IF YOUR TRANSPORT AND LOGISTICS COMPANY IS TIRED OF WAITING AN AVERAGE OF 60 DAYS TO GET PAID FOR YOUR INVOICES, WE CAN HELP!
Running a transport company comes with its fair share of challenges, and one significant hurdle is managing cash flow. With clients taking up to 60 days to pay after delivery, this creates a strain on finances, especially during the Christmas period. However, the adoption of invoice finance has proven to be a game-changer for one Adelaide based transport company, alleviating the stress of delayed payments, and ensuring smooth operations even during the holiday season.
The 60-day payment terms were becoming increasingly difficult to manage but were a necessary part of attracting and retaining contracts. The delay in receiving payments created cash flow gaps that impacted important financial obligations, such as paying employees during the Christmas payroll periods. This created anxiety and sleepless nights for the business owners, who struggled to find ways to bridge the gap and ensure the financial stability of their company. Recognising the need for a reliable solution to address their cash flow challenges, the transport company decided to explore invoice finance.
Invoice finance is a financing option that allows businesses to access funds tied up in their outstanding invoices before they are paid by their clients. It provided the company with much needed working capital, enabling them to meet their financial obligations and maintain smooth operations. We established a $100,000 facility which freed up their cash from their accounts receivables allowing them to carry on with deliveries.
With invoice finance, the transport company submitted their invoices to Brunswick, and we then advance a percentage of the invoice value, typically around 80%, within 24-48 hours. This advance provides immediate cash flow, allowing the company to cover expenses without waiting for clients to pay. Once the client pays the invoice to Brunswick, we then deduct our fee and releases the remaining balance to our client.
For our Adelaide based transport company, adopting invoice finance has been a transformative solution to their cash flow challenges. By leveraging the power of accounts receivable finance, they have successfully navigated the 60-day payment terms and overcome the financial strain during the Christmas period. With improved cash flow, reduced stress, and increased working capital, the business owners can now rest easy, knowing that they have the financial stability to handle any future challenges that come their way.
Image: Mack Trucks 2023