Let’s say for example, it’s the end of the month, bills are due and cash flow is a little tight. You’ve got a chance to take a good paying load. The only problem: you don’t have enough cash for the fuel needed to make the haul.
Some of your options:
- You could factor your load. This makes sense when cash flow is an ongoing problem, but when it’s just the cost of fuel that’s standing in the way, there may be a better option. When factoring the entire load, you pay a percentage of your total revenue to the freight factoring company, and that can add up.
- Some load providers will offer fuel advances, but you might not like the terms.
- Take a shorter haul, so you won't need as much fuel.
Fuel advances from freight factoring companies can help level the playing field for owner-operators and small trucking companies.
DAT’s freight factoring partner, Advance Business Capital, offers 50% fuel advances with a one-hour turnaround time, for a $15 flat fee. ABC also allows you to transfer the advance to their discount fuel card, which can improve your savings.
The quick response and easy terms allow you to accept good paying loads even when cash is tight, and that can make all the difference for your growing business.
Advance Business Capital is a DAT affiliated company.
Categories: Best Practices and Benchmarks