Date Added: Jan 2010
As a transport company owner you begin to feel like you have to juggle between hosts of issues, with considerable time taken up to look after the finance needs of the organization. Financing the growth of any transport company is a major challenge. When a transport company is new it is difficult to get finance from banks, as the credit ratings are not well developed. What is required for growth is more and more working capital. And if credit sales have created a situation of a low cash flow level then it becomes harder to meet daily cash requirements. In such a situation, accounts receivable financing is a very good financing option for the transport industry.