The costs for owner-operators often seem to never stop from adding up when you think of planned and unplanned maintenance, fuel, insurance meals and so on, and this is just to list a few. The greatest challenge for owners-operators is the cash flow. Being smart about your cash flow is the best option when you are running your own trucking company. Check out this short article about the tree cash flow tips to help you stay ahead of any cash flow crisis.
1. Ensure your customers are paying you for the loads you haul
Without predictable money coming in, there is no way you can manage your cash flow. With this, there are two things to consider, if and when your clients are going to pay.
Unfortunately, I did write IF your clients pay. Without conducting credit checks on your potential clients and brokers, you don’t know what their past payment history is and if they pay their bills on time or at all. The easiest way to ensure you are only hauling loads for clients and brokers who will pay you promptly is to conduct credit checks. The good news for owner-operators is that there are financial partners, such as some trucking factoring companies that offer free credit checks to their factoring clients, helping them to save money and ensure they get paid.
When your clients pay directly impacts your cash flow. It is not unusual for it to take 30 to 60 days, or more, for freight bills to be paid, meanwhile your bills are piling up. One option to eliminate the uncertainty of payment terms is to partner with a freight bill factoring company. Freight bill factoring gets you immediate funds for your freight bills, allowing you to have the funds you need to pay your bills when you need it.
2. Accurately track expenses and get the help you need when you need it
Accurately tracking your income and expenses is the only way to know what your cash flow situation truly is, and this can be difficult when you spend most of your time on the road. Depending on your level of comfort and the amount of time… Read full article here
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