The haulage industry has been using factoring extensively for a long period of time now due mainly to its dependence on available cash flow to pay wages and operating costs of vehicles.

The cash flow crunch happens because customers are businesses who require to be invoiced, and the work is invoiced but the invoice may not be paid for a month at the least. During the period that invoices remain unpaid, staff wages and petrol must be funded - this short fall in cash can be met with a bank overdraft initially but when the company grows and the cash short fall gets larger the company can potentially grow itself out of business.

By using factoring services haulage companies are able to keep their cash flow healthy and help secure new contracts allowing them to grow.

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