.” Shareholders that own large portions of the organization (20% or more) should know about any negative characteristics on their personal credit. If these shareholders are not in the process of fixing these negative aspects of their credit, they should do so quickly. These negative marks on credit can become easy targets for lenders to focus on. Fixing these aspects or having an explanation as to their reason will be necessary for many transactions to get past initial screeners.
2. “Keep accurate and up to date business organization records available in one place.” Having easy access to organized business formation documents is a great way of streamlining the application process. Many lenders will not just take your word on how long you have been incorporated. In fact, most of them will a copy of state supplied documentation. Having these files at arm’s length will greatly reduce any questions as to the legitimacy of your company, and speed along the lending process.
3. “Keep good accounting records.” First Star Capital does not require financial/accounting records for deals under $75,000. However, for transactions that require larger lending amounts, financials are almost always required, and having detailed, organized, and audited accounting records will reduce many headaches in your borrowing future. The reports that are most commonly requested are Income Statement, Balance Sheet, Statement of Cash Flows, and Tax Returns.
4. “Have all shareholders who own more than 20% of the company, keep a personal financial statement up to date.” Personal financial statements for large stake holders in the organization are often just as important as their credit score. Typically up to date personal financial statements are best, but it is acceptable to receive some up to a year old.
5. “Management should keep busy.” Corporate information is easier than ever to retrieve. Management should make sure that all taxes and governmental reporting has been done properly and on time. Lenders initiating due diligence will quickly discover any discrepancies in these records, and will quickly disengage.

85% of all U.S. based companies are currently or have leased some sort of equipment to operate their daily business. Is your small business prepared when it needs to submit an application for a lease? Here is part one of two of a “Borrowing Checklist.”