Cash flow is the lifeblood of your trucking business. You need it to cover basic operating expenses and grow your business. But even successful businesses can run into problems with this. When you’re making tough choices about where and when to spend money, keep in mind the 5 biggest problems a lack of cash flow can cause.
1) Labor Costs
One of the biggest expenses of any business is labor. What are you supposed to do if you don’t have the cash come payday? Freight Factoring can help you transform aging receivables into cash you need to make payroll. You have to pay your employees by any means necessary to stay in business.
2) Debt Payments
Building and expanding your fleet isn’t cheap. Most companies rely on loans to start-up and grow their fleet. You need to make your debt payments on schedule, but that doesn’t mean your income is arriving on time to do it. Debt repayments are a crucial reason to keep your cash flow up.
3) Truck Repair
A broken-down truck means lost revenue. You need to keep your fleet in a state of good repair and keep them on the road if you want to keep your business going. Truck break-downs can be a surprise expense that you weren’t prepared to cover this month.
4) Fuel Costs
The transportation industry is facing rising diesel costs, and that can make keeping your fleet on the road a challenge. Without fuel, you can’t keep making deliveries, which means you won’t have money coming in down the road. When it comes to fuel costs, you just don’t have a choice. You have to fill up, whether you have the cash or not. That’s where freight factoring comes in. A great freight factoring company can also offer your discounts on fuel.
5) Your Business Is Growing
You’ve been taking on more business than you can keep up with and you’re excited about growing your business. However, it takes a lot of upfront costs to expand. One of your biggest expenses will be buying more trucks to keep up with new business. The up-front costs of investing in your business’s growth can leave you short of cash. Freight factoring services can help you keep up with everyday expenses while you expand.
Every trucking business should learn about freight factoring services and how they can get better rates. What do you need from your freight factoring company?
- Instant approval: When you need cash, you don’t want to wait for approval.
- Cash advances: When you need cash flow before delivery, an advance is essential.
- Fuel discounts: Freight factoring companies like Accutrac Capital can also offer their clients discounts on fuel, one of the most common reasons trucking companies need factoring.
- No set-up costs: Don’t get caught by hidden fees when you need cash flow help.
Another must-have is lower rates. You can get rates as low as 1.59% flat fee factoring from Accutrac Capital. Don’t pay more to keep the cash flowing. Keep costs down while you manage your day-to-day expenses.