Navigating Cash Advances and Out-of-Pocket Expenses in Trucking | Top Guides

10 minutes

by Jon Smith

Let’s start with cash advances. What are they, and how do they work for truck drivers?

Cash Advance

A cash advance is essentially a credit without interest but with a company fee. Drivers request and receive it from their trucking company, allowing them access to fast and easy cash, typically a few hundred dollars. This guide serves as an essential trucker cash advances guide to help you understand the process.

How Cash Advances Work?

First and foremost, a driver needs to ask about a cash advance during orientation. Recruiters are usually happy to provide this information. Most companies offer a $100 or $200 cash advance weekly. This can be helpful to have a few hundred dollars a week as cash. Ask the recruiter who to contact to get this.

If a company offers this option, the driver needs to contact the dispatcher, accountant, or possibly the recruiter to request a cash advance. Most of the time, companies add the cash advance to the fuel card, allowing the driver to get cash from the cashier at any truck stop.

Example Scenario

Driver Steve works with ABS Trans. During his orientation, where he completes a pre-employment drug test, signs paperwork, passes a road test, and inspects his truck, Steve asks the recruiter about a cash advance:

Steve: Does the company have a cash advance?

Recruiter: Yes, we offer $200 a week.

Steve: Ok, how does this work? Who do I need to contact to get this?

Recruiter: It’s easy. You need to text your dispatcher and ask for a cash advance of up to $200 once a week, and your ABS Trans dispatcher will add the cash to your fuel card.

Steve: Ok, but how do I get it from the fuel card?

Recruiter: Stop at a truck stop, or when fueling, go to the cashier, give them your fuel card, and ask to withdraw the cash, like $200. That’s all.

Note: The recruiter may not explain the small fee you pay when getting cash from the cashier.

Steve: Understood. Can I have it now? I need to buy some things for the truck.

Recruiter: No, sorry. You can request a cash advance only after your first trip.

Note: Companies often do not provide a cash advance on the first day to prevent drivers from taking the money and quitting. After the first trip, the company can cover the cash advance with the driver’s salary.

Tips for Cash Advances

• Add the cash advance to your fuel card instead of asking for an EFS money code. Companies may deduct $5 - $10 from your weekly statement for creating an EFS money code.
• Avoid asking for cash advances frequently. Trucking companies prefer to work with employees or contractors who seem financially stable. Frequent requests for cash advances may lead to distrust. This is key for managing trucker finances effectively.

Managing Out-of-Pocket Expenses

Out-of-pocket expenses refer to costs that drivers incur while on the road, such as buying a windshield washer or paying for a scale. How can drivers manage these expenses and get reimbursed?

For instance, after loading at a shipper, a driver must check the truck’s weight to ensure it’s not overweight. If the shipper doesn't have a scale, the driver needs to visit a nearby scale station, paying around $10 - $15. The driver should take a receipt and send it to the office for reimbursement. This process is part of efficient trucking expense management.

In another scenario, if a driver delivers a load at night and the receiver requests a lumper fee, which can range from $50 - $450, the driver may need to pay out-of-pocket and seek reimbursement later.

Reimbursement Issues

• Lost receipts: Billing departments may lose receipts or drivers might lose them.
• Lack of approval: Accounting departments may need confirmation from dispatchers or fleet managers for certain transactions.
• Company reluctance: Some companies may try to avoid reimbursing expenses, especially during financial crises. This highlights the importance of having trucking expense solutions in place.

Tips for Out-of-Pocket Expenses

1. Keep Records: Maintain a detailed record of your miles, trips, and out-of-pocket expenses. This helps ensure you get reimbursed and demonstrates professionalism. This is crucial for truck driver expense tracking.
2. Photograph Receipts: Take photos of all receipts and organize them in a dedicated album on your phone.
3. Email Receipts: Send an email with a copy of the receipt to the accounting department for faster reimbursement. This aids in tracking trucking expenses.
4. Follow Up: Call the accounting department to confirm they received your email or hard copy.
5. Visit the Office: If your reimbursement is ignored, visit the office and speak with the General Manager, showing all proofs and requesting immediate payment. This is a part of truck driver cash flow management.

Tips for Keeping Accurate Records

Use apps like Excel, YNAB, or AI Chart-GPT (recommended). You can ask AI to build a file for out-of-pocket expenses and add records easily.

Conclusion

Be patient, strong, and smart. The trucking industry is challenging, and to avoid losing money, you need to follow these tips and maintain accurate records. This not only helps you get reimbursed but also provides valuable data if you plan to start your own trucking company. Stay professional; the industry needs skilled and reliable drivers. This advice is part of effective expense management for truck drivers and financial planning for truckers. Stay diligent and informed to ensure your financial well-being in the trucking industry.