How Freight Factoring Can Improve Fuel Purchasing Power

Fueling up is just part of the gig in the trucking industry. It’s a necessary expense and therefore a huge opportunity for improving strategy and reducing spend when trucking companies approach fuel purchasing from the right angles. Freight factoring is a great way to improve fuel purchasing power and reduce fuel costs. Here, you’ll find # ways factoring can help.

Fuel Card Programs

The most obvious ways that factoring can help improve fuel purchasing power lie in how factoring companies directly help trucking companies purchase fuel. Fuel card programs like the one Express Freight Finance offers can help truckers get the fuel they need while they’re out on the road and save money at the same time, but they’re not all created equal. Our program spans more than 6,800 truck stops nationwide and companies can expect savings of $0.28 per gallon.

Interested in learning more about Express Freight Finance’s fuel card program? Reach out to a representative at 877.697.0605 to learn more and find out if our fuel card program is right for your trucking business.

Fuel Advances

Especially in today’s tough freight market, sometimes expenses can get out of hand and it can be difficult to make ends meet. For trucking companies in a tight spot, fuel advances can help keep the wheels turning to keep revenue coming in. Learn more about Express Freight Finance’s fuel advance program here. Express Freight Finance makes it easy to get access to funds for fuel when outstanding invoices are putting a crimp in your cash flow.

Immediate Access to Cash

Freight factoring converts your accounts receivable into immediate cash. This means you don’t have to wait for 30, 60, or even 90 days to get paid for your services. With the cash readily available, you can negotiate better deals with fuel suppliers or take advantage of early payment discounts, which can lead to significant savings on fuel costs.DropPay by Express Freight Finance offers instant payments upon delivery, 24/7, every single day of the year. You can learn more about how DropPay works here and fill out the form to get started or you can call us directly at 855.DROP.PAY.

Potential for Volume Discounts

Bulk fuel purchases oftentimes come with a discount and there may be even further savings on delivery charges when you buy in bulk and need fewer deliveries. With the immediate cash from freight factoring, trucking companies can buy fuel in larger quantities and potentially reduce the cash spent per gallon of fuel.

Budget Stability

We all know that cash flow is critical in successful trucking operations. Freight factoring offers steady cash flow since trucking companies can more easily predict when they’ll be paid for loads and plan accordingly. Knowing that you have the funds to cover fuel expenses can help avoid the stress of fluctuating cash flow due to delayed payments.

Investment in Technologies

The immediate capital from freight factoring can be invested in fuel-efficient technologies for your fleet. Upgrading to more fuel-efficient vehicles or investing in aerodynamic modifications can reduce fuel consumption, leading to long-term savings.

Freight factoring companies may also provide access to other strategic technologies that can help trucking companies win more business and increase revenue. For example, Express Freight Finance offers their customers access to MarketFit, which provides up-to-date lane data that’s easy to read and makes execution of a money-making strategy simple.

Hedging Against Fuel Price Volatility

Once again, cash flow is king. With the cash on hand from freight factoring, trucking companies can hedge against fuel price volatility. This could involve locking in fuel prices for a period or investing in fuel futures contracts, providing protection against sudden price increases.

Improved Credit Standing

With steady cash flow that comes along with freight factoring, it’s easier to get the bills paid on time and to gain access to other types of credit thanks to a solid credit history. Consistent cash flow from freight factoring can improve your company’s creditworthiness. A better credit rating can help companies lock in better rates on fuel contracts, business loans, and equipment purchases.

Conclusion

In conclusion, freight factoring can be a powerful tool for trucking companies looking to improve their fuel purchasing power. By providing immediate access to cash, enabling bulk purchases, and offering fuel card programs, factoring can lead to significant fuel cost savings. Additionally, the improved financial stability and credit standing can open up new opportunities for better fuel deals and investments in technologies. For trucking companies aiming to optimize their operations and reduce fuel expenses, freight factoring is certainly worth considering.