Trucking is a race against the clock. As every truck driver knows, the constant pressure to navigate traffic snarls, avoid highway closures, overcome mechanical problems, and stay awake and alert to deliver their load at the contracted time is only part of the story. Another critical element that keeps the wheels turning is effective cash flow management.
Tackling Cash Flow Challenges in the Trucking Industry
Just as the driver’s truck runs on diesel fuel, the owner’s company runs on business cash flow. Whenever a customer is slow to pay their invoice, it’s a troublesome pothole in the trucking company’s cash flow. Get enough of these slow-payers, and the result is the trucking firm’s ability to pay its own bills, expenses, and its employees can grind to a halt.
Cash Flow Small Business Problems and Solutions
Smaller trucking companies are especially at risk of cash flow management challenges problems. They have fewer trucks on the road, so the small profit margins prevalent throughout the industry hit them harder. A two- or three-truck operation can face real trouble when one of those trucks breaks down unexpectedly. Add several slow-paying customers into the mix, and suddenly the firm is confronting a severe cash flow problem at a time when they need funds the most.
Factoring Cash Flow: An Effective Solution for Slow Payments
Has this happened to your trucking company? Is your collections department currently struggling with slow-paying customers not taking care of their invoices in a timely manner? Are you looking for cash flow management solutions that will enable you to improve business cash flow and keep cordial relations with your customers, and avoid late payments or noncollectable accounts?
Cash Flow Improvement Through Invoice Factoring
The good news is such a solution exists that lets you keep on trucking with invoices paid and cash flow problems now in the rearview mirror. Cash flow factoring, also known as accounts receivable financing, is your ticket to improve cash flow and navigate the financial gaps in your trucking business.
Factoring your invoices is one of the best cash flow management solutions for improving your accounts receivable turnover ratio. With this type of alternative business funding, the factoring company advances you funds for your accounts receivable invoices. The factoring company pays you right away for your outstanding invoices and takes care of collecting them from that point forward, freeing you of the troublesome and time-consuming chore of payment collection. Invoice factoring is also quick – you can usually get paid within just a day or two instead of waiting the usual 30, 60, or 90 days or more.
The Benefits of Business Factoring and Improved Cash Flow
Factoring companies can get you the money you need when you need it… with no long-term obligations. Gone is the worry and hassle of slow pay collections, bad debts, and doubtful accounts. Instead, you’re now free to run your business, to buy new equipment, hire new employees, expand operations, pay bills, or whatever else you choose. And, best of all, invoice factoring isn’t a one-time solution.
You can utilize invoice factoring as often as you need to keep your cash flow running as smoothly as your fleet on a wide-open, traffic-free road. Invoice factoring is a convenient alternative to traditional bank loans or fee-laden online loans. To learn more about how factoring companies work, simply call toll-free 1-877-960-1818 or email: clientsupport@charcap.com. Get your cash flow in gear today.
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