Take Your Trucking Company to the Next Level with Fuel Advances and Same-Day Payments
Fuel for a commercial truck costs on average about $70,000 a year. In fact, fuel is the number one operating cost for trucking companies, even exceeding drivers’ pay. If you run a trucking company you already know this, but consider how having fuel advances can greatly impact your growth. Would having a percentage of your money upfront allow you to deliver more loads? Would it take some pressure off of your cash flow? Would it enable you to grow your company faster?
What if you could get paid for your delivery in as little as 2 hours instead of 30 or 60 days? Would faster payments on your deliveries allow you to buy more trucks, keep your trucks maintained and on the road, make more deliveries, generate more revenue, and ultimately earn you more profit?
Fuel Advances When You Load and Payments On Deliveries In As Little As 2 Hours
By using factoring, you can get fuel advances as soon as you’ve loaded your truck, and full payment on your invoices less the factoring fee when you deliver the load. Plus, you can remove all the headaches of collecting on the invoices. The truck factoring company collects on the invoice and some factors even generate your invoices for you.
Let’s look at an example of how this can work with a transportation company that has 20 trucks in its fleet. If each truck has a $1,000 load, you can get 40% or $400 per truck as a fuel advance when your trucks get loaded. So that’s $400 per truck, per day or $8000 a day. Plus, once you deliver the loads, you receive the remaining 60% for each load, minus the factoring fee, in as little as two hours. In the span of a single day, with 20 trucks making $1,000 deliveries you can earn another $600 per truck or $12,000, less the 1% to 3% the factor charges. If you repeat the process over a 30-day period, that’s $600,000 you’ve brought in 30-days earlier than normal. You can invest the accelerated payments back into your trucking business by growing your fleet, increasing your number of runs, keeping your trucks maintained and on the road, or hiring more drivers.
In addition, many truck-factoring companies use the latest technology so you can account for everything online. If you’re interested in learning more about factoring, contact us with the particulars of your situation.