Transportation companies, trucking fleets, and freight businesses are feeling a lot of pressures from supply chains. End clients have big demands, especially in Q4, to get shipments delivered so they can fulfill orders. At the same time, many shipments are being held at docks due to COVID guidance, a lack of workers, and apprehensions about the omicron variant. Despite adverse pressures beyond anyone’s control, transportation companies can still overcome supply chain issues without taking on unnecessary debt.
Working Capital Can Weather Supply Chain Ups and Downs
Loan payments and interest rates may rise with adverse economic conditions, but working capital is resistant to all economic pressures, be it in a boom or a recession. Working capital allows transportation companies to cover overhead, make payroll, build up capital reserves, and sustain operations even when they are being pulled from different directions. Ensuring a constant influx of working capital can seem challenging. Transportation companies issue invoices with payment schedules of 30, 60, and sometimes 90 days. However, a lot can happen in that payment window while transportation companies are awaiting payments from their clients. In order to eliminate long waiting periods and receive revenue as quickly as possible, transportation companies use accounts receivable factoring.
How Accounts Receivable Factoring Works
Factoring is a simple, fast, and transparent process that transportation companies use to catch up on unpaid receivables and boost cash flow moving forward. Unpaid invoices are turned into cash, which is made available quickly, thereby eliminating long payments schedules of 30-90 days. By using accounts receivable factoring, transportation companies can build up their working capital reserves, which in turn will help them weather economic and supply chain ups and downs. Accounts receivable factoring is a recession-resistant way to ensure strong cash flow, even when there are strains on supply chains.
Build Up Working Capital Today
New Century Financial provides comprehensive accounts receivable factoring designed specifically for transportation companies. We will turn unpaid invoices into cash and make those funds available within 24 hours. There are no hidden fees or long-term contracts with our services, and personalized account support. Contact New Century Financial today to build up working capital so you can overcome supply chain pressures. Find out more by reading our “Entrepreneur’s Guide to Factoring”. You can call us at 866-582-0775 or Apply Now to get started.