Cash flow gains

SPONSORED CONTENT: It’s no secret that transport operators are burdened with everyday business expenses and fixed costs more than other businesses. ScotPac’s flexible invoice or asset finance solutions can help operators generate immediate working capital, allowing them to focus on their business needs and growth opportunities.

 

Freight transport operators, particularly those in the road transport sector, have a large number of commitments that exert pressure on their cash flow. Factors such as vehicle lease payments or purchase costs, fuel payments, staff and driver wages, rent or premises costs, and regular servicing and repairs of vehicles – all contribute to relatively higher fixed costs compared to other industries.

It’s a tough market, not just owing to the ongoing pandemic. Transport operators face varying levels of daily challenges – uncertainty of long payment terms and debt turnaround, fluctuating cash flow that can cause stress in managing day-to-day finance and fixed costs, and in some cases, upfront capital expenditure. 

For smaller operators the road can be more challenging as the risk of debtor failure can be catastrophic. In such cases, invoice finance can assist. It can:

  • provide a line of credit by using unpaid customer invoices 
  • smooth out cash flow by advancing up to 95 per cent of the invoice value
  • outsource sending of statements and collection calls to save time
  • provide peace of mind against bad debt protection.

This is where ScotPac comes in. Established in 1988, ScotPac is Australia and New Zealand’s largest non-bank lender for SME’s and leading specialist provider of working capital solutions with invoice finance, asset finance and trade finance facilities. With leading expertise in the transport sector, ScotPac aims to improve cash flow to generate funds that all transport operators rely on, as well being able to assist with the purchase of vehicles to expand the fleet. Its finance specialists can help find a funding solution that’s the right fit for every business.

Invoice Finance

Invoice finance allows transport businesses to draw down the value of invoices they are owed. This provides an up-front cash injection rather than the typical wait for the invoices to be paid. Once set up, businesses simply invoice their customers and share the invoice with ScotPac at the same time. Up to 95 per cent of the value of approved invoices can become available within 24 hours. The remaining 5 per cent becomes available when the invoice is paid in full.

It’s an alternative funding option that can sit alongside your other business borrowings and keeps your personal assets such as the family home out of the picture. ScotPac offers flexible facilities with fixed term or no minimum term contracts.

Asset Finance

ScotPac’s Asset Finance helps fund equipment and vehicles to help operators of all sizes expand their business. With flexible terms (of up to five years) ScotPac can help fund assets by:

  • funding up to 100 per cent of the purchase costs of an asset with no capital outlay
  • giving more choice to purchase new or pre-owned assets locally or from overseas with no upfront payment
  • allowing operators to access capital they have tied up within existing assets
  • offering quick approvals.

For further details, visit www.scotpac.com.au/transport.

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