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Top Tips To Grow Your Transportation Company

Growth-focused transportation companies often face challenges when ti comes to securing the working capital needed to expand. Traditional lending channels have prohibitive requirements which are tough to meet. Additionally, most businesses would rather avoid placing additional debt on the balance sheets or risk compromising their credit ratings. Fortunately, there are debt-free financing solutions available to help grow your transportation company and sidestep the red tape associated with traditional bank loans.

Top Tips To Grow Your Transportation Company

Purchase Order Financing

Purchase order financing can help to grow a small transportation company by allowing it to carve out a larger market share. Purchase order financing is an advance in working capital, which is used to cover the expenses of filling large customer orders. Once the orders are filled, the purchase order financing professionals take over, and issue the invoice to the end customer. Once the customer pays, the financing is deducted and the remainder is given to your transportation company as revenue. By taking on more large orders, your transportation company will be able to accumulate growth capital to expand operations. Best of all, purchase order financing does not place any debt on the balance sheets.

Accounts Receivable Financing

Accounts receivable financing – or AR financing – is a way for your transportation company to monetize open customer invoices for immediate working capital. Instead of waiting the usual 30, 60, 90, or 120 days before customers are required to remit payment, AR financing allows transportation companies to sell their invoices. Most invoices can be converted to cash within 24 hours. AR financing is not a loan, but rather a sale on receivables (hence the name). There are no credit checks run on your business, and there is no debt. AR financing lets you streamline accounting by giving you one source of revenue, rather than tracking invoices across multiple customer accounts, and accrue working capital for new equipment, larger facilities, and any other growth-oriented projects.

Learn More Today

If you would like to learn more about purchase order or AR financing, contact Eagle Business Credit today. We work directly with growth-focused transportation companies to provide financing solutions without compromising credit ratings or placing debt on the balance sheets. Our team will work with you directly to understand your business goals to provide the best strategy for your continued growth and long-term success.