Debtor Finance Drives Truckers To Another Level

Debtor Finance for Transport Companies

Debtor finance is the favoured tool of many truckies faced with a financial breakdown.

It is especially helpful when a company is rapidly expanding and customers are taking too long to pay.

One trucking company found its growth was strangled because of exactly this situation.

Headache

Many of its customers took 30 – 60 days to pay their bills, but the firm’s 110 employees had to be paid weekly.   The company’s weekly outgoings were almost $300,000 and finding the cash was a serious headache.

Added to that,  extra contracts were being offered requiring the purchase of new equipment. The cash flow crisis meant the business had to turn down many lucrative opportunities.

Partner

That changed when the company partnered with a debtor finance company.

By bringing their cash flow forward they were able to take on the additional growth and they haven’t looked back.

The business now has 77 trucks and turns over nearly $19 million a year.

The directors wish they had taken on this type funding earlier.

Ready cash

Debtor finance helps transport companies in a number of ways.

The most obvious is that it puts working capital into a company’s bank account to ensure wages and outstanding debts are paid in a timely manner – that daily operations aren’t choked by lack of funds.

It also helps those operators who carry time sensitive freight. They need to ensure their equipment is always in tip top condition. Having cash on hand to turnover or maintain that equipment helps keep their contracts in place.

Finally, it’s a boon when large outlays need to  be made on equipment which won’t begin earning money for a while. Debtor finance allows your business to operate without suffering the initial pain.

This success story was obtained from the Debtor and Invoice Finance Association of Australia which is the peak body representing debtor and invoice finance providers.

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