Do you plan on adding to your fleet or buying new equipment this summer? If you answered yes, you’re well aware that you may have greater cash flow needs than usual.
Financial fluctuations can make it challenging to expand your business, or even pay your drivers. Often these fluctuations look out of control; clients clear payments on delivery or follow their own payment cycle (30 days, 60 days, even 90 days), which mostly happens after you really require cash.
Fortunately, there are several things you can do to boost your cash flow. Learn more about the best ways to fund your transportation business.
1. Get Quick Payments for Freight Bills
One option to remove the uncertainty of receiving payments is to work with a freight factoring company . This option allowance you to secure immediate funds to pay freight bills.
Some companies go as far as to pay you the same day as the load is delivered, enabling you to have funds when you need them the most. Plus, you may also get the option to send qualified bills with delivery proof in order to receive payments. Consider companies that are experienced in this type of freight factoring.
2. Save Money with Fuel Cards
The more cash you have in your pocket, the less you’ll be concerned about cash flow. With fuel cards, you can receive the cash price on fuel while paying with the card, and save around $0.10 per gallon without worrying about fuel requirements (there are no minimums.)
As a bonus, some freight factoring companies can even credit the earnings right into your fuel cards to ensure that you have the balance to cover your fuel expenses.
3. Look into Working Capital Advances
As you expand your company, consider popular cash flow financing options such as working . This options takes future business activity into account and disregards collateral.
Working capital finances can be particularly handy when you face an important investment decision an emergency as they’re easier to obtain than conventional funding
4. Ensure That Your Credit Rating Is Decent
Having extra funds enhances your ability to improve your credit rating, make timely payments, and get discounts. It can also help you avoid penalties associated with high interest rate payments. You can look for options such as loyalty programs and benefit cards to improve your credit rating.
Transportation businesses that use these options usually find ways to save on fuels, hotels, and tires. Local associations may also help you find opportunities.
5. Receivables Funding Specialists Can Work Wonders
The problem transportation companies face isn’t the lack of sales invoiced, it’s a stockpile of previously due invoices that haven’t been cleared on time. There’s nothing more destabilizing for a firm’s cash position than clients who do not make timely payments.
Before considering collection techniques that could damage your relationship with customers, consider working with a funds receivables company. These companies specialize in taking all your due invoices and turning them into the funds you need to successfully grow your transportation business.
Even the most successful of companies can experience cash flow inefficiency. Follow the above mentioned tips to ensure that you don’t face financial problems down the road as you expand your resources.