How Invoice Finance Benefits Companies in the Courier and Haulage Industry
Running a courier or haulage company can be tough. You’re always on the go, making sure that your client’s goods are delivered on time and in perfect condition. But even the most reliable and established companies can experience cash flow problems.
Every business owner knows that cash flow is essential for keeping your business afloat. You also know that waiting for clients to pay their invoices can be very frustrating and can hold your business back.
That’s where invoice finance comes in. Having an invoice finance agreement in place with an accredited funder can give you the immediate cash you need to keep your business running smoothly. This means no more waiting for clients to pay their bills – you can access the money owed to you immediately!
Experiencing an Unstable Cash Flow?
If your company specialises in the transport and movement of goods around the UK, then you know how important it is to have a steady flow of working capital. Businesses within this industry can experience an unhealthy cash flow for several reasons such as clients taking an extended period of time to pay their invoices, which puts a strain on the company’s finances.
In addition to this courier and haulage companies have several overhead costs that they need to account for, including vehicle maintenance and fuel, labour costs, insurance, licensing fees and salaries. These ongoing expenses need to be paid regardless of whether the company is busy or not. If your business doesn’t have a healthy cash flow or a financial buffer in place to cover costs, then it can quickly find itself in financial difficulty.
So, what’s the solution?
One way that courier and haulage companies can improve their cash flow is by using an invoice finance facility. Invoice finance is a type of funding where businesses can borrow money against the value of their outstanding invoices. This means that instead of waiting for customers to pay their invoices, businesses can access the funds immediately. Access your cash when you need it the most.
Another benefit of using an invoice finance facility is that it can help you to expand your business. When your business is growing, it’s important to have the cash flow to support that growth. Invoice finance can provide the increased capital you need to expand your business and take on more staff, purchase new vehicles, expand delivery routes, and increase your customer base. It can also help you manage cash flow during times of peak demand, such as the holiday season.
In today’s climate couriers and hauliers are busier than ever and the need to maintain a healthy cash flow is essential to ensure that operations continue to run smoothly and that your business is also able to grow as and when required.
Accredited reputable companies offering invoice finance solutions provide their clients with a viable funding alternative, which offers security, stability, flexibility, and immediate access to their cash. It’s a facility that grows with you; a way to manage your cash flow, reducing the time pressures, and the stress of collecting payments yourself. It’s like having an additional financial department and safety net. As you grow your business, it keeps pace with your needs and will help support growth.
Invoice finance provides …
- Access to cash without the business having to sell inventory or other assets to pay urgent bills at a time or price that may not be right.
- Far more flexibility than traditional borrowing – providing finance that grows as you do.
- A quick and straightforward application process – usually, a facility is agreed within 48 hours with the first drawdown of cash to you shortly after. Plus, you don’t have to provide personal collateral.
- An efficient and flexible way of borrowing money.
- You access up to 90% of the value of invoices before they are paid – typically within 48 hours of raising them and whilst most businesses have their whole turnover funded, you choose which customers you want to factor.
If you are interested in learning more about how invoice finance can benefit your business, then please contact us today. We would be happy to discuss your options and help you to find the best invoice finance solution for your business.