The logistics industry is the lifeblood of global commerce, that much is true. Cash flow is critical to keep the wheels turning yet remains one of the biggest challenges too. Without Invoice Finance, anyway.
Delayed client payments and rising operational costs all have their impact on transport and haulage businesses and their ability to rise to the next level. What may be just a few short weeks or months to a client can cause huge operational hurdles for a logistics business that needs to keep moving.
That said, these challenges need not cause any further problems where Invoice Finance is concerned.
Invoice Finance is a powerful tool designed to help keep your business driving forward, and specifically allowing logistics businesses to navigate common financial hurdles.
Invoice Finance Process Explained
If you’ve never used or heard of Invoice Finance before, it may seem daunting or confusing. In reality though, it couldn’t be simpler.
If you have an Invoice Finance credit line, the process should look a little like this…
- Logistics company delivers the good or services to the client as agreed.
- An invoice is generated to the client for payment.
- The lender advances a significant portion of the invoice’s value (often up to 90%) to the logistics company upfront.
- It then becomes the lenders responsibility to collect payment from the client.
- Upon receiving payment from the client, the lender deducts its fees and returns the remaining amount to the logistics company.
The Benefits of Invoice Finance
Boosting Cash Flow
One of the biggest benefits Invoice Finance can offer a logistics company is the immediate access to cash, otherwise held up in outstanding invoices. Instead of waiting weeks or months for clients to settle their bills, these companies can access funds quickly and when they need them most.
In an industry where operational costs like fuel, maintenance and payroll are ongoing and unpredictable, access to cash has never been more important. Invoice Finance offers a new level of financial stability to keep things running smoothly.
Enabling Business Growth
The nature of Transport and Logistics often means businesses need to invest in new vehicles for the fleet, technology for the office or equipment for the drivers. If they are unable to do so, operations can soon become jeopardised as well as the businesses’ ability to remain efficient and competitive in the market.
Invoice Finance gives access to the necessary capital without taking on additional debt or pressure. By leveraging cash owed to them in unpaid invoices, these businesses can make the investments they need to, when they need to.
Streamlined Operations
The administrative burden of chasing unpaid invoices can take its toll. With Invoice Finance, the lender takes on the responsibility of debt collection, freeing up the business’s time and resources to focus on more productive operations.
Invoice Finance offers a financial lifeline for the logistics industry. We are aware of the unique challenges these businesses face and work with lenders who can offer credit lines that help to support and overcome these challenges. Think: boosted cash flow, new growth opportunities and streamlined business operations.
If you want to rev up your cash flow this year, Invoice Finance may be just the thing. Speak to one of our specialists and explore the options available to you.
Apply before the 31st March and you may be able to benefit from:
- ✓ No arrangement fees
- ✓ 0% Discount (over BoE base rate)
- ✓ No Minimum Service Fee (Service Fee % still applies)
- ✓ Free Same Day CHAPS Fees
*Subject to a 12-month minimum term. T&C’s apply.
Make a free, no-obligation application in 2-minutes at www.moorgatefinance.com/apply-now (free of credit checks too!)