How long does it take a broker to pay

Fuel cards factoring companies offer are a new deal in their own. Sometimes they're nothing but a gimmick others they can actually be beneficial.

Truck drivers have a few options to pay for our fuel. Fuel cards, t-check/comchek, cash, check or credit card. Factoring companies have deals with fuel card companies because they know fuel is our biggest expense. If you chose to use a factoring companies fuel card they mail a card out to you, and load the money for your paid invoices onto your fuel card. A fee is imposed usually minimal or so most think. My card load fee is $5. There is also a fee charged for swiping the card at the pump. So before I even put fuel in my tractor for me personally it costs me 5.25. My fuel card is ONLY accepted at PFJ and I save something like .12/gallon. Cash price plus .07/gallon off. Times 200 gallons. Saves me $24/fill up given I put $800 of fuel in my truck. Some factoring companies have better deals on fuel cards than others I don't think to highly of my card or my factoring company for that matter. Also the fuel cards they offer are DEBIT not CREDIT. So if there is NO money on the fuel card you cannot get fuel. That's the way it works. Is a credit type fuel card worth it eh depends on who you ask. Usually the credit line fuel cards have 7 day pay terms and have a $3500 limit on the fuel you can purchase in a 7 day period. That is fine if you have a truck that is fuel efficient. If you run a lot of miles though and only get 5mpg you're going to run up that $3500 limit real quick. Or if you end up fueling at a place where diesel is 4.30/gallon cough couch California. You run up that $3500 quickly. Not to mention its net 7 for pay terms most of the time. Which really puts a hurt on your cash flow as well.

I do know I have recieved an email from one factoring company that advertised having .50/gallon discounts on fuel. I am unaware of where the discounts were and what fuel stop you have to stop at to get that kind of discount however it was a lucrative way to get you hooked. I never person ally talked to them looking back maybe I should have. But that is a huge discount for an owner operator and a way to cut their cost.

Fuel cards being offered by factoring companies is simply another way to supposedly help cash flow and save a truck driver money. Some cards can be used for services, and used at an ATM for cash withdraws etc. Just depends on the card and how its set up. I currently just use comcheks to pay for my fuel. Its time consuming but the company I pull for uses them I don't mind and I get the cash price. Problem is it takes about 45 minutes as it seems most have forgot how a comchek works. Oh well 15 for fuel and there's my half hour break. Works for me.

 

"Crucifixion." Nice thought, and a great visual. I can't imagine why anyone would give a broker (or anyone else) their banking information. Yow.

 

Sure. You can negotiate payment terms with anyone. Nobody will just offer fast payment. That is, unless there's something wrong like a negative credit rating or risky cargo.