- 11 Apr
Factoring Price Reduction For Haulage Company
This is a great example of a recourse factoring price reduction that we found for a haulage company. A circa 50% cost saving on their existing quote.
Factoring services provide a business with both upfront money against unpaid invoices, and help collecting in their payments from customers. It can improve the cash flow of a business as the business no longer needs to wait to get paid by its customers.
This can be particularly helpful to hauliers and haulage companies that have expenses to pay, such as fuel, vehicle leasing costs and staff wages. Normally these costs need to be paid, before the customer pays their invoice, so getting money against the invoice when you raise it can be very helpful in bridging the cash flow gap.
Credit Control Help
The benefits of credit control support must also be considered. This is included within a factoring facility, although the level of service will differ dramatically between factoring companies. Many factors will undertake all the credit control activlty for their client, using specialist staff that will get to know their customers and form close relationships.
Having the weight of a well known name collecting from customer, using a system of regular credit control follow ups can also help get payments in quicker. This can reduce or eliminate the need to have your own credit controllers or the need to do any of the chasing yourself, a huge saving for many businesses.
Factoring Price Reduction
In this particular case, the haulier was already using a factoring company, and we estimated that they were paying, in the region of, £12K total fees on just over half a million of annual turnover. Total fees includes both service charge and discount charge (read how factoring charges work).
We searched the marketplace for them, and were able to find factoring quotes that we estimated would reduce their total fees but approximately 50% per annum, a big saving.
Find Out The Cost
To find out the cost and to see how much we could save you, please call Sean on: 03330 113622 or request a call back.