Are you planning on investing in new equipment or expanding your fleet this year? If so, there are more tools than ever that are available to business owners who want to find new sources of funding – but they only work if you know where to find them. Continue reading to learn 4 of the best ways to take control of your cash flow and grow your business on your own terms.
1. Use Factoring to Solve Cash Flow Issues
Counting on future income and planning for generally uneven cash flow can prove to be a challenge for even the most seasoned trucking companies. Dependable clients tend to pay around net-60 terms, , which means waiting a couple of months to receive full payments. This is a headache when managing accounts receivable, and it can become a problem when dealing with debt or investment.
The solution lies in finding the right source of dependable factoring – i.e., the process of converting accounts receivable to cash by selling collectable income. It’s important to find a factoring company that knows the specific demands that your business faces and has the financial resources necessary to help you achieve your growth goals. Look for companies that have experience in offering services to the transportation industry since they will be well-versed in this type of factoring and may be able to offer recommendations based on your unique plans. Plus, these companies also tend to offer extras, such as free load boards, tire discount programs, and other practical benefits.
2. Acquire Alternative Funding for Expansion and Stability
When your cash flow is tied up in other necessities, it can be difficult to find the funds you need for further expansion. This is especially true for new trucking businesses because they can have trouble securing capital from traditional business sources. However, a number of alternative funding options are available for small businesses. As you prepare to expand, consider looking into popular options such as working capital advances, which are based on future business activity rather than collateral. Working capital advances can be particularly beneficial when your company faces an emergency or an important investment decision because they can be obtained easier than conventional funding from banks and similar financial entities.
3. Link up with Loyalty and Reward Programs
Truckers have many opportunities to use loyalty programs that are linked to fuel cards and similar offerings. Since these programs are connected with the most common costs on the road, particularly fuel, they will get used often. Rewards in these programs range from free showers to cost-saving rebates and discounts on common company costs. There’s no reason to shy away from using these trucker-oriented loyalty programs. The key, however, is in the program’s details. Make sure you read the fine print and find the most useful rewards and rebates for your particular trucking business. See if there are any associated fees and look for any included benefits as well. For example, free expense reports are useful if you and your employees use a loyalty card in connection with all of your on-the-road expenses because those expenses will be accurately detailed for future accounting work.
4. Keep Watching Your Costs
We don’t need to tell you how important it is to monitor mileage and day-to-day operations when it comes to controlling your cash flow. However, there are many other ways to watch your expenses. With a little bit of creativity, you can find new ways to save more. Here are a few ideas to get you started:
- Match the truck to the load. Wasting a lot of horsepower on a light load will not improve your mileage, but it could create additional expenses in the future.
- Watch your competitors. Take a look at trip sheets when you start a new job to see how the other truckers are performing – then work on how you can do better and get more jobs.
- Plan ahead for new jobs. Try to choose a specialty early. Then you should invest in both experience and training. Refrigerated trucks and other specialties tend to be much more lucrative. Also pay attention to what industries are on the rise and which are offering lower-cost jobs. This will enable you to go where the money is and make more with the right load management.
If you’re looking for fast funding for your business, eCapital can help. No matter what your financial needs might be, contact us for your free quote today at 954.686.7320 or fill out the form above.