Convoy Launches Factoring and Fuel Card to Carriers Nationwide
Press Release • Published on August 11, 2020
Today we are introducing Convoy Factoring, powered by Apex Capital, a new payment service for carriers that provides same or next day payment, with no hidden fees and no lock-in contracts. We now offer qualified carriers access to immediate payment, at a rate of 0% with QuickPay for Convoy loads and 1% – 2.99% with factoring for non-Convoy loads. A carrier hauling half of their loads with Convoy sees an average rate of 1.45%, which is 57% better than the industry average, saving them $7,000 in factoring costs and associated fees. Additionally, we are launching a new fuel card which helps address the single biggest cost to carriers on the road. With our fuel card, carriers save an average of 68* cents per gallon, 3x better than the industry average, which can add up to $12,000 per truck back in carriers’ pockets each year.
Carriers hauling for traditional brokers face a tough decision to either wait up to 60 days for payment or use a factoring service that costs an average of 3.5%, and can include hidden fees and lengthy lock-in contracts. As a result, a carrier can pay more than $9,000 of their take home pay in factoring and associated fees. Meanwhile, carriers are at the mercy of fuel costs and typically pay another $52,000 a year just to fill their tanks. While traditional fuel cards offer a modest offset to these costs, they don’t provide a convenient way to line-up fuel saving discounts on the routes carriers are running, and as a result, often go unused. The combination of Convoy Factoring and fuel card can help carriers save an industry-leading $19,000 a year in operating costs.
We know that driving a truck is one of the most important jobs across our nation. Yet the vast majority of carriers who work with traditional brokers are forced to wait up to 60 days following a job just to get the money they’ve earned, to cover their expenses and provide for their families. Our continued focus is to help carriers earn more, and keep more of their hard-earned pay, while removing many of the day-to-day hassles of the job. Extending Convoy QuickPay to cover non-Convoy loads, with low rates and a best-in-class fuel card, provides the industry’s leading option for savings.
Convoy Factoring extends our QuickPay program to non-Convoy loads
Carriers now gain the convenience of getting fast payment at 0% for Convoy loads, with QuickPay, and a low rate for their other loads, with Convoy Factoring. There are no contract lock-ins, so carriers can try the service without risk, and there are no invoice or transaction fees, so carriers can keep their cash flow constant by submitting each load’s invoice individually instead of waiting and submitting multiple invoices together. Additionally, we have integrated the Convoy Factoring process into the Convoy mobile app to enable carriers to submit invoices and find their next load with a few taps, in one place.
We were first to innovate with free QuickPay, allowing tens of thousands of carriers to get paid in two days and with no fees when they drove for Convoy. This is a benefit that the majority of brokers still do not offer to carriers. Today we take that innovation and support for carriers a major step further with Convoy Factoring, offering carriers the lowest average rate in the industry across all of the loads they haul, which puts more money back in their pockets.
“Convoy Factoring will be amazing for our business. No haggle, no hidden fees, no stress. The rates are top notch and I will be able to save thousands of dollars this year alone. I love that I will be able to factor directly in the app within seconds. It will be my one stop shop for getting paid for all my loads and finding what I will haul next.” – Mike Bhangu, a Kent, Washington-based carrier who has been working with Convoy since 2016.
New Convoy fuel card can save carriers $12,000 per truck per year
Today, we address one of the largest expenses for carriers with the introduction of the Convoy fuel card. Carriers who sign up for our fuel card can save an industry-leading average of 68* cents per gallon at the pump, 3x more than the industry average of 20 cents. With carriers consuming more than 18,000 gallons per year, the discount offered by our fuel card can save carriers more than $12,000 per truck per year.
Now, carriers get the best fuel discounts without paying any transaction fees at more than 1,000 participating truck stops across the country, including TA-Petro, Ambest, Roady’s and Sapp Bros. In addition to offering an industry leading discount, we’ve also built a new in-app integration which includes an interactive map of truck stops and fuel prices enabling carriers to consider available fuel discounts on the route when searching for their next load. The ability to plan their route and identify fuel stops, easily and simultaneously, is essential for carriers to maximize their savings.
“Each of our trucks goes through more than 60 gallons per day, so fuel is consistently one of my biggest expenses. With the big savings I will get from using the Convoy fuel card, I’ll save thousands of dollars that I can reinvest back into my business.” -Inderjit Gill, a Manteca, California-based carrier that has been working with Convoy since 2018.
*68¢ per gallon savings is based on client transactions using participating truck stops for Q4 of 2022
For carriers new to Convoy, sign up here.