Transport Using Factoring

Trade Debtor Finance consultants Pty Ltd (TDFC) was contacted late last year by a transport companies, In most cases they had 3 trucks with 2-3 debtors. This firm’s owners were quick to explain that a shortage of cash flow has caused a problem. No cash means issues with a fuel bill and that it was causing work to slow down.

Typical introducers would just give them a few lenders in an effort to sign them up. Not our firm. TDFC we understand that Factoring comes off the profit margin of companies. Transport margins are very competitive and often tight. One break down in a truck erodes those margins away totally.

We explain Factoring.

Our consultants explain that they could get a no lock in solution to fix the immediate problem. In some cases this would be costly and that if they could sustain a more lock in solution, they could develop a plan going forward.

One simple question? What can you do with the company once you’re back on top of your cash flow issues and have money in the bank. Get another truck into work was the consensus. Start it working with another debtor spreading risk. With excess to cash flow, wages wouldn’t be a problem. As work increases, you can increase profits as were using the factoring companies money to do so.

It has been proven that within 6 months, companies have landed contracts and if required more trucks. Yes, they have a lot more money and profits, however, they also have a growing business with much more strain on themselves. Another situation that TDFC will advise on as they need help with infrastructure.

Transport Using Factoring

Would you like to know more about Factoring, DO’s and DON’Ts and what you can do to use this product to your benefit? Please contact TDFC today for an obligation free quote in writing. Go to debtor Finance Questions and Answers.