A new survey by the Road Haulage Association (RHA) in conjunction with the Department for Transport has revealed that difficulties accessing capital and maintaining a decent cash flow is preventing the Haulage sector from seeing growth.
With many suppliers of diesel requiring payment either within one week of delivery or sometimes even before delivery goes ahead, hauliers need strong cashflow to be able to get the fuel resources they require to take on the bigger contracts. Together with the fact that haulage customers, especially the large companies, are taking longer and longer to pay due to their strong market position; life is increasingly tough for hauliers, particularly SMEs.
Congestion on the roads was also said to be a barrier to growth, as efficiency decreases and the time taken to deliver goods increases.
The RHA’s director of policy, Jack Semple, was concerned with the results of the survey: “These factors together mean that transport firms are squeezed on both cost and revenue and finding it increasingly difficult to fund growth in their businesses and to investment in new equipment”.
Have you considered Invoice Finance?
Skipton Business Finance has a really good relationship with hauliers.
We have provided invoice finance funding solutions for a wide range of hauliers in the past and appreciate their reliability and the solid nature of their invoices.
Our financial products, such as invoice factoring and invoice discounting, allow our clients to get cash for their invoices straight away, so instantly providing the capital and cash flow to help them expand and take on the bigger contracts.
If you’re a haulier looking for a funding option, why not give one of our award-winning staff a call today, to find out more about our fast and flexible invoice finance facilities and to see what we can offer you.