The pressure builds for most business when the festive season draws closer, for transport and haulage companies the lead up to Christmas is a particularly challenging time. The seasonal high sees demands rise for drivers, due to a 20% increase of online sales and shipping in December.
The transport and haulage industry employs over 2 million staff. It is worth £75 billion in the UK alone.
Fact: It is estimated that there is over 50,000 drivers short to fulfil the increased Christmas demands. This can mean a decrease in margins as drivers are paid at higher rates. In addition, the Christmas rush and high demand, can see payment cycles increase.
Why Do Businesses Have 90+ Days’ Prepayments in December?
- Annual leave - some late payment is down to staff annual leave, with credit control departments on annual leave, they are not available to make your payment.
- Christmas shut down - some of your customers will have a Christmas shut down and the entire business will cease operations.
- Financial year end - some businesses have their year-end in December which they may delay payments to hit budgets.
- Costs - fuel prices are increasing, vehicle repairs are essential yet costly, and staff wages can rocket, especially if your team is working overtime.
Your Cashflow Vs. Your Demands
At Calverton we can support you to plan ahead as we specialise in Invoice Finance for the transport industry. We provide a variety of products that can support your seasonal highs and low, in particular with our ICON facility – In Case Of Need.
Bridging the gap between your cashflow and your demands. We can release up to 90% of your invoice within 24 hours, allowing you to pay for the additional costs such as fuel, repairs and stock.
Here are 5 reasons why Invoice Finance is more effective than an overdraft. Supporting you through this spike in sales and collapse in payments.
We have been supporting SME transport businesses for over 20 years and have the highest retention rates in the business. Now operating from 2 offices, Milton Keynes and Gatwick, employing over 50 members of staff, we have partnered with thousands of clients over the years.
Recently celebrating our 1st birthday for our Gatwick office we aim to provide a local and personalised service, whereby every client is treated like family. With every employee building a fantastic relationship with our clients and their customers to ensure we provide the best possible service, we truly want to help our clients to Build, Grow & Thrive.
For more information about how we can support your business through Christmas or for a long term solution, please call 01908 268888.