Every trucking company hopes to be profitable but it can be difficult to sustain profits without sufficient cash flow. It is easy to underestimate the importance of maintaining an ample cash flow and it is not uncommon for trucking companies to lose out on profits because they lack the cash flow to take on new loads. Proper cash flow will protect you trucking company from financial trouble and unforeseen expenses while also making it stronger and more competitive by helping to maximize profits.
Don’t let your trucking company lose profits due to an insufficient cash flow. Instead, follow these 4 tips to maximize your trucking company’s cash flow and boost profits:
- Organize back office
- One of the easiest ways a trucking company can maximize its cash flow is by maintaining a well-organized back office. By keeping legible, accurate records and making paper work easily accessible, trucking companies save time and money. Freight bill factoring companies offer back office support with free customer credit checks and will also help trucking companies by organizing their paperwork.
- Optimize for efficiency
- Efficiency is the key to profitability. Make sure your trucking company is using the most up to date technology and efficiency practices to keep from wasting time and losing money. Electronic logging devices (ELDs) are a great way to boost the efficiency of your trucking company. Regular maintenance to your fleet will also help increase efficiency and save you trucking company from unforeseen expenses. Online load boards are another way that trucking companies can be more efficient by having instant access to new load opportunities. Freight bill factoring companies provide free access to online load boards so trucking companies can maximize their cash flow.
- Use fuel cards
- Fuel cards are a great way to save your trucking company money and increase profits. By using an EFS or Comdata fuel card, truck drivers can enjoy discounts at refueling stations across the US and Canada. Fuel cards also offer trucking companies an alternative and more efficient way of paying their drivers. With instant access to the account, both the drivers and the dispatchers can send and receive funds instantly. Further, owner-operators can monitor their driver’s spending with instant access to fuel card accounts. Freight bill factoring companies supply fuel cards to trucking companies, helping them to save money and boost profits.
- Factor freight bills
- One of the best ways to maximize the cash flow of your trucking company is to factor freight bills. When you haul a load, simply send the freight bill to a freight factoring company and receive immediate cash instead of waiting for payment from customers. Freight factors will collect directly from your customers so you may still be eligible for freight factoring even if you have poor credit. By factoring freight bills, trucking companies can keep taking on new loads increasing their cash flow. With more working capital on hand, trucking companies are able to maximize their profits.
Interesting in maximizing the cash flow of your trucking business and enjoying the many perks of freight bill factoring? Fill out our online application or call 1-855-322-8671 for a free quote today!