Whether you’re new to the trucking industry or have been an owner-operator for years, one phrase that will dominate the financing process is “Cash is King.” Small businesses rely on cash and liquid assets to cover any planned and unexpected expenditures, and can often show their ability to succeed through the availability of working capital. In the commercial transport industry, the continual costs of fuel, maintenance, and payroll can make it difficult to balance your company’s financial status.
If you’re on this page because you’re worried about the availability of your working capital, 10-4 Financing, LLC is here to help! Our team partners with finance companies and dealers across the country to provide top-notch commercial truck financing for drivers at all stages in their career. Whether you’re new to the industry or you are looking to upgrade your fleet, our truck finance specialists are here to help!
Today, we’ll discuss a few simple steps that may help you boost your working capital to free up more spending power to truly grow your business. If you’re looking for a business line of credit, financing for a truck or trailer, or any other financial assistance, be sure to contact us today!
What is Working Capital?
This term is used in financing to describe the amount of capital (or assets) available after subtracting the costs of day-to-day operations. Companies of all sizes must assess their available capital in coordination with their operating costs to determine if additional funding is needed to cover any regular or unexpected costs.
Expand the Working Capital of Your Truck Business
In order to create your assets while decreasing financial liabilities, you will need to focus on reducing expenditure wherever possible in addition to streamlining the payment process for your customers.
Reduce Expenses Where Possible
Overhead can prove to be a major pain for many companies, making it a smart place to start in order to increase your company’s working capital. Owners have tried a number of cost-effective ways to reduce their operating costs, including outsourcing their marketing, accounting, and more. Look for any costs that seem higher than necessary, and do research to ensure you are getting a good deal on all of your routine expenses.
Focus on Your Invoicing System
The speed, accuracy, and convenience of your invoice system may help to improve the amount of capital you have to work with. Truckers relying on an inconvenient way to process invoices may struggle to get paid on time, causing future problems in terms of capital. Be sure that your invoices are going out in a timely manner, defining the payment terms clearly. Follow-up reminders are often beneficial, so be sure to refine your system and increase your rate of payment.
Delve Into Your Accounts Payable
Your current expenses may be putting a lot of stress on your bank account each month. It may help to examine your cash flow cycle and change your payments accordingly. Many companies look for cost-effective ways to stretch out their payment windows, allowing for more cash in-hand.
Manage Your Inventory
One way to reduce the likelihood of unexpected costs popping up is to properly maintain your fleet. Drivers who take the time to inspect their inventory and its cost-effectiveness can opt to reduce costs where possible. If one truck has continually broken down over the years, it may prove beneficial to trade it in for a new vehicle.
Need help finding the right truck for your needs? Browse our inventory before filling out your online application!
Consider Business Factoring
One way to quickly boost your working capital is to get the money owed to you by customers through a truck finance specialist via bill factoring. Unlike a loan, factoring gives you the opportunity to get an advance on your invoices. Our semi truck financing team can advance you 85-97% or more of the value of your invoices, getting you the money you need to make decisions today.
Unlike most forms of collateral, invoices serve as a future promise of payment in cash assets. This style is advantageous because it provides you access to untapped money without going into debt.
Partner With a High-Quality Truck Finance Company
Once you have done everything possible to reduce your overhead and increase your working capital, the next step is to open a business line of credit with a reputable truck financing company. Whether you’re planning on starting your own trucking business, expand your current operations, or require additional capital to maintain and upgrade your fleet, it pays to sign on with a quality finance specialist.
10-4 Financing is here to deliver ideal results for each of our clients, offering fast, effective approvals and versatile financing terms for all borrowers. By partnering with numerous lenders nationwide, we’re able to provide loans for truck companies, as well as lines of credit to keep working capital protected.
Even if your business is doing well, an open line of credit may still provide peace of mind in the event of any unplanned emergencies. Companies can finance all of their truck needs through 10-4 Financing with complete control, simple invoice tracking, and more. Contact us today to learn more!