If you listen to the news, you’ve probably heard an earful on the uncertainty of the economy. For every encouraging piece of news, we are told something discouraging. The American Trucking Association recently released figures that showed truck tonnage rose 3.9% in July from a year ago, but it also fell 1.3% from June ‘11. To help our trucking clients navigate these unexpected ups and downs successfully, we asked our transportation team for a few nuggets of advice:

1. Haul loads only for companies with sound credit histories. Knowing the current credit profile of the companies you do business with is the surest way to reduce your risk of not being paid or of being paid late. Don’t let your desire to pick up a load cloud warning signs that a customer is about to go out of business. Did they pay on time the last time you worked with them? Do you know other truckers who recently have had good experiences with them? Do you work with a finance company that has access to their credit worthiness?

2. Consider factoring or spot factoring. In a slow economy debtors tend to stretch out payments, tying up your working capital in old invoices. When business is good, having more access to quick cash can help you take on more jobs. In both situations, consider having a cash flow solution in place. A factoring company will provide you with quick cash for all of your receivables. A spot factor will work with you on invoices from as few as one slow-paying customer.  Consider both options carefully. The spot factor’s fee will probably be higher, but it may be a better choice if most of your customers pay quickly.

3. When looking for a funder, choose one that has free ancillary services that save you money. If you’re going to choose a factoring company, why not pick one that gives you discounts! Some factors are large enough to get discounts on products and services you already use. Look for factors that will provide fuel cards, discounts on gas or insurance, and even free credit checks.

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