Running a truck or a small fleet can be very expensive. Aside from paying drivers, the biggest expense that you often deal with is the cost of fuel (which must be bought effectively). Keeping your units fueled up can be difficult – especially if you work with shippers or brokers who do not offer quick-pays. Most owner-operators and small fleet owners can’t afford to wait 30 to 60 days for payments. They need money sooner to pay their expenses and pull more loads.
A way to solve this problem is to find a factoring company with a fuel advance program. This program provides 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 lot of money – or time. Qualifying for a fuel advance program is relative 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 – even if you are low on funds. 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: Improve your cash flow
A fuel advance is combined with a factoring program that is specific for carriers. Overall, this combination improves your cash flow and provides you with predictable revenues. It puts you on a stable financial footing, which helps you grow your company. You can get more details about freight factoring by reading this article.
Benefit #4: 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 #5: Work with factoring lines to grow with your business
Fuel factoring advances come as an add-on to conventional factoring lines. The size of the factoring line is determined by the dollar value of your invoices and the credit quality of your shippers/brokers. The line is flexible and can increase, allowing you to haul more loads and grow your trucking business.
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.