One of the advantages of working with a factoring company that specializes in factoring for other businesses in your industry is the availability of special features and services tailored to your needs. Many factoring companies that have worked with trucking companies for any length of time often include fuel advances as one of their funding methods. Fuel advances provide money for diesel fuel for truckers, often as much as 50% of the total freight bill amount.
Some factoring companies offer this funding as early as when a motor carrier picks up a load. However, some factoring companies steer clear of these advances to truckers before their freight is delivered and verified in case the load is delivered late or damaged. Freight can even be missing, leaving the factoring company at risk for the repayment of the fuel advance. However, the convenience makes them a popular alternative and a fast funding method for drivers who receive the fuel advances on their fuel cards.
Benefits of Fuel Advances
- Saves time and money
- Eliminates need for paper checks and express deliveries
- Enables clients to instantly monitor bank deposits