Convoy, the nation’s most efficient digital freight network, today announced 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. Convoy now offers 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, Convoy launched a new fuel card which helps address the single biggest cost to carriers on the road. The Convoy fuel card saves carriers an average of 63* cents per gallon, 3x better than the industry average, putting up to $12,000 per truck per year back in drivers’ pockets.
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Convoy Fuel Card Process (Graphic: Business Wire)
Over 90% of the carriers in the U.S. are small fleets with 10 or fewer trucks. Some of the biggest over the road expenses for these carriers are fuel and factoring. Today, drivers hauling for traditional brokers face a tough decision, 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. A carrier can pay more than $9,000 of their take home pay in factoring and associated fees. Meanwhile drivers 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.
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,” said Dan Lewis, CEO of Convoy. “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.”
New Convoy Factoring extends innovative QuickPay program to non-Convoy loads
Carriers now gain the convenience of getting paid the same or next day, with Convoy Factoring, at a low rate for non-Convoy loads and at 0% for Convoy loads, with QuickPay. Combined, a carrier’s rate can be up to 57% lower than the industry average when a carrier hauls half of their loads with Convoy.
Convoy Factoring has no contract lock-in, allowing carriers to try the service without risk. With no invoice or transaction fees, carriers can keep their cash flow constant by submitting each invoice individually instead of waiting and submitting multiple invoices together. The Convoy Factoring process has been fully integrated into the Convoy mobile app to enable carriers to submit invoices and find their next load with a few taps, in one place. By partnering with Apex Capital, Convoy provides carriers with the trusted, high-quality service offered by Apex Capital for more than 25 years.
“Convoy was the 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,” said Ziad Ismail, Convoy Chief Product Officer. “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,” said Mike Bhangu, a Kent, Washington-based carrier who has been working with Convoy since 2016. “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.”
New Convoy fuel card can save carriers $12,000 per truck per year
Today, Convoy addresses one of the largest expenses for carriers with the introduction of the Convoy fuel card. Carriers who sign up for Convoy’s fuel card can save an industry-leading average of 63* 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 the Convoy 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, Convoy has 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 drivers 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,” said Inderjit Gill, a Manteca, California-based carrier that has been working with Convoy since 2018.
*63¢ per gallon is based on client transactions using participating truck stops for Q2 of 2020
Convoy is the nation’s most efficient digital freight network. We move thousands of truckloads around the country each day through our optimized, connected network of carriers, saving money for shippers, increasing earnings for drivers, and eliminating carbon waste for our planet. We use technology and data to solve problems of waste and inefficiency in the $800B trucking industry, which generates over 72 million metric tons of wasted CO2 emissions from empty trucks. Fortune 500 shippers like Anheuser-Busch, P&G, Niagara, and Unilever trust Convoy to lower costs, increase logistics efficiency, and achieve environmental sustainability targets. Convoy.com