Invoice Finance For Transport And Haulage Companies
Compare invoice finance online and have the leading lenders compete for your business. Get the best deal with ABC Finance.
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Running a business in the transport sector can be tricky due to low margins, relatively high costs and unpredictable unplanned expenses.
This is compounded by the fact that delayed payment terms are commonplace in the industry.
For that reason, careful management of cash flow is essential to succeed in this space.
Beyond running a business successfully, growing a business can squeeze your cash flow even more, often restricting your ability to take on strong opportunities.
In this guide, we break down how invoice finance can reduce the stress of running your haulage business.
What is invoice finance for haulage companies?
Invoice finance for haulage companies is a type of business finance that allows a company to release the funds held in their unpaid invoices.
It’s ideal for companies across the sector that accept payments on 30, 60 or 90 day payment terms, who could benefit from receiving those funds quickly.
Whether the business is a road haulier, courier or distributor, you need to maintain healthy cash flow and financing your sales ledger can help you to do that.
How does it work?
Invoice finance works by releasing up to 95% of the value of your sales ledger in as little as 24 hours.
Ongoing facilities allow you to release further funds each time a new invoice is raised.
The process works as follows:
- Invoice is settled – When your customer settles the invoice, you repay the finance and receive the remaining balance. Depending on whether you’re using invoice factoring or invoice discounting, the exact process may vary slightly.
- Submit your invoices to your funder – Submit your invoices to your funder as they are raised
- Receive your funds in 24 hours – Receive up to 95% of the value of your invoice, minus any agreed fees within 24 hours.
What is the best way to secure invoice financing?
The best way to secure invoice financing is to compare offers from different lenders and choose the most suitable option.
At ABC Finance, we offer a simple online comparison that gives the power to you, the business owner.
Simply input your details and have lenders compete for your business.
Each lender will upload terms, aiming to offer you the best possible deal without the need for endless back and forth.
Once your offers are in, you’re free to choose which lenders you’d like to talk to. If you’re unsure, we’ll do a detailed comparison of the offers and suggest the best deals for you.
