3 Ways To Get Through A Cash Crisis
In the trucking business, there are few risks more dangerous than a cash crunch. All it takes is a few customers to be late on their bills, several repairs or other unexpected costs, and before you know it, you're tight on cash. As you likely know, that's bad news for a trucking company. You need cash on hand to pay for fuel, drivers, maintenance, and a host of other expenses. If you can't pay those costs, your business could be on the brink. Fortunately, there are a few things you can do to resolve the situation. Here are three creative ways to get through your next cash crunch:
Have a flash sale. Retailers, restaurants, and plenty of other businesses use this tactic all the time to raise cash. If it works for them, it can work for you. Send out an email blast or call your customers and prospects and let them know that you're offering trucking services at a highly discounted rate. Put a deadline on the offer to give them some urgency. Also, stipulate that the entire balance must be paid upfront. This tactic may not be the most profitable, but it will help you raise cash so you can live to fight another day.
Ask your vendors for help. You may have a cash crisis looming, but it's possible that crisis could go away if you could avoid some upcoming bills. Of course, you probably need a good relationship with your vendors, so you don't want to stiff them. Instead, reach out to them and let them know what's going on. Ask if they could let you push back your next payment or even skip a payment and then repay it over the next three or six months.
If your vendors value your business, they'll likely be willing to work with you. Remember, they're business owners, too. They understand that these things happen. Talk to your landlord, fuel supplier, maintenance company, and more to see if you can work out an arrangement.
Work with a factoring company. Factoring can be a great way to get money for your unpaid invoices. You simply turn the invoices over to the factoring company, who in turn advances you a substantial portion of the invoice balance. The factoring company then collects payment from your customer. When they collect, they keep the amount they already advanced plus a small fee for their services. The rest is advanced to you. Factoring allows you to get cash quickly on your outstanding receivable.
For more information, contact a factoring company that works with trucking businesses. They can consult with you and help you find a solution to your cash crisis. Contact a business, such as Factor Loads, for more information.