Steady cash flow is essential for successful trucking operations of all sizes, but that can be easier said than done. Maintaining a healthy cash flow can help you grow your business and potentially boost profits.
If your trucking company is in its first year of business, it’s critical that you are able to maintain positive cash flow. Regardless if your business is established or just starting up, check out these tips to running a successful trucking business.
Maintain Cash Flow with These Tips
- Assess Insurance: Insurance is often one of the greatest fixed costs for trucking companies. Insurance is a necessary expense for owner-operators, but how can you avoid paying too much? Look at raising your deductible to lower your monthly premium. Evaluate your insurance yearly as well as your credit rating. When your credit rating improves, so do your odds of getting better insurance rates.
- Examine Expenses: Cutting costs is a quick way to save on cash. Take a hard look at your expenses. Are there areas where you could save: costs around the office, payroll, service providers, etc? Making smart choices when it comes to your trucks is also important. Do this by matching trucks to loads and planning routes ahead of time to ensure fuel efficiency.
- Freight Factoring: Managing accounts receivable can become a hassle when you’re waiting months for a payment. Freight factoring can get you money and save time by fulfilling payments up front and giving you more time to focus on growing your business. You aren’t incurring any debt or losing time waiting for payments.
- Use Loyalty Programs: Truckers have access to tons of loyalty and rewards programs related to typical road costs, like fuel. Take advantage of what’s out there, but be sure to do your homework first and look over the fine print, so you find the best option for your business.
- Strengthen Connections: Dedicate time to building more professional connections, using platforms like LinkedIn or Facebook groups. are great ways to connect with relevant professionals. Connections can lead to new customers.
The Bottom Line
Facing obstacles when it comes to cash flow is nothing new, especially for trucking companies, but the difference is that a short stint with unstable cash flow can bring operations to a halt.
Avoid disaster and keep your business going strong by putting these suggestions into practice. The safest and surest way to secure your cash flow is through freight factoring. Get an advance on your freight bill as soon as you deliver the load.
Get your factoring rate instantly online by filling out this form! FreeFreeightSearch.com members receive unique benefits from Interstate Capital like fuel discount cards, no application fee, collections services and much more.