Though an electric future may be on the horizon, today’s trucking fleets can’t begin their journey without diesel fuel. Despite advances in technology, semi-trucks have barely decreased their fuel consumption through the decades. In fact, average efficiency has only improved from 5.6 miles per gallon to 6.5 since 1973.
Fuel consistently represents the largest expense for a trucking operation. The average truck consumes between $50,000 and $75,000 of diesel per year. What’s worse is that if a truck isn’t using fuel, it’s not earning money. This can cause serious issues for fleets that lack the cash on hand to take on the fuel expenses for new loads. After all, it takes more than pocket change to fill the tank on a semi.
Many trucking companies face fuel woes, even with the most well-prepared planning. Diesel fluctuations are constant, and a large price jump can make or break a budget. The cost of fuel can be the key factor holding back a trucking fleet from taking on the loads they need for growth.
Fortunately, EZ Freight Factoring has diesel fuel programs in place to help keep those wheels turning. With our fuel advance program and fuel cards, diesel expenses will no longer prevent your fleet from taking on new loads and growing your business. Read on to determine if our diesel fuel programs are right to help move your business forward.
Fuel Advance Program
EZ Freight Factoring’s fuel advance program solves the diesel dilemma for trucking fleets short on cash. No longer will the costs of running your business prevent you from running your business! Choosing to use invoice factoring through EZ Freight Factoring is choosing the affordable route.
The key to our fuel advance program, and the detail that sets it apart from traditional factoring, is that it gets you the cash you need prior to delivering a load. Through this program, you’ll be able to receive up to 50% of your freight bill paid up front. Here’s a quick rundown of how it works:
- First, your trucking company needs to show the factor proof of two things; that the load has been booked and that it has been picked up. A rate confirmation sheet works as proof of booking and a bill of lading serves as proof of pickup.
- The factor will then verify your documents to approve your funding. Once approved, up to 50% of your factored invoice will be available to you within hours. You can access the money through a bank account or a fuel card; the choice is yours!
- Once you’ve completed delivery of the factored load, you’ll be able to receive the remainder of your funds. Just submit your invoice as you normally would, and your factor will deliver your remaining cash.
That’s it! The fuel advance program is a simple, effective way to keep your fleet on the road and earning money. It’s inexpensive, flexible and just as easy as a typical factoring deal.
Fuel Discount Cards
Fuel cards are another excellent tool for trucking fleets. They allow access to diesel fuel discount programs at truck stops and travel centers throughout the US and Canada. A fuel card works much like a debit card and offers a whole range of benefits to those who use one.
Fuel discounts
What’s better than cheap fuel? Many fuel cards offer significant discounts on every gallon of diesel you purchase. When considering fuel card options, be sure to find out which gas stations offer discounts and how much those discounts are. Make certain that your discount program is accepted at your preferred fueling spot. Also be sure that your card doesn’t exclude you from the cash price for fuel. After all, what good is a discount if it’s on a higher price!
24/7 online account access
Trucking is a profession that doesn’t keep regular business hours, so it’s important that your fuel card account can be accessed at any time. With 24/7 online account access, you’re able to make changes to your account at any time.
What does 24/7 account access allow you to do? You can transfer funds to different cards in your fleet, getting money to the drivers that need it. Online account access also allows you to control and monitor spending across your fleet digitally. That means no more lost fuel receipts tying up your accounting process.
ATM access
As stated before, fuel cards function just like debit cards. Because of that, you can use your fuel card to access cash at most ATM’s. In addition, some fuel cards also allow for cash withdrawals at participating truck stops. Fuel cards make it very easy to get money to the drivers who need it, covering those unexpected expenses without downtime.
Fraud prevention
Financial fraud is becoming more and more common. Fuel cards provide a layer of payment security because they require a PIN or secondary authentication when used. Creating custom account settings can also serve as a second layer of security. For example, your fuel card can be limited to only purchasing diesel fuel. You can even limit the number of daily fill ups. This could come in handy should a driver forget their card at a gas station and someone else tries to use it.
Rewards and bonuses
Many fuel cards include reward and bonus programs for their use. Points can be earned by drivers and redeemed for things like meals, supplies or showers. Different cards will offer different bonus programs, so be sure to choose one that best fits the needs of your fleet.
Additional discounts
The discounts don’t end with diesel. Many cards offer discounts on the items most important to truckers. There are discounts available for maintenance items like tires and oil. Some cards even offer discounts on things like lodging, tolls and scales. Many fuel card users aren’t aware of all the additional perks offered by their card company. Be sure to check your account details to learn about any cardmember benefits you aren’t utilizing.
Factoring to Fuel Your Trucking Business
Running a trucking business is costly. Having access to working capital is crucial to the success of your business. Taking on new loads just isn’t possible without it. You’ll need to pay for the fuel to deliver the cargo and money for driver expenses along the way. Maintenance and repair expenses also continually eat away at any cash on hand.
Unfortunately, getting the funds you need to keep the wheels turning isn’t always the easiest task. If you’re lucky, you’ll get paid by your client when your load is delivered. That isn’t usually the case. Many customers take 30, 60 or even 90 days to pay their invoices.
That’s the beauty of factoring; there’s no more waiting to get the cash you’ve earned. No longer is a slow client an excuse to slow down your operations. Factoring allows trucking businesses to be paid within hours for the work they’ve already done, providing the funds necessary to take on new clients and grow their business.
For firms who are already factoring but need access to cash prior to delivering the next load, call us to learn more about our fuel advance program. It’s just one more tool from Easy Freight Factoring to make your job easier. At EZF, we keep business rolling.