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• 20 Apr

  Transportation Factoring Companies For Haulage And Couriers

  Transportation factoring companies are important supporters of the transportation services and distribution services industries. They provided these important sectors with factoring services to improve cash flow and reduce administration.

  Many companies within those sectors use this form of funding, to unlock cash to improve their cash flow. These can include haulage, distribution and courier services companies.

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  Transportation Factoring Companies & Courier Company Finance

  Transport factoring companies are involved with a significant proportion of the businesses within this sector as many use invoice financing services.

  Distribution and courier services companies have accounted for a large proportion of client numbers within the receivables funding as cash flow funding is often helpful when faced with rising fuel costs and the need to pay for vehicles and staff costs.

  There are some case studies on our site for the transport factoring sector, one where we have found a large, 50% annual factoring cost saving for one haulage company that was already using factoring.

  We were also able to find courier company finance in the form of a selective invoice financing arrangement for a courier services company that did not require the Directors of the company to give any personal guarantees to the finance company.

  Financing Against Invoices To National Courier Marketplaces And UK Courier Networks

  A common issue within the transportation and courier sector is getting sufficient financing against invoices to national courier marketplaces and UK courier networks.

  Transport Network Platforms

  These nationwide courier and transport networks are platforms designed to streamline the logistics process by connecting courier businesses with companies that need to transport goods. They operate as online marketplaces where couriers and transport companies with available capacity can find delivery jobs posted by businesses looking to ship freight, parcels or packages. This helps reduce the number of empty return journeys and increases efficiency for the transport companies.

  Funding Invoices To Transport Networks

  Some invoice finance companies will not fund against invoices to transport or courier networks, and some impose funding restrictions or require other additional security measures. We have compiled a list of flexible invoice finance providers that will finance invoices to national courier marketplaces and UK courier networks, including those that can offer relaxed concentration limits against these networks.

  Other Financing Options For Transport Companies

  Whilst transport factoring (funding and credit control) is one option for hauliers, there are also funding-only options known as invoice finance or invoice discounting - if you want to retain the credit control function yourself.

  Transport Factoring Companies In The UK

  In some countries, such as the USA, there are specialist transportation factoring companies that deal with only that sector. However, in the UK, most factoring companies will support the full range of transport services companies including haulage, freight forwarders, couriers and trucking companies.

  Speak to us on 03330 113622 and we will gladly connect you with funders that specialise in the transport industry and can help.

  Courier services are often included within the same sector and are also highly suited to invoice financing.

  Benefits Of Transport Factoring Services

  The key benefit of a transport factoring facility is the release of cash against unpaid customer invoices, and this cash can be used to boost the cash flow of your business, as you don’t have to wait around to be paid by customers.

  The credit-control service, that is included within the facility, also means that you do not need to undertake this function in-house, provided you choose a supplier that delivers a comprehensive credit-control service.

  Read an example of how we found a new startup haulage business recourse factoring.

  Paying Fuel Costs

  In the case of transport companies, fuel can often be a high cost, as can leasing payments in respect of vehicles. The proceeds from receivables financing can be used for paying fuel costs in addition to other costs, such as labour and monthly overheads.

  Vehicle & HGV Leasing

  In addition to funding against unpaid sales invoices, our finance partners are able to help you arrange various forms of purchase finance, such as leasing, with respect to vehicles. This can include cars, vans, lorries, and HGVs (heavy goods vehicles). This kind of finance can be included as part of a funding package for a transport company (or on a standalone basis), either against new vehicles or existing stock.

  More Information

  For more information please speak to Sean on 03330 113622 and he will happily put you in touch with suitable transportation factoring companies.

  Case Study - Factoring Ambulance Services For Patient Transport.

  By Glenn Blackman