Growing your trucking business is difficult enough without the constant pressures of managing poor cash flow. Getting your cash flow under control allows you to place focus where it belongs; gaining new business and servicing existing customers. Employing the services of a reputable factoring company and utilizing invoice receivables factoring to access immediate cash has become a common practice within the transportation industry.
Have you ever witnessed someone experience a panic attack? The heart palpitates and hands shake. Often the person becomes paralyzed with fear. Unfortunately, that also describes how many businesses and their owners react to an unexpected or prolonged cash flow crisis. At a time when focus on growth is exactly what owners need to turn their trucking businesses around, every waking minute is spent worrying about cash flow.
The trucking and transportation industry is highly competitive and growing. Those business owners who have the focus and resources to seize opportunities as they present themselves stand the best chance of reaping the rewards.
If your trucking business is struggling, or not meeting your goals, it's time to conduct a focus check. Where is your time, energy and focus spent? If cash flow problems are robbing you of your ability to focus on growing your trucking business and creating new opportunities for revenue, it's time to regroup and refocus.
Understand, we're not suggesting that you ignore cash flow. On the contrary. Do what's necessary to put a leash on your cash flow problems so that you can concentrate on growing your business.
Give the job to a professional
If you're still the one who's following up on receivables, managing cash flow and wearing the dozen other hats in your business, it's time to give the cash flow job to the professionals. Some options include:
- utilizing an accountant to budget cash flow and recommend processes
- having a designated in-house professional to manage and follow up on receivables
- hiring a professional receivables management firm to do the job for you
- taking advantage of factoring which includes performing the back office receivables work for you
Whichever option works best for your trucking company, you'll find that the faster turnaround of receivables and decreased bad debt can more than pay for the investment.
Give your cash flow some CPR
If traditional financing isn't possible or something you want to incur, consider factoring your trucking invoices to create cash flow. It's a simple process often used as a temporary financing solution by many trucking businesses to provide immediate cash until they can turn their balance sheets around.
For some trucking companies, factoring becomes their way of doing business because of the benefits they realize:
- cash flow becomes predictable and immediately accessible
- the factoring company conducts all credit checks and follows up on receivables reducing their back-office costs
- they see a sizable decrease in bad debt
- they now have the cash flow to take advantage of early payment and bulk purchase discounts
Getting your cash flow under control allows you to place focus where it belongs, growing your trucking business and finding new sources or revenue.
For more information about factoring for your trucking, freight and transportation business, visit www.accutraccapital.com.