Businesses in the transport and logistics sector face many challenges trying to manage and maintain consistent cashflow having to juggle fluctuating fuel prices, tight margins, reducing numbers of skilled drivers, and ever-increasing regulation and safety obligations.
Not being in control of your business’ finance can be a frightening thought. Working on credit, trying to meet payroll and tax commitments plus trying to invest back into the business to grow, creates an uncomfortable situation.
Over the past two or more years the biggest challenge for small to medium businesses is getting enough cash to effectively run the business. It’s not uncommon for a profitable business to have cashflow problems, and this is especially true when new growth and sales opportunities come up.
Customer invoice financing and bank overdrafts both provide cash to help businesses fund their day to day operating expenses, however there are some major differences. Here is an explanation on how they vary to help you decide what is best for you.