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How can Factoring Benefit your Freight Company?

A guide to Haulage Finance

Haulage Facts

number of UK registered lorries

1.68 billion tonnes moved by road annually

8% of the total UK workforce areemployed in logistics

2.2 million people work in the logistics sector

840,000 additional workers needed in the sector in 2017

Online spending is predicted to grow a

44.9% by 2020, which equates to massive

£62.7bn

53%

220,000 employedby uk road haulage

11% ofworkforce are women

34,000haulage companies in UK

13% selfemployed

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10

20

30

40

50

60

70

All goods moved in the UK by road

1980 2017

68%

Tel: 0330 134 2826simplyfactoringbrokers.co.uk/haulagefactoring/

Simply Factoring Brokers Ltd , The Stables, The Estates Office 25-26 Gold Tops, Newport. NP20 4PG

How Does Factoring Benefit my Haulage Company?

A factoring facility can access the equity tied up in unpaid invoices and release working capital to:

• Pay staff on time • Pay for commercial properties• Refuel vehicles • Pay for road charges and tolls• Maintain vehicles • Pay for vehicle insurance cover• Keep up with operating costs • Invest in new vehicles

What is Haulage Factoring?

Haulage Factoring can give your business the working capital it needs to develop and grow. The haulage industry faces a unique set of economic pressures. The side-effects of erratic service demand, fluctuating fuel costs and temperamental exchange rates could all cause your haulage business to falter.

The cashflow released through factoring helps even out periods of financial hardship and ensures your fleet keeps on the move.

Having the extra security that the infusion of cashflow brings allows you to take a long-term, strategic view of your company’s future. This could include diversifying your fleet or expanding your customer base.

“We make your business, Our business.”

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What happens in the Invoicing Process?

• Set-up the facility with the lender• Submit an invoice• The invoice is verified• The funder releases up to 90% of the invoices value in 24 hours• Upon the settlement of the invoice you receive the remaining 10% minus fees

This means that you have access to your money without having to wait for your customer to pay up once the job is complete.

How Does Haulage Factoring Work?

Factoring alleviates the pressures of a volatile industry allowing you to access the cashflow tied up in your outstanding invoices.Is your haulage business is reliant on companies that have unfavourable timescales in their payment terms? Factoring can help counteract the effects it has on your business. A factoring facility allows your company to sell its outstanding invoices either selectively or wholesale.

A large percentage of the cash that is owed to your business is available to in a 24 hour period.


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To complement the factoring facility, a fuel card agreement is available that helps you effectively manage the costs of paying for fuel.

• Budgeting for essential costs and spread payments throughout the year

• Reduce the debilitating effects large expenditure has on your company

• Increased security and control - as a card is often linked to a specific employee or vehicle

• Collate and analyse data on fuel usage.



What Other Bolt-on Features are Available?

There is an option to outsource credit control and ledger management. This service offers complete confidentiality which will to help you maintain client relationships.

Outsourcing this function allows you to centre your activity on developing new areas of the business.

As an add-on, you can take out bad debtor protection cover which safeguards your company from the effects of a customer who is unable to pay an invoice through insolvency or bankruptcy.

FUEL CARD

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MR JOHN SMITH


What is a Fuel Card Agreement?

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What are the Advantages of Factoring?

Our funders include some of the UK’s leading names in Factoring services and will provide you with a credit facility to enable you to keep your business moving.

The factoring facility is scalable and grows with your business - you are only limited by the strength of your sales.

As the fees are a percentage of your invoices value, if there are periods where your company may experience a quiet month - you’ll pay less in fees as a consequence.

There are also no limits to the amount of invoices you can factor.

How can Simply Factoring Brokers help?

The haulage industry accounts for nearly a quarter of all the companies that use factoring in the UK. Factoring provides a number of solutions to industry specific issues.

Simply Factoring Brokers work with a range of specialist Funders that specifically deal with the freight industry.

Our funders are industry experts who understand thedemands of the industry and have the experience to identify the support your company needs to enable it to reach its potential.

We are an independent brokerage and will strive to find you the best deal for your business.


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how can factoring - wordpress.com · how can simply factoring brokers help? the haulage industry...

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