How To Increase Your Freight Receiving Volume And Cash Flow

The freight factoring is a cash business, with high operating costs and low margins. Businesses that deal in raw materials, contract manufacturers, distributors, and other suppliers all rely on the same freight factoring service and a handful of companies to move their goods. Whether you’re a small distributor or wholesaler with just a couple of locations or an e-commerce retailer with warehouses across the country, the same principles apply. If you want more volume coming through your business and increasing cash flow too, read on for some tips.

Don’t Receive Freight Where You Work

Many freight factoring companies receive the majority of their freight volume at the location where they do business. You can’t expect to receive high volumes of freight simply because you’re nearby. You need to put in place procedures and controls to ensure you’re receiving freight in a timely manner. Make sure that you’re tracking your inventory so that you know exactly how much freight you’ve taken in and can offer a clear explanation to customers when they call. Having a clear understanding of where you’re getting the most and least volume will also help you to budget for more stock, hire more staff, and invest in improvements to reduce your operating costs.


 

Track Your Inventory

A good way to increase your freight volume is to track your inventory. This will help you to understand the availability of your products and know exactly how much you’re taking in. You can use a software program like ERP or E-commerce platforms to manage your inventory. Tracking your inventory will help you to understand the availability of your products and will ensure that you’re not taking on too much. If you’re just starting out, consider hiring a full-time stock manager who can help you manage your inventory. A stock manager will help you to keep track of your products, ensure that you’ve got enough stock to fulfill orders, and manage your storage costs. Some warehouses will also charge storage fees on top of the price of the product itself.

Take Credit Cards Only When It Makes Sense

Credit card authorizations are often the fastest way to receive freight, especially if the carrier is an e-commerce company that’s generating high sales volumes. But when it comes to cash flow, you don’t want to have to worry about paying back that money. This is why it’s important to only accept credit card payments on a freight-based business when it makes sense. You want to be able to pay cash and receive the goods as quickly as possible.

Wrapping Up

Freight is a tough business. The freight industry is full of risks, and you’ll need to be willing to do a lot of hard work to get a good deal. If you’re looking to get more freight volume and cash flow, you’re going to need to spend time improving your company’s processes. You’re going to have to spend time tracking inventory and managing your inventory, communicating with customers, and working with your carriers to get rates and get paid as quickly as possible. There are a lot of risks involved with the freight business, but there are also a lot of rewards. If you’re looking to get more volume, you’ll need to be willing to spend time improving your company’s processes and investing in risk management.

Popular posts from this blog

How Freight Factoring Companies Help Trucking Businesses Grow

Image
Trucking is an integral part of the global economy, and the demand for freight transportation is ever-increasing. However, trucking businesses face significant financial challenges, including long payment cycles, high overhead costs, and limited access to credit. Freight factoring is a financial solution that has gained popularity in recent years to help trucking companies overcome these challenges and grow their businesses. In this blog, we will explore how freight factoring companies help trucking businesses grow. What is Freight Factoring? Freight factoring is a type of financing in which a third-party company (known as a factor) purchases a trucking company's outstanding invoices at a discounted rate. This allows the trucking company to receive immediate cash for their unpaid invoices, rather than waiting for customers to pay on their terms, which can take up to 90 days or more. The factoring company then collects the outstanding payments from the customers and pays the trucki
Read more

Invoice Factoring Vs. Bank Loan: Which Is Better For Your Trucking Business?

Image
  Careful money management is necessary to run a profitable trucking company, especially when it comes to cash flow. Expenses for gasoline, maintenance, and slow-paying customers are common problems for trucking companies. Finding the ideal financial arrangement is essential in these circumstances. Bank loans and freight factoring are two popular financing solutions for trucking companies. In this blog, we'll examine the main distinctions between these financing options to assist you in deciding which is more appropriate for the requirements of your trucking company and freight factoring for small fleets. Understanding Freight Factoring 1. What Is Freight Factoring? Freight factoring, often known as "invoice factoring," is a financial service created to help trucking firms with their cash flow. It entails offering a "factor," or factoring company, a discounted price for your unpaid invoices. You receive an instant cash advance from the factor in exchange, which
Read more

Freight Factoring For New Trucking Businesses: Tips And Best Practices

Image
Starting a new trucking business can be an exciting and challenging venture. One of the biggest challenges for new trucking companies is managing cash flow. Freight factoring is one option for trucking companies to manage their cash flow and ensure they have the necessary funds to keep their business running smoothly. Freight factoring involves selling your unpaid invoices to a third-party company, known as a freight factoring company, at a discounted rate. The factoring company pays you a percentage of the invoice amount upfront, usually around 90%, and then collects the full amount from your customer. The remaining 10% is paid to you, minus a fee charged by the factoring company. Here are some tips and best practices for new trucking businesses when it comes to freight factoring: Research and Compare Freight Factoring Companies There are many freight factoring companies out there, so it's important to research and compare different companies before choosing one to work with. Co
Read more