Reason #2: Fuel Advances
Fuel Advances follow Fuel Cards as the next discussion topic, and are the 2nd of the “5 reasons why Factoring is so important to Truckers” and Trucking as an industry.
Why are Fuel Advances important as it relates to Factoring? Because ONLY in the transportation industry do Factors advance funds before a service is actually executed, delivered, and accepted. In no other industry do Factors do this for their clients.
We do this for small trucking companies because companies like mine, ei Funding, understand the high out-of-pocket costs truckers incur – in this case several hundred dollars in diesel fuel – that are necessary in order to operate, complete, and deliver a haul. It’s normal in almost any business to have to put money upfront to operate – for inventory, hiring personnel, purchasing raw materials, etc., but only in trucking does the Factor advance funds to its client before the service has actually been performed. This is unique to trucking and Factors and happens nowhere else.
Fuel advances can be made directly to a trucker’s bank account or loaded to a Fuel Card. Obviously, you don’t need a fuel card to receive a fuel advance, but by combining advances to fuel cards Factors create an even more positive situation for their trucker clients where now, they are able to take advantage of innumerable benefits ranging from the already mentioned discounts, easier control of expenses, and the tracking of information for state fuel tax reporting, just to name a few. By advancing to fuel cards, Factors are ‘turbo-charging’ the benefits they provide to their trucking company clients.
In summary, the 2nd truth to why Factoring is so important to small trucking company clients relates to Fuel Advances, something Factors provide to no other client category other than trucking. That’s a pretty unique distinction, if you ask me, and is one more reason why Factors, like ei Funding and Truckers, make such good long-term partners.