• Transportation Factoring Companies For Haulage And Couriers

    Transportation factoring for haulage, couriers and road transport companiesTransportation and distribution are key sectors for the use of factoring services. Many companies within those sectors use this form of funding, in order to unlock cash to improve their cash flow. These can include haulage, distribution and courier services companies.

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    Transportation Factoring

    Transport companies account for a significant proportion of the businesses that use invoice financing services. Distribution and courier services companies have accounted for a large proportion of client numbers within the sector as cash flow funding is often helpful when faced with rising fuel costs and the need to pay for vehicles and staff costs.

    There are some case studies on our site for the transport factoring sector, one where we have found a large, 50% annual factoring cost saving for one haulage company that was already using factoring. We were also able to find a selective invoice financing arrangement for a courier services company that did not require the Directors of the company to give any personal guarantees to the finance company.

    Whilst factoring (funding and credit control) is one option for hauliers, there are also funding-only options known as invoice finance or invoice discounting - if you want to retain the credit control function yourself.

    In some countries, such as the USA, there are specialist transportation factoring companies that deal with only that sector. However, in the UK, most factoring companies deal with the full range of transport companies, haulage, freight, couriers and trucking companies. Courier services are often also included within the same sector and are also highly suited to the use of invoice financing.

    The key benefits of a factoring facility are the release of cash against unpaid customer invoices, and this cash can be used to boost the cash flow of your business, as you don’t have to wait around to be paid by customers.

    The credit-control service, that is included within the facility, also means that you do not need to undertake this function in-house, provided you choose a supplier that delivers a comprehensive credit-control service.

    Read an example of how we found a new startup haulage business recourse factoring.

    Paying Fuel Costs

    In the case of transport companies, fuel can often be a high cost, as can leasing payments in respect of vehicles. The proceeds from receivables financing can be used for paying fuel costs in addition to other costs, such as labour and monthly overheads.

    Vehicle & HGV Leasing

    In addition to funding against unpaid sales invoices, our finance partners are able to help you arrange various forms of purchase finance, such as leasing, in respect of vehicles. This can include cars, vans, lorries, and HGVs (heavy goods vehicles). This kind of finance can be included as part of a funding package for a transport company (or on a standalone basis), either against new vehicles or existing stock.

    More Information

    For more information please speak to Sean on 03330 113622 and he will happily put you in touch with suitable transportation factoring companies.

    Case Study - Factoring Ambulance Services For Patient Transport.

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Examples of funders we work with:

investeccapitalsolutions
pennyfreedom
ifg
nucleus
igf
leumi abl