According to Transport and Logistics Holland, trust within the transport industry is at its highest point in 18 years. Revenue in the transport industry is growing, prices are increasing, but so are costs, mostly because of higher fuel and staff costs. The question that many entrepreneurs in the transport industry ask themselves is whether or not they have sufficient working capital to finance the growth. Looking at increasing staff costs and the long payment terms they offer their debtors, the answer is: probably not. How do you solve this if you want your company to grow?
Growing transport industry
In the last quarter of 2017, the transport industry reached the highest level ever. According to the CBS revenue was 4.4% higher than a year before. This high revenue within the transport industry is thanks to economic growth. There are more jobs which means more assignments. If you work in the transport industry this must sound like music to your ears, because more assignments should lead to more profit.
There is a catch
Obviously it’s a good sign that revenue is increasing and there are more jobs, but I can hear you thinking: ‘There’s probably a catch”. And there is. A shortage of staff has developed within the industry. The next scenario should look familiar: you want to take on extra assignments, but you don’t have enough personnel. Just when you wanted to grow. After all, the increase in the scale of goods transported over roads and water is continuing (source: Rabobank) and you want to continue to develop along with that.
Breakthrough in the vicious cycle
A shortage of staff usually means that personnel costs rapidly grow in the market. That is also true within the transport industry. Because your debtors want to keep their long(er) terms of payment and you have to pay your staff’s salaries, the possibility of a liquidity shortage arises, which limits the growth you would like to see. Staff costs increase, so you can hire less personnel, and as a result, you don’t grow as much as you would like to.
It seems like an impenetrable vicious cycle, but Togather breaks it for entrepreneurs in the transport industry, as well as in other sectors. But how? With factoring 2.0, where your invoices are transferred to Togather, making sure that your suppliers and staff get paid, without it influencing your liquidity position and strength.
The solution: factoring 2.0
If you do what you are best at with your transport company, we’ll do what we are best at. We buy your invoices and consequently immediately create more working capital for your transport company, so you have more liquidity to hire more personnel and take on more assignments.
Providing working capital
Through taking over your invoices and providing working capital, Togather is reacting to the current demand for working capital that entrepreneurs working in different industries have, including the Transport and Logistics branch. By using Togather’s factoring 2.0 programme you can be sure of your invoices being paid. You don’t have to worry about uncertain cash flow. From now on you can focus on what you want to be focusing on: the growth of your company. Leave the financial fuss to us and focus on the future!
Curious about what we can mean to you? Click here for a calculation example and see exactly what you will receive and what it will cost, using your own figures. Or get to know us straight away by leaving your number.