Paying for Fuel

I was thinking we are talking brokers. Not all give advances, now days, do they? This is what I thought based on my research. If you can draw cash for fuel on the load, then factoring makes little sense.

I plan to have $5,000 for fuel and repairs. I don't feel this is enough unless I can do some quick pay and get some fuel advances. I expect to spend $6,000 per month on fuel. I don't want all my cash tied up in fuel if I break down.

I don't want to factor if I don't have to either. I believe you have to do your best to figure out the least expensive way to leverage your cash. It isn't wise to factor at 5% if you can do advances or quick pay at 2%. But it isn't wise to have all your cash in fuel and have to wait for a check to cover repairs.

I plan to put a factoring solution in place and do my best to not use it or use it as little as possible. To me the most important thing is to have the cash or put it back quickly to free yourself of anything that takes a percentage of your revenue. You are correct about giving away part of such a small profit margin.

If I can get one good month I’ll be good to go. With what I will escrow for repairs, taxes, license and such I will be in good shape. Still I think back to my first truck, which was new, that broke down on the first trip and was down for ten days.

 

" If I can get one good month I'll be good to go." Then PRAY that you have the following 3 months just as GOOD.

Lots of good suggestive theory and ideas on these posts but the actual FACT is you better have the $ side covered before you start.


As for OP asking about fuel , get a FUEL CARD with a major supplier , you get monthly statement and a time period in which to pay it, just like the FLEETS get.

For EMERGENCY $ get a nationally accepted credit card, shop around for the lowest INTEREST rate and use it for EMERGENCIES and only EMERGENCIES.

 

To answer your post, I use American Express Business through COSTCO and I get 4% rebate at the end of the year for fuel purchases limit 75 gallons per purchase. I purchase fuel 3 seperate transactions but it's worth it. Anyway's, I pay American Express Business each month in FULL with NO finance charge's.

 

Dave, do you get cash price or pay more for using credit?

 

I go to fuel station's that have only ONE price for fuel, cash and credit is the same price.

 

Ok here's my question to you, why use a credit card to pay for fuel when you get about 6 cent less for cash?, fuel is your biggest investment in a truck, I have two credit cards, but dont use them for fuel, except in a last resort

 

I go to where CREDIT is the same as CASH and usually cheaper than truck stops. So im taking an additional 4% discount of my total fuel purchase, but Im not getting it back till the cycle period which in my case I average about a $600 to $700 a year in my pocket for nothing and NO finance charges cause I pay my bill in full each month.

 

A little off the subject, but still about fuel,

was talking to a friend, and he saw what i spend a week in fuel, and he said, WOW!, i thought the people you haul for pay for that?, I said, Nope, know you understand why i complain about fuel cost

 

Even if he was purchasing it from a truck stop and paying 6 cents a gallon extra in the long run its cheaper assuming he doesn't have a max amount from the card cash back. At the current price of gas even if only using $3 per gallon 4% would be 12 cents back per gallon. If you use $3.50 its 14 cents a gallon and $4.00 its 16 cents a gallon. In the long run it pays to use the credit card even if the prices are cheaper for cash as long as you ALWAYS pay the entire balance off and are getting more then 2% cash back for ALL gas purchased.