Fuel Advances for Trucking Companies: Features and Benefits
The battle against unreliable cash flow is common in the freight industry. Slow-paying clients not only mean less money for urgent business expenses like payroll and fleet maintenance, but they can also slow down your existing business and prevent you from taking on new and potentially profitable jobs.
Picture this: A high-paying job is offered to your company – you need to get on the road as soon as possible, but you’re previous clients haven’t paid you, and now you can’t afford to fuel up. Fuel is one of the most important resources for your trucking company. However, it is also the most expensive, which is why the cost of fuel weighs heavily on many owner-operators, especially owners of smaller fleets in their initial growth stages.
A fuel advance from your factoring company may be the perfect solution to get you back on the road and smiling behind the wheel as soon as possible. Fuel advances are financing options that some factoring companies offer, which allow you to receive an advance on your fuel costs, among other helpful benefits. So, how can a fuel advance help your business? Let’s see.
Immediate Access to Funds
Freight factoring companies know the challenges of the trucking industry, and they know that you need to cover fuel expenses as soon as they arise. This is why the majority of companies offering fuel advance programs prioritize 24/7 access to the service and immediate funding. You can avoid operational delays or disruptions caused by limited cash flow because the money will typically be sent to your bank account (or loaded onto your fuel card, depending on your preference) as soon as the factor receives confirmation that you have picked up the load.
Fuel advance programs are a highly flexible form of funding, with many factoring companies offering no minimums, no setup fees, and no need for long-term contracts, allowing you access to financing that suits your specific needs and budget.
No matter what size your load is, the factoring company can help you get ahead of your fuel costs by providing cash upon pickup so that you won’t have to sacrifice large loads. In addition, these programs often go hand in hand with fuel card systems that can save you money at the pump.
Easy Application and Approval Process
Fuel is an essential (and often urgent) expense for businesses within the transportation industry, which is why the application and approval processes have been created to be streamlined, easy, and fast. The payout process continues the trend of simplicity with only three easy steps:
No Collateral Required
The need for collateral is what prevents many businesses, especially startups and those still growing, from gaining access to the funds they desperately need to operate. Fuel advances, however, typically don’t require collateral, making them a more accessible and convenient financing option.
Choose the Loads You Want
With a fuel advance, you no longer need to turn down high-paying loads or settle for smaller ones just because you’re stuck waiting for slow-paying clients. Both factoring and fuel advance programs help give you access to the funding you need to build a profitable business. You can manage your trucking company a lot easier with a steady, stable income and accept as many loads as you want in complete confidence that you’ll be able to cover all the associated costs.
It’s important to note that not all factoring companies offer fuel advances, so be sure to do your research into what additional programs your factoring company may offer. Our Factoring Guide can help you learn everything you need to know in order to find and compare the best factoring companies and their offerings.
Contact Factoring Companies Canada today and tell us what you’re looking for, and we will help you find the right factor for your unique business needs.