From end consumers to mid-market all the way up to manufactured goods and raw materials, America relies on the transportation industry. As one of the cornerstones of our economy, to keep things moving on an upward trajectory, the transportation industry needs to service businesses and consumers at all levels. However, transportation companies also need to maintain a strong positive cash flow to follow through on the demands of a client base with a national – if not global – reach. In an economy with an ever increasing pace, the transportation sector needs solutions to maximize cash flow now and for the future with transportation accounts receivables.
The Speed of Transportation vs. the Speed of Business
The transportation industry has the ability to get from Point A to Point B over the course of a few days, and even overnight. The industry understands logistics and implements strategies to meet the demands of a much faster marketplace than just a few years ago. At the same time, the rules governing cash flow for the transportation industry have not changed in many decades.
Invoices and contracts are still paid according to staggered schedules of 30, 60, and 90 days. This means that transportation companies are often using more internal capital in a single month than they are receiving from their clients. The strained cash flow can result in transportation companies being unable to cover overhead, payroll, maintenance, and more. There needs to be a solution to expedite revenue so transportation companies can meet demands, thrive, and grow with transportation accounts receivables.
Everything Old is New Again
To accelerate payments, transportation companies use accounts receivable factoring. Believe it or not, accounts receivable factoring has been around since the invention of commerce, and can eliminate staggered payment schedules for invoices. Instead of waiting a month or more to receive payments from clients, accounts receivable factoring converts unpaid invoices into cash, making funds available quickly and transparently. This boosts cash flow so transportation companies can cover expenses, make payroll, and expand into new areas to get a stronger foothold in the marketplace.
New Century Financial is a national leader in accounts receivable factoring services for the transportation industry. We will convert your unpaid receivables into cash and make funds available within 24 hours. Get an edge on the competition and accelerate your cash flow by contacting New Century Financial today.