5 SIMPLE TIPS THAT CAN IMPROVE YOUR CASH FLOW
Achieve Financial Stability and Business Growth
You might have made a bunch of money on paper but you have no cash to show for it... then, you hit one big buck on the road and your truck’s in the shop for weeks.
Your truck is your life. It can be a real challenge when you’re balancing all the facets of running your business. So, preparing for the unexpected is essential to maintaining and expanding your business.
You’d be amazed at what simple steps you can take today to help improve cash flow and also result in improving your ability to grow your business.
- Aim high, see what’s coming
What’s true in driving is also true in managing your finances… take a look ahead. From a security point of view, think about all the direct expenses related with maintaining your business. At an early stage, it's indispensable to get a solid grasp of your business and its budgetary needs. Is your business going to spend more than what you’re going to collect for any period of time? Consider fuel, insurance, maintenance, truck payment, and other debts like credit cards or housing etc. Map out a realistic budget to help you estimate your money related necessities.
- Curb your spending
One sure-fire way of hindering cash flow is needless spending. You work hard for the money but that shouldn’t be an excuse to spend. Your income doesn’t automatically expand in proportion to your work efforts. Consider how very easy it is to rack up $25 or more a day eating food on the road. Sticking to your budget goals should not depend on how stressful work is or how you feel about work. You and your employees can use apps like Expensify or Spending Tracker to help manage expenses and avoid the over-spending detour.
- Test drive debt-free financing
It's an unavoidable reality of business that you will have customers that tend to pay slower than others. There is a long-established form of business funding known as invoice factoring, or accounts receivable financing, which gives you access to your money that’s stuck in 30-60 day payment terms. The frustration of being forced to patiently wait to collect is relieved with factoring. A finance organization basically buys your invoices so you can get quick money to use for business expenses. Some factoring companies let you to pick the customers you want to factor, putting you in the driver’s seat and ultimately giving you financial control you need to run the business your way. You can test drive eCapital’s invoice factoring program with a 90-day trial.
- Shifting for seasonal peaks and valleys
In transportation, you’re well aware of the low and slow start to a new year. Next, you experience the gradual ramp-up in business during spring and finally arrive at the busy season, summer. You’re then downshifting as you approach Thanksgiving and shipping demand plunges. Staying up-to-date with cyclic trends such as these will help you forecast your year to guarantee you have the money you need to maintain business. Since summer is your bustling season, set aside cash during those months to compensate for the slower months. You’ll be better positioned to ride out the rest of the year comfortably and ready to roll out lots of miles when things pick up again.
- Brake for discounts and savings programs
You may be familiar with truck stop reward or loyalty programs where you earn points toward free stuff. But did you know that many businesses offer similar discount and savings programs for regular operational expense? For example, Pilot Flying J myRewards gives you points every time you fuel up. Redeem the points you’ve accumulated toward perks like free showers, WiFi and more. At eCapital, we offer a Fuel Card that gives instant savings at major service stations nationwide, including Pilot Flying J. As a result, you can see a considerable amount of money add up in your bank account in no time at all.