It’s summer. Weddings, trips, reunions and big events cover your calendar. Busy schedules mean stronger revenues but it can also mean sudden expenses. Whether paying for the unexpected maintenance issue, the urgent office technology need or considering the mobile wash to increase efficiency, developing financial options now could lead you to a stronger bottom line when schedules are less hectic. Here are a few tips:
Just because you have the cash now, don’t get crazy.
With stronger cash flows in summer months, you might be tempted to just pay cash for the urgent equipment need. But be careful, preserving that cash for less active months by financing your equipment could give you more predictable cash flows and a financial cushion in the slower seasons–when you need it most.
Expenses now…revenue later.
Often we see ground transportation businesses adding staff, units and more revenue producing equipment to meet demand in the summer months. That growth has terrific long term implications, but in the short term can put you in a cash crunch. The steady cash flows afforded by well managed equipment financing or working capital lending can help you meet growing needs without struggling in the short term.
Quick money is not always the best money. If you are getting a loan for equipment or working capital, be careful. Some lending options can put big money in your account quickly, but the payment structure is really harmful long term. Make sure you know what you are agreeing to and find partners that can help you quickly AND fairly.
Work with people that know your business.
Let’s face it, very few lenders understand the ground transportation business. So, find a partner with deep experience in the seasonality, maintenance and other issues that are very unique to your industry. A partner that has deep knowledge of the equipment you count on and strong understanding of the cash flow implications you face.
At Access, no lender understands the ground transportation business like we do. For more than 25 years, we have helped businesses like yours succeed in all situations—especially through the craziness of summer months. At Access, we listen and we lend. Let’s talk!