Factoring and Invoice Discounting Helpline

If you run a courier company you need to make sure you have the cash to keep the business going in the leaner times.  If you are starting small you might hope to start making significant profits after the third year of trading.

For a courier company a detailed business plan containing realistic financial forecasts is vital if a courier business is to choose the right types of finance from the range of options available. This will help determine how much funding the courier business is likely to require, what the money is needed for and when it will be required.

For a start-up courier business, running expenses must be factored in, in addition to any initial start-up costs. Sufficient capital should be available to cover projected expenses for at least six months, as customers may not pay up immediately. As the courier business is unlikely to produce any spare funds in the early stages, it is also important that the owner considers how much money the business will need in order to survive.

• The courier business operates in an industry where the company is not buying in stock or making big wage pay-outs.
• Courier riders will get their percentage of the client's bill on a weekly basis whereas courier companies will most likely invoice clients each month.
• For a courier business regularity of cashflow is important not the size of outgoings.
• It's important for a courier business to keep cashflow steady even when courier business isn't busy
• There are weekly and seasonal booms in the courier industry and this can affect cashflow.
• In the courier sector Fridays are busy as people send things before the weekend.
• Mondays and Tuesdays are generally slow in a courier business.
• July and August might be quiet times for a courier business.
• The run up to Christmas much busier for the courier sector

Get an invoice finance quote today by calling 0800 597 4757 or apply online to compare factoring companies