Should you listen to the news, you’ve almost certainly heard of the uncertainty of the economic climate. For every encouraging piece of news, we are told some thing discouraging. The American Trucking Association recently released figures that showed truck tonnage rose 3.9% in July from a year ago, but it also fell 1.3% from June ‘11. To help our trucking clients get around these unpredicted ups and downs successfully, we questioned our transportation team for a few blocks of advice:
While looking for a funder, choose one that has many free services that save you money. When you’re going to choose a factoring company, why not pick one that gives you discount rates! Some factors are large enough to get discounts on products and services you witout a doubt use. Search for factors that will provide fuel cards, discount rates on gas or insurance, and even free credit checks.
Think about factoring or spot factoring. In a slow economy debtors tend to stretch out repayments, tying up your working capital in outdated invoices. When business is great, having more access to quick cash can help you acquire on more jobs. In both situations, consider having a cash flow solution in place. A factoring company will provide you with quick cash for your entire receivables. A spot factor will work with you on invoices from as few as one slow-paying customer. Take into account both options carefully. The spot factor’s fee will most likely be higher, but it may be a better choice if most of your customers pay quickly.
Haul loads only for businesses with sound credit histories. Knowing the current credit profile of the businesses you do business with is the surest way to reduce your risk of not being paid or of being paid later. Don’t let your desire to pick up a load cloud warning signs that a customer is about to go out of business. Did they pay on time the last time you worked with them? Do you know other truckers who recently have had good experiences with them? Do you work with a finance company that has access to their credit worthiness?