Recent, heavy demands on the supply chain have caused issues that are affecting almost everyone, especially members of the supply chain itself. Transportation companies, freight businesses, and commercial fleets are being hit hardest and may be taking serious financial hits as a result. At J D Factors, we can show you how to roll with the punches without the debt.
Increase
Financial Stability
The
key to financial stability is maintaining a steady inflow of working capital.
So that even if interest rates or loan payments continue rising, you’ll be able
to sustain your business operations. One way to increase your working capital
involves the payment schedules of your invoices. The typical payment windows
for an invoice issued by a transportation company is 30 or 60 days. Sometimes businesses
even offer 90-day payment windows. These lengthy waiting periods mean that
you’re not generating revenue as quickly as you’re actually able to.
During
the current supply chain crisis, you want to receive your revenue as soon as
possible by removing these wait times. That’s why many transportation companies
are using accounts receivable factoring to gain access to their revenue
more quickly.
With
factoring, any unpaid invoices are turned into cash and quickly made available.
This is a fast, simple process that lets you access unpaid receivables while
increasing cash flow. Factoring also eliminates long payment windows! The consistent
working capital received from factoring will help you survive the uncertainty
of the supply chain and other economic factors. With over 30 years of
experience J D Factors understands the needs of those in the transportation
industry and we’re prepared to walk you through the type of receivable
factoring that will make you feel confident in the face of today’s economic
environment.
Promote
Growth and Efficiency
This
doesn’t mean that factoring is only for struggling businesses, rather, factoring
is utilized by many flourishing organizations to promote growth and increase
operational efficiency. The stable cash flow stimulated by factoring further
increases your control as you can spend less time worrying about invoices and
more time making the critical decisions that separate you from your competitors.
If
you’re still hesitant to pursue factoring, you should know that not all of your
invoices need to be factored! Together, we can decide how many invoices you’d
like factored and the priority of each. With heavy supply chain demands,
invoice factoring offers a lifeline of stability to companies within the
transportation industry. Give our team a call to learn more.
