We know that without trucks, Australia stops — but without solid cash flow, your trucking business could stop too. The transport and logistics industry is notorious for slow-moving cash flow, and the economic events over the last few years have only made things even harder on truckers.
Earlypay helps Australian businesses thrive and knows just how to lend a hand in the transport and logistics industry. We reveal the roadmap to keep your cash flow moving.
Why is cash flow so slow in the transport industry?
Two significant factors cause slow cash flow for truckers: upfront costs and long payment times.
Upfront Costs
Many of Australia’s trucking companies are small or family businesses that work to fairly tight margins. You’re probably well aware that before you can bill your customers, you incur most of the costs required to get on the road to start the job. Personal living costs, wages, tyres, fuel, insurance, registration, and maintenance all need to be covered before you can even jump in the cab. This means spending money before you’ve had a chance to earn it.
Long Payment Times
If forking out funds to ensure you’re ready to take on the next job isn’t stressful enough on cash flow, truckers also have to bear notoriously long wait times before getting paid for jobs. The main reason for small trucking businesses going under is largely cash flow — which is unsurprising when their large clients are paying their invoices well beyond 30 days. In some circumstances, truckers can be waiting up to three months to get paid for jobs — that's a long time to go without any form of finance!
How Earlypay can help trucker’s cash flow
If the only real option for you at the moment is to accept longer payment times or miss out on jobs, then we may have a business finance solution to keep the wheels of your business turning.
Invoice Finance
More and more, the transport industry has been embracing what’s called invoice financing. Essentially this is a way to access up to 90% of the invoice value as soon as your load is delivered. This means that you won’t need to wait around to be paid to fuel up for the next transport job. You’re free to fuel up, pay wages and invest in your business without having to wait around for your customers to pay.
Earlypay’s invoice finance options have the flexibility to support trucking businesses of all shapes and sizes. If you have outstanding Invoices with other Australian Businesses, then you might be eligible to unlock cash sitting in invoices that are yet to be paid to free up your business cash flow.
Asset Finance
Earlypay can also offer equipment finance options to help fund the purchase of new and used assets for your business. If you have a truck that could really do with an upgrade, our equipment finance could get you on the road in a new set of wheels — even a set of 18 wheels!
Equipment finance is one of the most accessible and flexible forms of finance. The transportation industry is one of the most common industries that use asset finance to their advantage. If you don’t want to dump all of your hard-earned cash straight into your next wheels, trailer or cab purchase, then equipment finance could be the solution you’ve been looking for.
To understand how our business finance solutions could work for you, simply submit our enquiry form, and our friendly team will be in touch!
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].