Managing fuel expenses while maintaining steady cashflow ranks among the biggest challenges carriers face. When fuel costs spike or payment delays stretch longer than expected, even profitable loads can strain your finances. OTR Solutions understands these pressures and offers fuel credit to help carriers fuel now and pay later.
Fuel credit provides carriers access to fuel funding without upfront payment, allowing you to keep trucks moving while preserving cashflow for other essential expenses. In this article, we’ll explore how fuel credit works, who qualifies, and the key benefits for your trucking operation.
Key Takeaways:
- Fuel credit eliminates upfront fuel costs – preserving cashflow for maintenance, permits, and unexpected expenses while keeping trucks moving during payment delays.
- Weekly payment schedules match trucking income patterns – pay when revenue arrives instead of rigid monthly statements that don’t align with your earnings.
- No credit checks make fuel credit accessible to new carriers – get approved based on a factoring relationship rather than credit history, opening doors for new authorities and rebuilding operations.
- Combined savings and flexibility maximize profitability – access fuel discounts while maintaining operational freedom to take profitable loads without upfront fuel costs.
What is a Fuel Card Line of Credit?
Fuel credit lets carriers purchase fuel on credit terms rather than paying up front at the pump. You get approved credit limits for fuel purchases, with repayment scheduled around your business’s cashflow patterns.
Unlike prepaid fuel cards, credit options give you immediate access to fuel funding. This differs from personal credit cards by offering trucking-specific benefits like fuel discounts and spending controls built for commercial operations.
How Does Fuel Credit Work?
Fuel credit works by providing you with a pre-approved credit line specifically for fuel purchases. When you swipe your card at the pump, the fuel cost is charged to your credit line rather than requiring immediate payment. You then repay the balance according to your chosen weekly schedule, typically using funds from your factored invoices.
Consolidated Spending
Your fuel credit creates one centralized account for fuel and truck maintenance expenses across your fleet. This approach simplifies expense tracking and gives you better visibility into fuel costs compared to juggling multiple payment methods.
Payment Terms & Budgeting
OTR’s fuel credit offers weekly repayment cycles that work with trucking cashflow. Rather than waiting for monthly statements, you schedule payments around your revenue, making it easier to manage expenses as income arrives from completed loads.
Expense Controls
Set spending limits per driver or vehicle to prevent misuse and stay within budget. These controls keep fuel credit focused on legitimate business expenses while giving you flexibility to adjust limits based on your needs.
Building Business Credit
Some fuel card credit providers report payments to business credit bureaus, which can help establish and improve your business credit profile over time. However, OTR’s fuel credit focuses on accessibility rather than credit building, making it available without credit checks for factoring clients.
Who Qualifies for Fuel Credit?
Most fuel card credit programs require an established business entity with consistent operations. Traditional providers evaluate fleet size, operational history, and financial stability when determining eligibility. Many require credit checks or security deposits, especially for newer carriers.
General qualification requirements include:
- Active business registration and DOT number
- Consistent operational history
- Financial stability documentation
- Credit checks or security deposits for most providers
However, some providers offer more accessible qualification requirements. OTR Solutions factoring clients can access fuel credit without credit checks, making it available to new authorities and carriers regardless of their credit history.
The key difference lies in how providers assess risk. Established carriers with strong credit histories qualify for higher limits and better terms, while newer authorities may face restrictions or need additional documentation to demonstrate business viability.
Key Benefits of a Fuel Card Line of Credit
Fuel credit offers several advantages that can make a real difference in your daily operations and bottom line. Here are the key benefits that matter most to carriers.
Better Cashflow Management
Fuel credit bridges the gap between fuel expenses and invoice payments. Instead of tying up working capital at the pump, you preserve cash for other critical expenses like maintenance, permits, or unexpected repairs while keeping trucks moving.
Fuel Discounts & Savings
Access exclusive fuel discounts that save significant money over time. OTR Fuel Card users enjoy average savings of $0.50 per gallon with discounts reaching up to $2.25 per gallon at select locations.
Enhanced Security
Fuel cards provide better fraud protection than personal credit cards or cash transactions. Driver restrictions and transaction monitoring help prevent unauthorized use while providing detailed records for every purchase.
Detailed Reporting & Tax Support
Transaction data simplifies expense tracking and supports tax preparation. Many fuel card programs provide detailed reports for IFTA reporting and business expense documentation, saving time during tax season.
Operational Flexibility
Reliable fuel credit access helps carriers take advantage of profitable loads without worrying about upfront fuel costs. This flexibility can be the difference between accepting a good-paying load and passing it up due to cashflow constraints.
Things to Consider Before Applying
Before signing up for just any fuel credit program, carefully weigh these factors when comparing providers.
- Fees: Many providers charge subscription fees, late fees, or transaction costs that can add up quickly.
- Credit Requirements: Traditional fuel credit programs often require extensive credit checks or security deposits.
- Card Network Coverage: Ensure the provider’s network aligns with your typical routes and preferred fuel stops.
Credit requirements vary significantly between fuel credit providers. While many traditional companies require extensive credit checks and financial documentation, others, like our program here at OTR, focus more on operational stability and your factoring relationship. Consider your current credit situation and business needs when evaluating different options to find the program that works best for your operation.
Smarter Fueling With OTR Solutions
Fuel credit helps carriers manage expenses, improve cashflow, and save on fuel costs while maintaining operational flexibility. When you combine fuel credit with factoring services, you create a powerful cashflow management system that keeps your operation running smoothly.
OTR’s fuel credit eliminates credit check requirements for factoring clients while providing weekly billing that works with trucking cashflow patterns. You can pay your fuel credit balance directly with your factored invoices, creating seamless coordination between your fuel expenses and revenue.
This combination of accessibility and flexibility makes it easier to keep trucks moving without cashflow disruptions, while still enjoying average savings of $0.50 per gallon at 2,500+ in-network locations.
Apply today to keep your trucks moving without cashflow disruptions.
FAQs About Fuel Credit
What is the difference between a prepaid fuel card and fuel credit?
Prepaid fuel cards require you to load money before making purchases, while fuel credit allows you to purchase fuel first and pay later according to your billing cycle. Credit options provide better cashflow flexibility but may include fees or qualification requirements.
Does fuel credit affect my business credit?
Sometimes. On-time payments can help build your business credit, while late payments may hurt it, but this depends on whether the provider reports to business credit bureaus. Many fuel card providers don’t report payment activity to credit agencies, so it’s important to ask about their reporting practices if building credit is a priority for your business.
Can owner-operators qualify for fuel credit?
Yes, many owner-operators can qualify for fuel card credit programs. OTR makes it especially accessible for factoring clients by eliminating credit check requirements. Requirements vary by provider, but factors like operational history and business registration typically influence approval decisions more than fleet size.
What expenses can I use fuel credit for?
Most fuel card credit programs cover fuel purchases and may extend to truck stop services like DEF, lubricants, and maintenance items. Some cards also work for food, showers, and other driver amenities, though spending controls can limit these purchases if desired.
How does OTR fuel credit compare to other providers?
OTR fuel credit stands out by eliminating credit check requirements for factoring clients and offering weekly billing cycles that work with trucking cashflow. Combined with fuel savings averaging $0.50 per gallon and access to 2,500+ in-network locations with $0 transaction fees, it provides both accessibility and value for carriers.