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Factoring for Haulage companies

The UK road haulage industry carries over 80% of all domestic freight. UK haulage businesses are made up of a handful of large haulage business and mainly smaller owner managed business. Cashflow is of the utmost importance and invoice factoring can be used to great advantage to support cashflow and financial needs of hauliers

  • Haulage companies usually work on 60-90 days payment terms from customers. For this reason factoring or an invoice discounting facility can really benefit.
  • Factoring or invoice discounting can guarantee prompt payment for export invoices.
  • Factoring or invoice discounting take the pressure off directors when making weekly payments to drivers
  • Factoring or invoice discounting provides a maintained turnover for business in the haulage industry.
  • Haulage businesses customers are made of well established business and these are idea for factoring or invoice discounting.
  • Factoring or invoice discounting providing the much need finance for haulage businesses to stay on the road.
  • Factoring or invoice discounting provides cashflow for haulage expenses to be paid quickly.

The Haulier and Haulage Industry

In the UK the haulage business can be lucrative, but there is a lot of competition. There are over 50,000 businesses in the haulage industry operating many different types of trucks, vans and specialist heavy goods vehicles. The Haulage industry is relied upon to service the sheer amount of goods coming in through our ports and airports

The UK Haulage business is made up mostly of 2 types:

  1. Third party haulage businesses carrying other people’s goods
  2. Own account business running their own logistics and freight divisions.

Cashflow constraints of the haulage business:

  • The london congestion charge
  • Fuel costs account for about quarter of all operating costs
  • Road and bridge tolls
  • Fuel duty.
  • Fuel costs and taxes now amount to around 25% of the running costs of a haulage business.
  • Competition from Eastern Europe – lower fuel and labour costs – are almost entirely unregulated
  • UK regulation and compliance costs
  • Costs relating to the recruitment of staff
  • Staff costs – the average salary is around £22k
  • The demand for qualified drivers is pushing wage costs upwards.
  • Vehicle-related costs
  • HGVs cost
  • HGV insurance costs
  • Vehicle excise duty (VED)
  • Operators’ licence fees
  • Administrative costs
  • Exchange rate movements
  • Slow payment of sales invoices
  • Trailer hire
  • Payment on truck leases

At Factoringhelpline.co.uk we offer a range of services all designed to improve haulage businesses cashflow by releasing some of the cash tied up in the value of invoices.

Whether a sole trader, fast growing start-up or large corporate haulage company, we can help you find the right funding to suit your business. Call 0800 597 4757 or apply online today.

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