The idea that “cash is king” might as well have been created by someone in the trucking industry. Cash flow can make or break a trucking company, and it can be near impossible to sustain profits without a steady cash flow.
Unfortunately, getting reliable clients or rendering top-notch services aren’t the most common culprits for a failed trucking business. Many times, it comes down to poor cash flow management. Whether you’re looking to expand your fleet, invest in some new equipment, or just keep your business afloat, you’ll want to take note of our advice on how to build cash flow for your trucking business.
Build Cash Flow for Your Trucking Business
Trucking rookies and veterans alike know that there are some solid options for building cash flow. We’ll highlight some of the best to help give you an idea of where to start.
- Keep a Close Eye on Costs: Your first line of defense in managing your finances is to know where, when, and exactly how much you spend. Monitor mileage and daily operations, do you see any room for improvement? Regular review of your costs can help eliminate any significant problems before they arise.
- Factor Freight Bills: Factoring, or accounts receivable financing, is a reliable and affordable method for sustaining cash flow. A freight factoring company, like Interstate Capital, will buy your unpaid accounts receivable giving you instant cash and more time and energy to focus on your business (not tracking down delinquent payments).
- Lease Your Equipment: If you’re in the early stages, you could consider leasing equipment, which has lower monthly payments than if you had purchased the equipment. In turn, you’ll have some extra cash to work with until you can buy. Plus, lease payments are considered a business expense and will give you tax benefits.
- Seek Expert Help: A CPA or bookkeeper can help keep your finances in order. Leverage their expertise for advice on cash flow projections, anticipate any potential cash flow issues in the future, and save yourself come tax time.
- Use Loyalty Programs: There are many benefits, loyalty programs, and offers for truck drivers and truck driving companies. Look into the best options in your areas of operation. Signing your fleet up for a fuel card can save you money on essential aspects of your operation as well as on preventative maintenance. Some places even offer free things like coffee, showers, and other services that can save you cash on daily necessities.
As you work to grow and build sustainable business practices, we hope these tips will come in handy! If you want to learn more about freight bill factoring, you’re in the right place. FreeFreightSearch.com offers members an exclusive opportunity and time and money saving benefits when working with Interstate Capital.
We’re Here to Help
Interstate Capital has been serving motor carriers since 1993, offering freight factoring services. Call a freight factoring specialist today at (800) 422-0766 or click on this link for an instant online factoring rate quote.