Transport and haulage businesses can be incredibly profitable and are certainly in demand with the growing e-commerce market. However, the transport industry has many challenges, such as unpredictable fuel prices and high operational costs. Additional difficulties, such as a varying workload and short-term contracts, can make it difficult to predict your finances and make managing your cash flow extremely difficult.
For transport and haulage businesses that want to expand, working capital is essential. You require healthy cash flow if you are going to grow your fleet, market your business or pitch to new clients. So how can you continue to grow and manage your transport and haulage business when cash flow can be unpredictable?
Using Invoice Finance to Grow Your Transport and Haulage Business
It is an exciting time to be in the transport and haulage industry. After all, the industry is on the cusp of change with lots of new, alternative technology being introduced. From electric vehicles to driverless solutions, transport and haulage firms that want to grow will need to have the flexibility and ability to meet the changes and adapt to the demands of the business.
However, when your clients stipulate lengthy payment terms, it can be hard to have the cash flow and capital to quickly invest in the solutions that can drive your business forward.
This is where alternative finance solutions can really help transport and haulage firms, with flexible and adaptive finance solutions that do not offer the big risks that loans typically come with. Furthermore, alternative finance solutions also work hand in hand with business loans, which you may already have in place to finance your fleet.
Invoice Finance is just one of the alternative finance solutions than can really help transport and haulage businesses to boost their cash flow and help them to meet the growing demands of the industry.
How Invoice Finance Can Work For Your Transport and Haulage Firm
We have several clients in the transport industry that feel the struggles of lengthy payment terms from their clients yet are still determined to achieve their targets and continue to grow.
We provide an Invoice Finance solution to these clients where we will release funds from invoices quickly so that firms do not have to wait for these lengthy payment terms to receive their funds. When the debtor does pay the invoice, the funder then releases the rest of the funds from the invoice, minus a small service fee.
The benefit of this for our transport and haulage firms is this flexibility. Our users have complete control over the invoices they want to use this function for. This is ideal for businesses that face uncertainty from fluctuating business costs and workload as it enables firms to release cash in an ad hoc funding situation.
With Invoice Finance, you can ensure your business and capital is ready to adapt to the next big change in the industry.
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