Transport sector sees output fall in April – don’t let cashflow issues hold you down!

The transport and storage sector saw a 0.7% fall in output during April, it was revealed by the Office of National Statistics (ONS) yesterday.

Other sectors also recorded decreased output, with the service sector seeing its biggest contraction in 15 months, with a drop of 1.2% being recorded. The hotel and restaurant category fared better, seeing a 0.9% rise in output.

The ONS said that the figures were affected by the royal wedding as well as the unusually hot and dry weather recorded across the country. Some economists were less sure that the fall in output could be blamed on these factors, and said the figures were worrying for the second-quarter GDP growth prospects.

Hauliers in the UK often experience cash flow crunches when there is a drop in output, whilst having to purchase increasingly expensive fuel and pay staff long before they receive the money for their work.

Invoice factoring and invoice discounting specialists Skipton Business Finance understand that this can cause a drain on working capital, especially when the haulier has to then wait 30, 60 or even 90 days until an invoice has been paid.

Skipton Business Finance has successfully funded a number of hauliers in the last 10 years with a range of flexible factoring or invoice discounting solutions designed to release cash tied up in unpaid invoices and improve a business’ cash flow.

Hauliers with such finance facilities have then been able to focus on other aspects of their business, such as expanding customer base and developing new clientele.

If you’re a haulier and would like to discuss how invoice finance can benefit your business, please get in touch with us today.