The success of a business depends on its ability to maintain a positive cash flow and generate profitability. However, these two aspects are not always in sync, and a company may face difficulties when cash flow is poor, even if profitability is high. Poor cash flow can lead to problems such as difficulty paying bills, falling behind on loan payments, and losing suppliers and vendors.
Maintaining healthy cash flow is crucial for any small business manager or operator. Without cash flow, a company can find itself in a precarious financial position, unable to finance its daily operations or invest in growth opportunities. One effective way to do this is by opening an accounts receivable (AR) line of credit, which allows a company to access funds that are owed to them but not yet collected.
Accounts receivable financing is a flexible way to access cash that can be used for various business needs, including paying bills, financing growth opportunities, and handling unexpected expenses. By opening an AR line of credit, a company can improve its cash flow and maintain financial flexibility without taking on the burden of a traditional loan.
One significant benefit of an AR line of credit is its increased flexibility. Unlike traditional loans, which require specific payments at specific times, an AR line of credit allows a company to pay more when business is booming and slow down payments when needed. This makes it an ideal financing option for businesses with seasonal fluctuations or irregular revenue streams.
Another advantage of an AR line of credit is that it can pay for essential or emergency expenses without worrying about repayment terms. When unexpected expenses arise, businesses often have to take out loans or credit cards, which can be costly and add to financial stress. However, with an AR line of credit, companies have a safety net they can tap into with peace of mind, knowing they can repay the funds as revenue allows.
Opening an AR line of credit with FreightCenter is an intelligent choice for businesses that need reliable, affordable shipping solutions. As an award-winning logistics company, FreightCenter offers competitive pricing and excellent customer service to ensure customers receive the best possible service. By opening an AR line of credit with FreightCenter, businesses can improve their cash flow, maintain financial flexibility, and position themselves for growth.
Improved Cash Flow with Accounts Receivable
The four seasons of freight shipping refer to the cyclical nature of the shipping industry throughout the year. For example, the holiday season in November and December is typically a busy time for shipping companies due to increased demand for consumer goods. Similarly, the summer can be active for industries like construction and agriculture, requiring seasonal supplies.
In the logistics world, these ups and downs can make it difficult for businesses to maintain a steady cash flow. However, with an accounts receivable line of credit, companies can improve their cash flow and ensure they have the resources to cover their bills and expenses throughout the year.
When you have an AR line of credit, you can access funds owed to your business from outstanding invoices. This allows you to collect payment on your invoices faster and avoid the delays that can come with waiting for customers to pay. With improved cash flow, you can stay on top of your bills and expenses, avoid costly loans or credit card debt, and maintain a healthy financial position for your business.
FreightCenter offers an AR line of credit that can help businesses improve their cash flow and weather the ups and downs of the shipping industry throughout the year. By opening a credit line with FreightCenter, companies can access the funds they need to keep their operations running smoothly and maintain financial stability.
Increased Flexibility with Accounts Receivable
One of the critical benefits of the accounts receivable (AR) line of credit is its flexibility in terms of repayment. Unlike traditional loans, which have specific requirements for repayment at set intervals, an AR line of credit allows business owners to borrow and repay the money on an as-needed basis. This can be especially helpful for small businesses with seasonal revenue or unexpected expense fluctuations.
With an AR line of credit, you can allocate financial resources to the areas of the business that need it most. For example, if you have a large order to fulfill and need more inventory, you can draw from your AR line of credit to finance the purchase. Alternatively, if the business is slow and you need to conserve cash, you can slow down your payments on the AR line of credit to match the performance of your revenue numbers. This can help you avoid the burden of fixed loan payments that can become difficult to manage during lean times.
Another advantage of AR lines of credit is that they are typically easier to obtain than traditional loans. This is because the credit line is secured by your business’s accounts receivable, making it less risky for lenders. Additionally, since the line of credit is revolving, you can draw from it multiple times as long as you make timely payments.
By opening an AR line of credit with FreightCenter, you can take advantage of these flexibility benefits while accessing a range of logistics solutions to help you manage your shipping needs. This can help you maintain a healthy cash flow all year round and ensure you have the financial resources needed to grow and expand your business.
Pay for Important/Emergency Expenses
Expanding further upon the improved cash flow and increased flexibility benefits of an AR line of credit, these two things significantly benefit your company. You can pay any emergency expenses without worrying about how to repay them like a traditional loan.
If you need money for something quick or urgent, you can go right into your line of credit without digging a larger financial hole. You can then focus on other parts of your business that you need to tend to with your full attention. And that is the crucial function of an AR line of credit; you have a backup safety net you can modestly indulge in with peace of mind to care for costly upfront needs.
Why Choose To Open AN AR Account with FreightCenter?
There are several reasons why opening an accounts receivable (AR) account with FreightCenter is a wise decision for any small business owner or operator.
Firstly, FreightCenter is a reliable and reputable company with years of experience in shipping and logistics. They have established relationships with a vast network of carriers, which means they can offer their customers competitive rates and reliable service.
Secondly, opening an AR account with FreightCenter provides you with the flexibility to manage your cash flow and keep your business running smoothly. With an AR line of credit, you can use the financial resources needed to pay bills and expenses without worrying about falling behind or taking out loans or credit cards that could put you in deeper financial trouble.
Thirdly, FreightCenter’s online platform is user-friendly and easy to use. You can easily access your account, track shipments, and manage invoices and payments all in one place. This makes managing your logistics needs and keeping track of your finances much simpler and more streamlined.
Finally, FreightCenter offers excellent customer service and support. Their team of logistics experts is available to answer any questions you may have and provide guidance on shipping and logistics solutions that will meet your specific needs. They also offer personalized service to ensure you receive the support you need to keep your business running smoothly.
Opening an AR account with FreightCenter is wise for any small business owner or operator looking to manage their cash flow and logistics needs more effectively.
AR Accounts Are Smart and Affordable
An accounts receivable (AR) line of credit from FreightCenter can be a smart financial move for your business, providing a cost-effective way to improve scalability and maintain a healthy cash flow. One of the most significant advantages of AR lines of credit is their low-interest rates compared to traditional loans and credit cards. By building a solid credit history through on-time payments, you can keep those rates low, saving you money in the long run.
Moreover, AR lines of credit provide a flexible payment option to help your business weather challenging times. When you have bills and expenses, you don’t want to fall behind on them or take out loans or credit cards that can add to your financial burden. With an AR line of credit, you can put financial resources into the areas of your business that need them the most, paying vendors or other expenses according to the revenue numbers. This flexibility allows you to keep up with payments during slow times and pay more back when business is booming. Overall, opening an AR account with FreightCenter can provide a cost-effective way to improve your cash flow and maintain financial solvency in the long run.
Open an AR Account with FreightCenter Today
FreightCenter is making it even easier to build business credit and improve cash flow with a FreightCenter Accounts Receivable line of credit. FreightCenter reports to all major commercial credit bureaus, which helps you establish a positive business credit history. Position your company for growth today with a FreightCenter AR line of credit.
It’s easy! If you are an existing FreightCenter customer, log into your MyFreightCenter account. If you are new to FreightCenter, create your account here. On your dashboard/account page, complete the online application form. Once you submit your application, you will receive an email in 24-48 hours with the status of your application. No personal credit checks, personal guarantees, annual fees, or interest when paid in full by the due date.
Apply today online. If you have any questions about your FreightCenter account, shout at 800.716.7068.
