U.S. Bank and FuelQuest have teamed up to provide extended payment terms for rack-based fuel purchases and accelerated supplier payments by providing greater access to credit through the U.S. Bank Fuel Financing program.
The financing tool is currently only available on a select basis.
The new service will give buyers improved cash flow with expanded payment terms, increased purchasing on one line of credit, greater growth opportunities and lower financing costs, according to a company press release. Officials said that suppliers will also benefit from more lines of credit, seeing greater balance sheet stability and decreased collection costs.
“Significant inefficiency exists in the procurement and payment processes of the downstream oil and gas industry,” U.S. Bank's Ramel Lindsay said in a statement. “Credit markets also remain tight, inhibiting growth and creating unnecessary costs for buyers and suppliers of fuel. With Fuel Financing, U.S. Bank addresses these issues by assuming payment risk and offering transacting parties more favorable terms that improve capital efficiency.” - Jon Ross