The ES Advantage Blog

For many owner-operators and small fleet owners, selecting the right fuel card is a big decision. Fuel is one of your largest operating expenses, and the discounts you access can significantly influence your profitability. Some providers bundle fuel cards with required factoring programs, promoting the convenience of one-stop service: steady cashflow, outsourced collections, and attractive fuel discounts.

These benefits can be valuable, but bundled programs also create long-term considerations that deserve a closer look. Before committing to any fuel card tied to factoring, it’s important to make sure the full picture aligns with your business goals.

Factoring vs. Fuel Discounts: What It Really Costs You

Factoring can help stabilize cashflow, especially if you’re working with customers who take weeks or months to pay. Getting funds quickly lets you cover fuel, maintenance, and other expenses without waiting on outstanding invoices.

However, when factoring is required to access a fuel card, those benefits come with ongoing costs. Factoring fees and rates directly reduce your profit margin. Even a small percentage taken out of every settlement adds up over time, and in many cases the cost of factoring outweighs the fuel savings being offered.

Before signing up, it’s worth comparing what you save at the pump versus what you’ll spend on factoring fees. A program that appears cost-effective on the surface may end up costing more in the long run.

Impact on Customer Relationships When a Third Party Handles Communications

Another important consideration is how a required factoring program influences communication with your customers. Most factoring companies take over responsibilities like collections, payment reminders, and invoice follow-ups. This can be helpful if you’d rather focus on running your business instead of administrative tasks.

But outsourcing these interactions also means giving up a degree of control. Customers may receive calls or emails from the factoring provider rather than from you, and not every customer reacts positively to that change. Even courteous outreach can create misunderstandings or strain long-standing relationships if clients aren’t accustomed to dealing with a third party.

For many owner-operators, customer relationships are the foundation of their business. It’s worth considering whether the convenience of factoring is worth the shift in communication.

Understanding Introductory Fuel Rates and What Happens After They End

Introductory fuel discounts are a common way providers attract new customers. These rates often look extremely appealing, sometimes far lower than standard industry discounts. While promotions themselves aren’t a problem, they can be misleading if the long-term pricing structure isn’t clearly understood.

In many bundled programs, the deeper introductory rates expire after a short period or are tied to specific requirements, such as mandatory factoring or fuel volume minimums. Once the promotion ends, the ongoing discount may not be as competitive as advertised, and the overall cost of the program, especially when factoring is included, may outweigh the savings you initially saw.

Choosing a Fuel Card That Truly Supports Your Trucking Business

Choosing a fuel card is ultimately about choosing a partner for your business. The best solution offers transparency, flexibility, and long-term value, not just short-term incentives. Before you commit to a fuel card with factoring requirements, examine the full cost, the impact on your customer relationships, and the long-term fuel pricing.

If you’d like support evaluating your options, the ES Advantage team is always here to help you make the most informed decision for your fleet. Have questions or want a side-by-side comparison? The ES Advantage team is here to help. Call If you’d like support evaluating your options, the ES Advantage team is always here to help you make the most informed decision for your fleet. Have questions or want a side-by-side comparison? The ES Advantage team is here to help. Call 888-566-9877 and discover what’s possible for your fleet and discover what’s possible for your fleet