Haulage Industry debt concerns

Haulage Industry debt concerns

The UK’s haulage industry is facing some major concerns at the moment with many fearful that the situation may worsen post Brexit. The productivity and competitiveness of the UK economy is dependent upon having an efficient road haulage sector and road infrastructure that works for all users. Everything we eat, drink and wear depends on […]

The UK’s haulage industry is facing some major concerns at the moment with many fearful that the situation may worsen post Brexit. The productivity and competitiveness of the UK economy is dependent upon having an efficient road haulage sector and road infrastructure that works for all users.

Everything we eat, drink and wear depends on road haulage services, 98% of all food & agricultural products, consumer products and machinery in Great Britain are moved by road freight. However, road transport is a highly competitive and low-margin business and is a difficult area to operate in, particularly when it comes to maintaining healthy levels of cash flow and working capital. The operational costs associated with running a transport business tend to be high, and this is often made worse by the uncertain and frequently rising cost of fuel.

The industry is also struggling with a lack of HGV drivers and is reportedly in need of around another 75,000 drivers to get up to full capacity. Concerns over Brexit mean that there is a real worry that EU-native drivers may leave the UK and firms are struggling to attract new, young talent into the industry. Road congestion, congestion charges, a shortage of vehicles, drivers and rail availability and chronic congestion at UK ports are putting the industry under real pressure. It is a difficult time for hauliers.

There are also problems associated with customer payments. This is already a low margin business and payment terms in the industry tend to be lengthy, with 30-90 as standard. This pressure on cash flow can be the difference between remaining strong operationally and floundering. Partnering with an agency that has a proven tack record and specialises in credit control and management services can be that difference. Instead of using valuable time chasing invoices and wondering when you may be paid, Daniels Silverman can offer a white label service to work as part of your business. Our highly trained staff know how important it is for you to maintain good relationships with your clients and getting your money should never cost you a customer. We act on your behalf to give friendly reminders of outstanding invoices and your customers have an open line of communication to resolve any queries. We have a high rate of success to ensure you are paid on time and we charge a flat monthly fee, as opposed to charging commission, allowing you to be in complete control of your finances depending on the number of invoices to be collected. We also provide a same day service, so you know exactly where your accounts are up to. As part of the service we offer we also perform regular credit checks for new customers as well as those seeking a credit limit increase.

These are difficult times for the haulage industry, with further uncertainty ahead after Brexit and the impact and delays at ports this may cause. Now more than ever it is time to take control and ensure that cash flow within the business stays healthy and using a partner like Daniels Silverman will allow you to gain that control as well as freeing up time to allow you to work on developing your business.

If you would like more information about how Daniels Silverman could help to support your business please get in touch today, we’d be delighted to hear from you.