Fuel advances are an ideal option when you are low on funds or at risk of experiencing cash flow problems. A fuel advance is a unique financing option that provides funding to cover fuel expenses when picking up a load. It can provide a truck driver with up to 40 percent of the freight bill. The following is a close look of the benefits of fuel advances.
1. Payment of Fuel
While traveling, truck drivers should focus on delivering their loads safe and on time. Of course, that should be their main concern. Nothing else. Unfortunately, access to sufficient fuel is often a close second in a list of concerns. “What if I ran out of gas? Where will I get money to refill?”
This is when fuel advances can be helpful. By providing funds for fuel, drivers can focus on what matters, safety. Eliminate anxiety. Fuel advances can be provided within hours of making a request.
2. Business Growth
Fuel advances can help grow a fleet business. They’re a great option when a trucking business is growing fast, but the funds are low. With fuel advances, a company can take on more loads without taking on more financial strain. The set-up for fuel advances is easy and quick.
3. Improved Cash Flow
Fuel advances are usually combined with a factoring program that is specific for a given driver or shipping and transportation company. The combination improves the liquidity of the company as it enhances predictable revenues. This puts fleeting businesses in a stable financial position. Hence, resulting in growth.
Furthermore, it saves the hassle of negotiating with freight shippers and brokers. And even if customers delay paying freight bills, owner-operators can still haul loads.