Running a truck or a small fleet is very expensive. The cost of fuel, which must be bought effectively, is one of the biggest expenses for fleet owners. Keeping your units fueled up can be difficult. Many shippers and brokers don’t offer quick pays. Instead, they pay their invoices in 30 to 60 days.
Most owner-operators and small fleet owners can’t wait 30 to 60 days to get their invoices paid. They need money sooner to pay their company’s expenses and pull more loads. You can solve this problem by working with a factoring company that offers a fuel advance program.
Fuel advances provide you with funds as soon as you pick up the load. You can use the money to buy fuel and pay other expenses. For additional information, please read “How Does Fuel Advance Factoring Work?”
Fuel advances have the following benefits:
Benefit #1: Help owner-operators and small fleets
Fuel advances are designed specifically for owner-operators and small fleet owners who don’t have a large cash reserve. Qualifying for a fuel advance program is relatively simple and can be done quickly. It has the same requirements as a conventional freight factoring program.
Benefit #2: Allow you to take on more loads
The greatest advantage of the plan is that it enables you to take on more loads. Lack of funds won’t be a barrier to growing your business any longer. Additionally, fuel advances also save you from having to haggle with freight brokers or shippers for an advance. Instead, you get predictable funds from the factoring company.
Benefit #3: Can be used for any business expense
Although the program refers to them as ‘fuel advances,’ the funds can typically be used for any legitimate business purpose. You can use them to pay drivers, repair your truck, etc. Note that this varies by factoring company.
Benefit #4: Improve your cash flow
Fuel advances are combined with factoring programs that are specifically designed for carriers. The combination of fuel advances and freight factoring provides additional funding and improves your cash flow. It provides predictable revenues, which puts you on a stable financial footing and helps you grow your company.
Learn more: Read “What is freight factoring?”
Benefit #5: Work with fuel cards
The funds advanced for fuel expenses can be deposited directly into your fuel card account. This option gives you additional flexibility on how to use and distribute the funds.
Benefit #6: Can be obtained quickly
Most factoring lines and their fuel advance add-ons can be obtained quickly. Most factoring companies can set up your line in a couple of days if you promptly submit all the required information.
Benefit #7: Additional services
Many freight factoring companies bundle several services into their carrier programs. In addition to fuel advances, many offer fuel cards, load boards, dispatch services, etc. These services are valuable for new owner-operators that are growing their companies.
Do you need help paying for fuel?
We are a leading factoring company and can provide you with a competitive fuel advance plan. For information, please get an online quote or call (877) 300 3258 to speak with an expert.