How Do Fuel Advances Work in Trucking?
Updated: Mar 16, 2020
Not all factoring companies offer a fuel advance option, but it is definitely worth finding one that does. Imagine picking up a load only to realize you don't have enough money on your fuel card to get to your drop-off destination. Fuel advances solve that problem - plus they are convenient to have as an option. Keep reading how fuel advances work in trucking and how they can benefit you!
What is a fuel advance?
A fuel advance provides funding to cover your fuel expenses that is funded directly onto your fuel card at the time you pick up the load. For drivers that are constantly taking on new loads and need a lot of fuel, fuel advances are a great way to go.
How do fuel advances work?
Depending on who you factor with, the percent of the advance varies. In most cases, the average fuel advance will provide you with around 40% of the load amount upfront - we go above that and provide you with 45% of the load! The advance happens within hours of the freight load being verified by your factor.
All you do is send your Rate Confirmation and BOL to your factor for them to verify, and you get your freight bill advanced. Once you drop off the load, you get the rest of your bill funded via your preferred funding method. It is important to keep in mind that there is an additional fee to get funded via fuel advance that your factoring company will charge.
Working with a factoring company that has a fuel advance option is great for growing your business. It is especially helpful for small to mid-sized carrier to avoid cash flow problems. Using fuel advances gives you peace of mind knowing you'll always have enough cash to pay for your fuel on time.
Other fuel card benefits we offer you:
$0.10+ savings per gallon at major chains throughout the country, like Pilot, Flying K, TA and Petro
$0.25+ off per gallon at over 1000 mom and pop locations
Ultra-fast paperless fuel advances of up to 45% of the load
Easy access to your factoring funds by getting them loaded directly onto your card
Able to manage your fuel usage and IFTA report through an online portal
No monthly fees