Trucking business plan template for the Philippines

Executive summary

Example: [Business name] Trucking will haul [construction materials, farm produce, retail goods] for [clients] between [origin] and [destinations] using [number] [6-wheeler, 10-wheeler, aluminum van] trucks. Owner: [name], [sole proprietor or corporation]. The first [number] trucks will be [bought outright or financed through bank].

Capital: ₱____ for the trucks or their down payment, insurance, franchise application, registration, and working capital for fuel and wages until clients pay. Owner ₱____; financing ₱____.

Clients, routes and competition

Fill in: Clients we have spoken to: [names or types], who move [cargo] [frequency] between [points]. Letters of intent or contracts: [number]. Payment terms they expect: [days]. Trucking cash flow lives on these terms, so write them in.

Competitors: [trucking firms, owner-drivers, a client's own fleet]. For each, the rate per trip for a comparable route if a client shared it on [date]. Your angle: [reliable schedule, GPS tracking, a truck type others lack]. Do not borrow national freight volumes for this section.

Franchise and registration

Under LTFRB MC 2004-043, owners or operators of trucks or aluminum vans used for hire must secure a Certificate of Public Convenience to operate a truck-for-hire service. MC 98-027 also requires owners of dump trucks, cargo trucks and other private vehicles rented out for a fee to secure franchises from the Board.^[3,4]

Every motor vehicle used on public highways must be properly registered with LTO. When the franchise is renewed, LTFRB confirms each unit for LTO registration as for hire; a 2022 LTFRB services listing posted by the Bataan provincial government shows ₱40 for confirmation plus ₱40 for franchise verification.^[6,5]

If a truck is financed, LTFRB MC 2004-022 asks franchise applicants to attach the lender's written consent and the recorded chattel mortgage. Ask your bank for these documents when you sign the loan.^[8]

Register the business itself as well. DTI charges ₱200 for a barangay-scope business name, ₱500 for city or municipality scope, ₱1,000 for regional and ₱2,000 for national, plus a ₱30 documentary stamp tax on any of them. BIR stopped collecting the ₱500 Annual Registration Fee from 22 January 2024, so registering with BIR adds no registration fee to the budget.^[1,2]

Operations

Fleet. Truck type, plate, year, capacity, financing status. Drivers and helpers. [Number] per truck, pay as [per trip ₱____ or monthly ₱____].

Driver training. LTFRB MC 2024-040 created a Driver's and Conductor's Academy that is a prerequisite for franchise renewal, phased in with buses and trucks first. The enrollment fee is ₱2,000 per participant.^[7]

Maintenance. Preventive maintenance every [km or period], tyres, and a log per truck. Dispatch. Trip sheet with load, route, fuel, tolls and delivery receipt signed by the client.

Financial plan

Start-up. Trucks [number] × ₱____ or down payment ₱____; insurance ₱____; LTO registration ₱____; CPC application ₱____; garage or yard deposit ₱____; GPS units ₱____; DTI name ₱500 or ₱1,000 plus ₱30 stamp tax; mayor's permit ₱____; driver academy ₱2,000 × [drivers]; working capital ₱____.^[1,7]

At franchise renewal (2022 listing). Filing fee ₱520; inspection ₱100 per truck for hire; unit confirmation ₱40 plus ₱40 franchise verification.^[5]

Per trip and monthly. Fuel ₱____ per km × km; tolls ₱____; driver and helper pay ₱____; truck loan ₱____ per month; maintenance reserve ₱____ per km. Revenue = trips per month [number] × rate ₱____. Cash gap = days clients take to pay × daily costs.

Risks

Late client payments. Credit terms in writing and a working-capital reserve. Breakdown on the road. Maintenance schedule and a roadside contact. Franchise lapse. Calendar the renewal and the academy course before it. Accidents. Insurance, trained drivers and trip logs.

Franchise, permit and registration costs: trucking

Questions people ask

Do I need an LTFRB franchise for my truck?

If the truck is used for hire, yes: LTFRB MC 2004-043 requires a Certificate of Public Convenience for truck-for-hire service.

How much is the LTFRB renewal fee for trucks?

A 2022 LTFRB listing shows a ₱520 filing fee and ₱100 inspection per truck for hire. Confirm current amounts with LTFRB.

Can I use a financed truck for my franchise?

Yes, with the lender's written consent and the recorded chattel mortgage attached, under LTFRB MC 2004-022.

What is the LTFRB driver academy fee?

₱2,000 per participant, as reported for MC 2024-040, which makes the course a prerequisite for franchise renewal.