Managing credit risk for fleet cards just got easier. With Pave’s new Fuel Charge Card Score, fleet card providers can now set dynamic credit limits based on a business’s cashflow and repayment behavior. The result? Fewer defaults, better repayments, and credit limits that grow with businesses.
What is a Fuel Charge Card?
A fuel charge card is a type of charge card that businesses use to pay for fuel expenses. These cards provide businesses with the flexibility to manage fuel costs for their vehicles without immediate out-of-pocket payments. However, setting appropriate credit limits is crucial to balance growth and risk.
Why a Fuel Charge Card Score?
Many small businesses rely on fuel charge cards to keep operations moving. However, traditional underwriting methods often miss key insights, leading to rigid credit limits that either stifle growth or increase risk. Fuel charge card providers face several challenges:
- High Default Risk: First payment defaults and NSF (Non-Sufficient Funds) fees affect profits and operational efficiency.
- Ineffective Underwriting: Generic credit scores fail to capture the unique repayment behaviors of each small business
- Missed Opportunities: Businesses with healthy cashflows often get overlooked because traditional assessments don’t accommodate new businesses with little credit history
At Pave, we're leveraging cashflow analytics to empower lenders to expand access to borrowers with less credit visibility. On top of that, we’re getting even more nuanced with cashflow scores that fit each credit product — because a mortgage isn't a small-dollar loan, a business line of credit isn't a merchant cash advance, and a charge card isn't a credit card.
The Fuel Charge Card Score gives you a cashflow-driven assessment specific to the industry of a business's ability to manage and repay fuel expenses. By leveraging real-time bank transaction data, fuel charge card payment history, and credit reports (when available), the score helps providers:
- Assess repayment risk based on statement balances and due dates,
- Optimize approvals and credit limits for both new and existing users, and
- Identify at-risk accounts early to manage delinquencies.
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Use Case: Smarter Fuel Charge Card Limits
By using the Fuel Charge Card Score, fleet card providers can get a more accurate assessment of a business’s repayment potential:
- High scores indicate a strong likelihood of on-time repayment and low delinquency risk,
- Lower scores highlight the need for tighter credit limits or closer account monitoring.
- For example, a user with a high score might safely manage a $3,500 monthly statement, whereas a lower-scoring user may require additional scrutiny or reduced limits.
Fleet card underwriting doesn’t have to be static. With Pave’s Fuel Charge Card Score, you can unlock flexibility, reduce risk, and support business growth.
How it Works
The Fuel Charge Card Score leverages Pave’s Cashflow Attributes to evaluate fuel charge card specific financial behaviors.
- Real-Time Financial Data: We analyze up-to-date revenue, operating expense patterns, loan payments, account balances, and more to provide a clear picture of a business's financial health.
- Identifying Fuel Charge Card Transactions: Our system detects fuel charge card related transactions.
- Predictive Modeling: Using machine learning, we forecast the likelihood of timely fuel charge card payments based on statement balances and due dates.
- Dynamic Limit Setting: Combine the score with Cashflow Attributes (like revenue patterns and balance trends) to set limits that align with the business’s cash flow.
The score, along with its underlying attributes enhances proprietary underwriting models—they don’t replace it.
Unlocking Flexibility for Businesses
Fuel charge cards, powered by the Fuel Charge Card Score, enable businesses to manage fuel expenses effectively while reducing the risk of delinquencies. Providers can confidently extend credit, knowing they have a data-driven view of repayment likelihood. The result?
- Reduced delinquencies and improved cash flow for providers.
- Streamlined fuel expense management for businesses.
A Better Way to Assess Risk
With the Fuel Charge Card Score, providers can:
- Approve more businesses with confidence.
- Set tailored credit limits that align with a business’s cash flow.
- Reduce risk while enhancing operational efficiency.
Ready to see the Fuel Charge Card in action?
With a score tailored to real-time cashflow data, you can make smarter credit decisions, reduce delinquencies, and optimize fuel card offerings for your customers.
Book a demo to learn how Pave’s Fuel Charge Card Score can transform your fuel card offerings.
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