What problem is each of the three built to solve?
Each tool targets a different pinch point. An equipment loan finances an asset, such as a tractor, a trailer or telematics hardware, and the equipment usually serves as collateral. Factoring sells your open invoices for an advance so you are not waiting 30 to 60 days for a customer to pay. A fuel card gives you a controlled way to buy fuel, sometimes with pricing programs and reporting. They are not substitutes, and picking the wrong one for the problem is the common mistake.
When does an equipment loan fit a 5 to 20 truck fleet?
An equipment loan fits when you are adding or replacing a specific asset and the freight to pay for it is already visible. Spreading the cost across a term keeps cash free for payroll, insurance and repairs. The risk is a fixed payment in a slow month, so test the payment against your weakest recent month, not your best. It does not help with slow-paying customers or fuel float. See equipment financing for how it works.
When does factoring fit?
Factoring fits when the real problem is waiting on customers: strong freight, healthy volume, and cash stuck in unpaid invoices. Because the advance is tied to invoices, it grows as you haul more. Compare the total cost, not only the advance percentage. Ask about recourse, whether your customers are notified, minimum volumes, contract length and fees for early exit. Factoring does not buy equipment, and it may not suit a fleet that hauls mostly for a few customers who pay quickly.
When does a fuel card fit?
A fuel card fits when fuel is the cost that squeezes the week. Look at where it works, what controls it offers by driver and truck, how billing cycles line up with when you get paid, and any fees. It is a purchasing tool, not a source of general capital, so it will not cover payroll, a down payment or a repair bill.
How do the three combine?
Many fleets use more than one. As an illustration, take an eight-truck fleet hauling for a handful of shippers on net-45 terms. It finances a new trailer with an equipment loan so cash is not drained up front, uses a fuel card to keep fuel purchasing controlled, and sells some invoices only in the weeks when payroll and insurance land before customers pay. Each tool does one job. The mistake is using one tool, such as factoring, to solve a problem it was not designed for, like buying equipment.
Where does I-95 Funding fit?
I-95 Funding helps fleets of multiple trucks get funded. Our options include working capital, a business line of credit and equipment financing. We do not offer factoring or fuel cards; they are described here because many fleets compare them. Dry van carriers can also read how dry van fleets manage lumper fees and retail peaks, and regional carriers face similar timing gaps. Not sure which fits? Which funding fits your business walks through it.
What should I ask before choosing?
- What is the total cost or total repayment in dollars?
- How and when are payments or fees collected?
- Are there minimums, long terms or exit fees?
- What happens if my volume drops?
- Which customers or documents does the provider need to contact or review?
Frequently asked questions
Is factoring a loan?
Not exactly. Factoring is the sale of your invoices to a factoring company for an advance, with the balance paid when the customer pays, less a fee. It is priced and structured differently from a loan, so compare the full cost and the terms rather than a headline number.
Can a fuel card replace working capital?
Not really. A fuel card helps with fuel purchasing and may offer controls, reporting and pricing programs, but it does not cover payroll, insurance, maintenance or a down payment. It manages one cost; it does not fix a general cash gap.
Does equipment financing help with cash flow?
It can. Financing a truck or trailer spreads the cost over a term instead of draining cash up front, and the equipment usually serves as collateral. The payment is fixed, so make sure your freight supports it in a slow month.
Is a fleet of 5 trucks too small to get funded?
Not by itself. Funders look at deposits, time in business, credit, existing payments and customer mix. I-95 Funding works with fleets of multiple trucks, not single owner-operators.
Does I-95 Funding offer factoring or fuel cards?
No. This page describes them because many fleets compare them. I-95 Funding helps fleets with options such as working capital, a business line of credit and equipment financing.
What should I ask any provider before signing?
Ask for the total repayment or total cost in dollars, how and when payments are collected, whether there are minimums or long contract terms, what happens if volume drops, and every fee. If an answer is vague, that is information.
Match the tool to the problem
Tell us where cash gets stuck and we will show you options.
Updated October 25, 2026 · I-95 Funding Team