A business plan has two primary purposes. First, a properly constructed plan will map out your trucking business' direction, define objectives and identify strategies to ensure your trucking company's success and growth. The second purpose is to demonstrate to banks or other lenders that your trucking company is a sustainable business and in good credit standing.
Writing a business plan can be difficult, as it is a detailed document outlining the path to success. An easy first step is to begin with a business plan template to help you get started.
Use freight factoring to create financial stability
Once you have detailed the tactics and strategies your business will use to achieve success, the next purpose of your business plan is to demonstrate a viable financial plan. Banks are typically risk adverse and will generally reject a trucking company’s application for an operating line of credit, unless the business can show a healthy financial foundation. Freight factoring is a mainstream financial option used to create positive cash flow. It is a powerful strategy that aids the building of financial stability and the strong credit rating your trucking company will need to meet the bank's requirements for lending.
Factoring is not a loan, it is the sale of invoice receivables in exchange for immediate cash. When you sell an invoice to a factoring company, it enters the balance sheet as cash. Using freight factoring increasing the company's assets and improves the financial benchmarks that banks assess when considering your company for a business loan.
Freight factoring companies provide professional account receivable specialists, trained in the trucking industry to effectively manage your company’s collections and streamline the funding process. This additional resource is a cost-free benefit that supports your company’s operational plan by outsourcing back office roles to qualified industry experts.
Learn more about the benefits of freight factoring and how to use this financial strategy in your trucking company’s business plan in the infographic below.
Click on the infographic above if you would like to download or print the pdf version of the infographic.
