I filled out an application for Wex, they said it’d be easy, and although it’s a credit card, it’d charge my account daily, so it’d act like a debit.
I had to follow up with em, because I hadn’t heard anything. Now they want me to give them a $500 deposit that they will keep in their bank (wex bank) for the lifetime of my account, because they said I don’t meet their credit requirements. (I’ve never used a credit card, or had a bank loan.)
Do you guys know of any fleet cards that act like a debit card (where they are automatically charged)?
What are you guys using, what do you wish you would have known before you went down this road?
Why not just get a credit card, it’s just as easy. WEX is intended for major fleets, trucking companies etc. I would be fascinated to know how you have made it thus far to function without a credit card or a bank loan?
Your business (I am assuming you have an EIN) does not have enough, or any, business credit history. I’m not sure any fleet fuel card provider will let you on board without a deposit.
You can talk to your WEX sales person and offer to sign a personal guarantee as the owner of the company. If you are comfortable with that then they may accept that instead of the deposit. Once you show reliable payment history for a year or two you can contact them and have the personal guarantee rescinded.
They said they do small businesses too… I just got off the phone with my bank. Their credit cards won’t restrict the type of purchase someone can make, only the dollar amount.
When I started fresh outta highschool in 2014, I dumped a majority of my savings into the business and only bought what I had money in my account for. When the opportunity to purchase another business came up in 2015, I borrowed a few grand from my parents and some from my brother and then paid them back with the money I made from the new customer I had acquired. I’ve built up enough to have a rainy day fund if I absolutely needed a loan I could loan against myself without interest…
Makes sense now, you’e only 22. Good that you didn’t occur any debt to start your own business and were able to get your parents and brother to back you.
It’s great that you haven’t gotten in debt , but you have to build your credit reputation for theses kind of situation . Also maybe later you want to fiancé a car or a home . You need at least 2 year history to buy a house.
To build your credit reputation you have to apply for many credit cards , you’ll only be approved for 2-3. They’ll start you with low limits, but once they notice you pay on time they’ll give you better limits . Then it will be easier to open a fleet gas credit card . Just pay on time and don’t max out your credit cards . You want to only use less than half your limit (very important )
If I were your age Frozone and know what I know now. I would not work on building credit.
If I would have known the principals in two books " THE TOTAL MONEY MAKEOVER " and
" THE MILLIONAIRE NEXT DOOR ". Reading these two books at your age and applying the principals could mean the difference between a life of financial turmoil or true financial freedom.
I do apply these principals today because I was never taught ( or knew ) good financial principals as a young man.There is not only one means to an end. Do yourself a favor and investing a couple weekends and read these two books.
You don’t want to go with regular credit cards. Our trucks have a fuel card in each glovebox and they only work at Arco. They also only work Mon-Fri. From 6am to 5pm. It’s the best way to have control over expenses and funny business.
And I’m guessing you’re trying to do this on personal credit. I highly recommend not doing this. If you incorporate, it’s much easier to get business credit and not having to personally secure any lines of credit.
It didn’t sound like Wex required a minimum… I had 3 vehicles when I applied, now I’m down to 2, we’re probably only spending $400-$500/month in fuel right now
That’s what everybody says. I respect your advice, but I know myself better than “just pay on time” unless it’s automated, it won’t get done on time. it seems like an easy and small thing to do, but because it’s small, it’s not easy because I’m juggling a million “small and easy” things to do. It’s inevitable that something will give and I know it’d be a CC.
I’m doing better than I deserve.
I was a weird kid growing up, so I read kid financial planning books as a youngster, and enjoyed the concept of finance and budgeting… Nowadays all budgeting goes out the window if I drive by a Cafe Rio, (I may struggle with self-discipline when it comes to Mexican food). I should read it again. My CPA was just saying, “Uh, Jarred have you looked at your P & L report for this year compared to last year? cuz you might want too…”
I’m friends with my attorney’s son (thats how my attorney became my attorney, actually. lol) And my attorney said “read The millionaire next door, and then if you have questions about business stuff you can ask me, but you have to read this book first.” You better bet your buttons I whipped through that book! He gave me a copy, and I read it from cover to cover. I won’t lie, when I read it (it was a few years ago) I found it really dry, but the principles were something that I agreed with and my attorney exemplifies in his own life. Modesty is a beautiful thing that is underrated.
Thank you for the advice! If you’ve got any tips on hiring and keeping good employees, I’m game! I REALLY need some better leadership skills and management skills.
Yeah, I’ve heard horror stories.
That’s a good idea! I don’t think we have Arco, up here. Or if we do they’re so sparse that it would be a viable option.
I own an LLC so it was through the Biz, not personal stuff.
