Daily operations, payroll, fuel, and maintenance issues all require immediate access to working capital. Due to late payments and unforeseen expenses, working capital can often run low. Check out these 4 ways to increase your working capital with Porter Billing Services.
#1 Invoice Collection Process
Start with your invoice system. Do you have a process in place that is efficient for both your customers and your fleet? All invoices should be sent out on time and should include comprehensive payment terms. You should also have a process in place for delays. For customers that submit payment late, there should be clear terms that explain consequences.
#2 Accounts Payable
Look at your processes to see how you can maximize making payments on expenses. This way you can keep your assets liquid longer. Work with your partners to determine payment terms that work effectively with your cash flow cycle. It may also be advantageous to see if your partners offer early payment discounts.
Start with fixed costs. Take a look at overhead expenses to see if there are ways you can save and thus increase your working capital. Likely, you can lower fixed costs in payroll and marketing expenses. You may also find that you are paying for equipment repair fees regularly. If so, perhaps it is time to invest in new equipment rather than paying for regular maintenance. Look at all of your costs to analyze what can be adjusted.
#4 Freight Factoring
Lastly, and most significantly, your fleet can invest in freight factoring to eliminate wait time between invoice and payment. Through freight factoring, you are given immediate access to your funds. Daily operations and expenses like fuel no longer remain an issue. Simply deliver your load and submit your paperwork. Your freight factoring company will do the rest.
Factoring services allow immediate access to working capital without your fleet assuming debt. With a trustworthy factoring company like Porter Billing Services, there are no hidden fees. Rather, you are given more control over your funds while handing over the stressful collections process to a freight factoring company.
Porter Billing Services Can Help!
From recourse factoring and non-recourse factoring to our billing program, Porter Billing Services can help your fleet reach new levels of growth and efficiency. Learn more about the services we offer. Contact us today!