The Haulage sector has been warned by the Bank that it is in for a particularly tough year, with profit margins squeezed to the limit and redundancies set to occur.
The RHA (Road Haulage Association) has reported that hauliers have already stripped back non-labour costs as much as possible, but this may not have been enough for many companies, who will have no options left but to reduce staffing levels.
Preparations for the Olympics may also have a negative effect on order books for hauliers, as large road, rail, energy and water projects are postponed during the Olympic period.
And with the temporary equipment shortages and non-availability of police meaning that events such as Glastonbury Festival are not occurring this year, hauliers may continue to struggle to pick up orders during the summer and beyond.
Invoice finance for hauliers
It was also reported by the RHA that smaller companies are increasingly wary to approach banks for finance as they fear existing facilities will be repriced or further personal guarantees requested.
However, there are other methods of external finance for hauliers that can provide increased yet flexible levels of cash.
Invoice finance works by releasing cash for every invoice raised, meaning the facility grows in line with your business’ growth!
Why not get in contact with us today to discuss your ideal funding solution.