Fleet One Factoring
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Fleet One Factoring Quick Information:
- Fleet One Factoring Headquarters: Nashville, TN
- In Business Since: 1988
- Small Business Funding Options: Invoice Factoring, Accounts Receivable Factoring
- Direct Lender: Yes
- Non Recourse Factoring: Yes
- Factoring Rates: As low as 1% (see ‘Fleet One Factoring Info’ below)
About Fleet One Factoring
If you operate in the trucking industry, you have probably heard of Fleet One Factoring. The veteran Tennessee-based invoice factoring company offers trucking finance and freight factoring solutions for fleets across the nation.
While primarily an accounts receivable factoring company, Fleet One’s popularity has grown because of superior technology platforms and cost savings programs for their customers. This has set them apart from many other freight factoring competitors.
Their technology platforms include the WEX Telematics service which improves safety by monitoring driver behavior and analyzes fuel usage. It’s reporting service offers GPS information and Fleet One fuel card data. The GPS technology offers the most efficient (and profitable) route to deliver your load.
They also offers WEX Clearview, an analytics program for fuel services used to identify further cost saving opportunities and uncover fraud.
Fleet One Fuel Card
Fleet One Factoring offers their trucking clients a tremendous cost savings program. The Fleet One fuel card, known as Fleet One EDGE, provides customers access to a network of over 3,000 fueling stops nationally. More importantly, this fleet card saves customers an average of 12 cents a gallon based on a Fleet One Factoring survey. It is the largest nationwide fuel discount network, according to Fleet One.
Major Fleet One Fuel Card Locations
- Circle K
- Petroleum Wholesale
- Quick Fuel
- Murphy USA
- Pilot Flying J
We found a testimonial from Kraft Food’s private trucking fleet and the executive beamed that Fleet One fuel card, known as the ‘EDGE’ has resulted in cost savings of about 20 cents per gallon. That is some real savings for a fleet as large as Kraft, and a ringing endorsement.
The Fleet One fuel card is also accepted at roughly 5,000 merchant locations that don’t participate in the Fleet One EDGE network. In addition to fuel card savings, they offer discounts on other essentials that truckers need such as tires, wireless, maintenance and hotels.
Invoice Factoring at Fleet One Factoring
Truckers are sick of delivering loads (on-time) and being forced to wait up to 90 days for payment on their invoices. Fleet One Factoring provides invoice factoring for truck fleets in its home state of Tennessee and across the country.
They offer both recourse and non recourse factoring for clients with B2B (business to business) invoices. Fleet One Factoring offers both discounted and non recourse factoring, which is a major benefit for customers.
Fleet One Non Recourse Factoring
Non recourse factoring includes the removal of credit risk, even if you have to pay a higher factoring fee is something we believe small businesses should advantage of.
Fleet One Factoring’s traditional, non recourse factoring facility, they perform the credit checks on your new or overdue customers and subsequently assuming the credit risk of your customers. This allows truckers to focus on core business operations and new opportunities. Keep in mind, non recourse doesn’t protect against refusal to pay in the case of damaged goods, etc.
Fleet One Recourse Factoring
Recourse factoring is a cheaper invoice factoring option which allows smaller businesses a chance to plow those savings back into their business. This can improve cash flow as well as profitability. If you are familiar with your customer’s and are confident in their ability to repay their accounts receivable, this might be a good option for your business. Fleet One offers discounted, recourse factoring to its trucking customers.
Fleet One Factoring Info:
- IFA Member: Yes
- Factoring Rates: As low as 1%
- Funding Advance: Up to 95% of eligible invoices
- Funding Time: Within 24 hours
- Dedicated Rep: Yes
- No monthly minimums
- Factoring Support Services: Huge credit database, maintenance fuel card programs, collections
Fleet One Factoring Company Review
Factoring customers receive a dedicated account manager from Fleet One, which is very important. Anyone that has ever engaged in alternative funding such as invoice factoring or accounts receivable financing realizes there will probably be some snags along the way. A dedicated account manager is huge (especially at larger invoice factoring companies) because otherwise your case may be handled by the next representative at the call center.
Speaking of call centers, Fleet One Factoring’s call center has been ranked in the top 25 for 5 straight years by Benchmark Portal. If you plan on factoring invoices with any company, you will inevitably speak with someone at a call center (even with a dedicated account rep).
WEX Fleet One Factoring has a Deep Capital Source
Wex Inc. is the parent company of Fleet One, a publicly-traded corporate payments company based in Maine. This is why they’re referred to as Wex Fleet One Factoring. WEX shares listed on the New York Stock Exchange under the symbol, WEX.
With over one billion dollars in total revenue for 2016, WEX has access to the capital markets which allows it (and it’s subsidiaries like Fleet One Factoring) to benefit from a deep capital source- institutional investors.* This liquidity drives new innovation in Fleet One’s technology platforms, ensuring it will stay on the cutting edge going forward.
On May 1, 2017 Moody’s credit rating agency affirmed WEX Inc’s Ba3 rating on the company’s 1- Long Term corporate family rating 2- senior secured bank credit facility and 3- senior unsecured regular bonds.** More importantly, Moody’s upgraded the outlook on WEX Inc. from negative to stable which shows us that Wex Fleet One Factoring is remaining financially diligent, something that can be easy to do for publicly traded companies.
Fleet One Factoring has a Decent Reputation
We conducted some due diligence on what people are saying about Fleet One Factoring and it’s business practices. While no one is perfect, especially with the ease of today’s information overload, we did come across some pretty upset ‘customer reviews’ on some review websites. Here’s our take on them. The majority of the negative reviews had to do with extra costs and billing issues.
It is the ‘customer complaints’ that we focus on, of which Fleet One Factoring had 3 with the BBB. These are more ‘official’ complaints which allow the business to make a direct response. Fleet One did address all the complaints, one being a future scheduled response.
Fleet One Factoring is not rated by the Better Business Bureau (of Middle Tennessee) nor is it accredited. Keep in mind, businesses are under no obligation to become accredited by the BBB and not being accredited doesn’t necessarily mean it was denied such status.
One way to keep negative customer reviews to a minimum is by offering full-disclosure up front. Factoring contracts can be lengthy and often, small businesses don’t have the time or energy to read through the entire contract and fine print. Still, it is the small business’ responsibility to do so.
All else equal, we prefer shorter contracts to longer ones- in case a disagreement between the invoice factoring company and small business that leads to a strained relationship, the business can move onto a better fitting relationship.
Should I be Factoring Receivables with Fleet One Factoring?
If you are a trucking company or even a small independent, you should feel comfortable factoring receivables with Fleet One Factoring. Fleet One has excellent technology that can save truckers lots of money.
While it appears that Fleet One Factoring can get a little aggressive with their factoring rates, the cost savings and support services the invoice factoring trucker receives clearly outweigh some factoring costs. The Fleet One fuel card savings card program is a perfect example.
Fleet One Factoring essentially became a publicly-traded company when WEX bought them in 2012. It is likely the pressure from the investment community that is driving WEX’s profitability and causing Fleet One to squeeze out higher factoring rates.
The flip side to this coin is that WEX’s scale should allow Fleet One’s cost savings and technology programs to continue to improve business for truckers.
Finally, Fleet One has been in business since 1988 and that roughly thirty year period of factoring tells us that they are a sound company with substantial expertise in freight factoring. If they weren’t, Fleet One would have been long gone.
In summary, we would feel comfortable factoring invoices with Fleet One Factoring. The factoring company will provide a free quote of their factoring rates for small business customers.