---
title: "Lease-on"
url: https://carrierkyc.com/glossary/lease-on
description: "Lease-on is an arrangement in which an owner-operator leases a truck, usually with a driver, to a motor carrier and hauls under that carrier's operating authority."
---

# Lease-on

**Definition:** Lease-on is an arrangement in which an owner-operator leases a truck, usually with a driver, to a motor carrier and hauls under that carrier's operating authority.

Also called: Leased-on owner-operator, Leased to a carrier. Category: FMCSA & freight.

Truth-in-leasing rules require a written lease between the authorized carrier and the equipment owner (49 CFR 376.12). It must state when it begins and ends and what the owner will be paid, and it must give the carrier exclusive possession, control and use of the equipment for its duration, with complete responsibility for its operation.

For a factor, the point is whose invoice it is. When an owner-operator is leased on, the motor carrier with the authority is usually the party billing the broker, and that carrier's name and USDOT appear on the bill of lading. A leased-on driver applying to factor broker invoices in its own name is a mismatch unless it holds its own active authority.

> **Red flag: Red flags** An applicant whose own USDOT shows no for-hire authority but whose invoices list it as the carrier. A BOL showing a different carrier than the one invoicing. A brand-new authority whose owner cites years of experience, which may be real lease-on history or may be a story.

Owner-operators who leave a lease and get their own authority are common new clients. Verify the new authority, insurance and bank account in the new entity's name, and see [is this carrier legit](https://carrierkyc.com/guides/is-this-carrier-legit).

## Related

- [Operating authority](https://carrierkyc.com/glossary/operating-authority)
- [USDOT number](https://carrierkyc.com/glossary/usdot-number)
- [Bill of lading (BOL)](https://carrierkyc.com/glossary/bill-of-lading)
- [How to tell if a carrier is legit (with a live FMCSA check)](https://carrierkyc.com/guides/is-this-carrier-legit)
- [Carrier risk check](https://carrierkyc.com/tools/carrier-check)

## Sources

- [49 CFR 376.12: Lease requirements](https://www.ecfr.gov/current/title-49/section-376.12) (eCFR)