U.S. Bank recently unveiled a new payment solution designed to reduce friction between bulk fuel suppliers and buyers. Refiners and wholesalers often require bulk fuel purchasers—such as gas station operators, government entities, and those operating large fleets—to pay within a few days, causing cash flow challenges, especially during times of volatile fuel prices.
With Pay-Term Optimization from FuelHub, refiners and wholesalers receive accelerated payment from U.S. Bank for approved invoices, U.S. Bank said. Bulk fuel buyers receive extended terms with low fees, allowing both trading partners to better manage their cash flow.
U.S. Bank is already processes more than $40 billion in freight and fleet payments annually. This includes standard fuel purchases, as well as alternative fuel purchases like electric vehicle charging services.
“Our deep experience in the transportation payment space will help immediately alleviate some of the payment challenges that have persisted for both bulk fuel suppliers and buyers,” said Ramel Lindsay, vice president at U.S. Bank Transportation Solutions. “By ensuring refiners and wholesalers get paid quicker and providing payment flexibility for bulk purchasers, we’ll help remove unnecessary friction in this important industry.”
Added Don Thibodeaux, CEO at FuelHub: “At a time when the downstream fuel industry has a number of challenges, we are excited to provide a major solution such as Pay-Term Optimization. By addressing the incongruence between time and money, we are able to deliver efficiency at intersections in the supply chain that need it most.”
U.S. Bank said its new payment solution was welcomed by Motiva, which sells to bulk fuel purchasers.
“Motiva prides itself on embracing new technologies and solutions which offer our customers innovative service options,” said Bill Spurgeon, Motiva marketing and sales executive vice president. “We are pleased to offer our unbranded customers with the enhanced payment flexibility made possible through the Pay-Term Optimization solution.
“This new, customer-friendly payment option has the potential to benefit fuel buyers needing optionality on pay terms beyond the industry norm, which can be especially valuable during times of business growth and market uncertainty.”