Fuel card/factoring companys

5% of gross can easily be 25-50% of profit. For a fuel card, find one that has cost plus pricing like NASTC.

 

factoring and fuel cards? like a one stop shop? lol apparently loves does both

 

Most factoring companies supply their own branded fuel card. It offers convenience for you since they will fund invoices right to your fuel account. Sometimes there's a fuel discount involved, but usually nothing worth chasing after. It's also convenient for the factoring company as it gives them another list of fees to apply to your account when you use the fuel card or write checks off it.

If you must factor, fund ACH to your bank and use a good fuel program like .40 suggested. In addition, I'll second what AllowMe says. Why? If you're already solid on cash flow, factoring isn't going to do anything for you but cost money. Or maybe you're having problems? Lots of threads on here with recommendations on the topic. It can offer some relief for the right reasons. If you're getting behind on cash flow, you better stop that leak first before even thinking of factoring invoices. If you're running out of money now, factoring will just accelerate that.

 

Be careful when it comes to factoring. It sounds cheap but really isn't. Because you factor each transaction its harder to see what your APR actually is because all you see is the rate you are paying per transaction. So keep in mind when it comes to factoring a 6% fee on a 30 day receivable translates into an effective APR of 72%.

Thats as bad as a payday loan when you do the math.

 

FleetOne charges me $2.50 per swipe, I quickly put that to bed, not trying to get nickel and dimed when im thinking quarters and dollars. The company I went with has a fuel discount card, but its only at certain locations, not mom and pop stops ya know

 

When you factor you are paying lets say 5%if you factor a large amount,,since you are small you will most likely pay 7% to get your money 3 to 4 weeks faster, at 7% you are paying 84% APR,, non recourse only if they approve the company,,not a good deal

 

You can find 3-4% factoring and they have other benefits you would have to otherwise pay for yourself. Or you can do quick pay with brokers for 1.5-5% which to me is the same thing as factoring. Factoring is not the first choice I would make but it can help if you're hauling for direct customers that have longer payment terms than you can float. I'm sure some guys on here are going to say that they either pay in 30 days or else but there are some companies that's will pay good rates but take a long time to pay for whatever reason and if you press them they'll just tell you to pound sand.

I would recommend NASTC fuel card. Good discounts, limited network so make sure it works for where you run because if you fuel out of network too much they'll kick you out of the program I was told.

Good luck!

 

Non recourse is a term most factoring companies use to suck you in. The truth is it's just BS in the contract it states you must do so much revenue with that customer before they qualify. I know lots of guys that factor all there loads one I was talking to the other night he pays $17.50 to next day air his paper work than they charge $12.50 to direct deposit the money into his account.
I do have another buddy that uses a place he scans his BOL when he picks up the load and paid just a few hours later I know he said he pays 3.5% and had one customer not pay they pulled $50 out each time until the money was paid back he said all his paper work is scanned the only time they need originals if they can't read it.

I did get setup with steelhead but only used them on 3 invoices was just a joke they would only factor invoices that had a rate confirmation I do not require my direct customers to do one so unless I started they wouldn't except them tickets the two broker loads I sent in they started a 45 day countdown from the day the rate sheet was signed. One I signed three days before the load was picked up on a Friday and did not drop until Tuesday by the time I sent it in next day air they billed the broker and left out reg mail so the broker received it on 14 days after I signed the rate sheet add there 30days to that than the time it gets put in the mail I was over my 45 day grace period so I than was charged 5% more and I'm sure things have not changed much.

When I had all my trucks running I started doing things different there are lots of brokers that offer 1.5% in 24 hours like LS,CHR and even mercer I would do one or two loads a week thru one of these to keep cash flow up and make payroll...you may also check with your bank and see about getting a line of credit, but I'd stay away from factoring