Guide: How to Boost Your Working Capital

No matter your experience in the trucking industry, the one thing that doesn’t change is the importance of working capital. You’ve likely heard the phrase “cash is king” before, and it’s true! Small or large, businesses require cash and liquid assets to be prepared for routine expenses or unexpected costs. In today’s climate especially, the everchanging costs of maintenance, fuel, and payroll can be challenging to manage in an effective way. 

Don’t fear! Our financial experts at My First Truck Financing by CapStar will walk you through making the most of your business and increasing your working capital today!  

What is Working Capital? 

Working capital simply means the amount of capital available after accounting for the cost of your daily operations. Every successful business, no matter the size, needs to ensure that they have the working capital available to cover any expenses, whether expected or unexpected. 

Read More > How to Become a Successful Semi-Truck Owner-Operator 

How Can I Increase My Business’ Working Capital? 

To increase working capital, you’ll need to lower your expenses as much as possible. On paper that sounds a lot easier than it is in practice. Luckily, we have experience with this and have a few paths you can take toward expanding your working capital! 

Manage Your Expenses 

The first step to lowering your expenses is to thoroughly understand your cash flow. Look through your expenses and research your costs to ensure you aren’t overpaying. Consider extending your payment windows to have more cash on hand.  

Deciding to outsource accounting, marketing, and other jobs may be a very cost-effective way to reduce your overhead costs. 

Maintenance Matters! 

One of the largest, unexpected costs is luckily one of the most preventable! Routine maintenance for your fleet helps eliminate surprise expenses showing up when you least expect it. 

Staying on top of any problems before they pop up will not only save you the headache but will surely save you money in the long run. Further, consider trading in any “problem trucks” that seem to commonly break down for a new vehicle. 

Ready for your new truck? Get in touch with My First Truck and get on the road! 

Optimizing Your Invoice Structure 

Trucking businesses that depend on a suboptimal invoice system may run into issues being paid on time. Not being able to get paid when you need it, and deserve it, cuts into your working capital. You can improve this by optimizing the speed and convenience of your invoice system. This ensures that invoices are sent out quickly and that terms are clearly defined.  

Reminding your clients with a follow-up call or email is also important to speed up the payment process. After all, the longer it takes to get paid, the less working capital you have in the meantime. 

What is Bill Factoring? 

If you are having an issue getting the money owed to you by clients, consider bill factoring with a truck finance specialist. Bill factoring allows you to obtain an advance on your invoices. Compared to taking a traditional loan, this process increases capital without going into debt. 

Contact My First Truck Financing at CapStar Corp to discuss your working capital needs today! 

Many industries utilize bill factoring to boost their working capital, such as trucking, healthcare, staffing, and manufacturing. 

Protect Your Working Capital with My First Truck Financing  

Now that you’ve taken all the steps to lower your costs, take the necessary steps to protect your working capital. Whether you are just starting out with damaged credit, or you have experience in the industry, partnering with a reputable truck financing company can protect you from unforeseen expenses. Opening a business line of credit ensures you will always have the cash on hand to continue operating.  

My First Truck brokers business with some of the strongest financial institutions in the world and strives to maintain an honest, straightforward experience for our clients. Let us help take the pain out of the application process!  

Don’t RUIN your credit with inquiries from dealers all around town. Simply submit an application online or give us a call to see what we can do to take your business to the next level! 

My FIRST Truck Financing Team: 

Jim at (813) 594-1120   

Chris at (813) 594-1115 (habla español) 

We’re real people with real knowledge. Let’s chat. 

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