Definition
A cash advance issued at load pickup to cover fuel before delivery.
Why it matters
Fuel advances are deducted from the final freight factoring payment.
Where it shows up in a deal
A fuel advance is requested at pickup, once a load is dispatched against an accepted rate confirmation, and before any delivery paperwork exists. The factor releases a portion of the load value immediately and nets it out of the delivery payment on the same load, so it is an advance within an advance rather than a separate facility.
What it affects
- It is secured by a dispatched load, not a completed one, so it is underwritten more tightly.
- The amount is capped by your program and by the broker's approved credit limit.
- Many programs charge a separate fee - flat dollar or percentage - on top of the per-load fee.
- A load that falls through after a fuel advance leaves a balance you owe back.
A worked example
A $3,100 load factored at a 97% advance on a 3% flat fee produces $3,007 in total. A 45% fuel advance releases $1,395 at pickup, leaving $3,007 - $1,395 = $1,612 paid when the signed BOL is uploaded. The fee is $93.
The common mistake
Related terms
- Freight FactoringFactoring of trucking freight bills, usually with same-day funding after delivery.
- Rate ConfirmationA document from a freight broker confirming load details and agreed pay.
- Advance RateThe percentage of an invoice's value a funder pays upfront.
- Broker Credit CheckA review of a freight broker's payment history and credit before hauling a load.
Questions about how fuel advance affects your facility?
Call (929) 658-8087 or request a written quote — no obligation, no credit impact.
