All glossary terms

Glossary

Escrow (in trucking financing)

Money withheld from each settlement to cover future maintenance, taxes, or insurance. Common in lease-purchase agreements.

In trucking, escrow usually refers to a recurring deduction from your settlement that's held in an account to pay for future expenses — most often heavy maintenance, plates, IRP renewals, or insurance premiums. Leased operators frequently have $50-100/week deducted into escrow. It's not a cost in the traditional sense (the money comes back to you as expenses), but it affects weekly cash flow. Track it as a recurring fixed cost with weekly cadence in your P&L.

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