Are you in the haulage industry? If your business is part of this sector, then invoice finance could be a real option to ease cash flow and boost investment potential of your business. With running costs, long payment terms and rising fuel prices all daily challenges, having a bit of extra financial flexibility makes sense. It’s these types of issues that factoring and invoice discounting can really make a difference to.
It’s the high cost outlay, poor payment terms and the significant costs of capital purchases that make invoice finance a suitable option for haulage companies. Margins are thin, and so you need good cash flow coming in from multiple contracts in order to make ends meet. The current economic climate and the high costs entailed by the haulage industry make it essential to have good working capital.
Invoice finance can help with day to day working capital arrangements. Using the debtor book to fund daily cash flow requirements can effectively reduce your payment terms and keep a reliable source of cash flow. However, if you need to make a large purchase such as a new vehicle, it’s worth looking into other, complementary forms of alternative finance.
Asset based finance is something that could help with larger, less routine purchases that can leave a gaping hole in your cash flow. But it’s invoice finance that can help on a day to day basis – hauliers can make great use of a well-structured invoice finance programme to make sure their business has access to all the cash flow it needs. If your haulage business is struggling with tight cash flow, then it’s worth talking to an invoice finance expert to see if they can help.