Logistics industry suffering from spate of insolvencies

A number of companies in the logistics sector are likely to be hit hard at the start of 2012 as insolvencies across other sectors have a knock-on effect, according to the Road Haulage Association (RHA).

Businesses serving the public are especially likely to be impacted, as figures from RSM Tenon reveal one in eight retailers and one in five food manufacturing, hospitality and tourism enterprises are close to insolvency. As companies shut down and fewer goods are required to be transported around the UK, logistics companies consequentially look set to be hit by less business.

Logistics companies are already suffering from extremely high levels of fuel duties and fuel escalators built into contracts, tightening already-small profit margins, with only brief respite having come from the postponement of a rise in fuel duty.

And with bank credit drying up for many, some have described conditions in the industry as the ‘perfect storm’.

Invoice finance for Hauliers

Hauliers may benefit from considering the option of an invoice finance facility to help supplement cashflow.

Invoice finance, which includes invoice factoring and invoice discounting, is often easier to access than bank credit, as facilities are granted on the basis of the order book rather than the requirement for an extensive profit history.

Why not browse our website for more about our invoice facilities tailored specifically for hauliers, or give us a call today and find out just how we could give your business a boost.