Despite being a crucial part of life as we know it, the transportation industry faces challenges. One of the significant challenges can be getting paid in a timely fashion. With all of the demands of running a transportation company requiring full attention, it becomes too easy to let late payments slide.
Those late payments can then slide into nonpayment, and it is a hardship for transportation companies to find the time necessary to adequately address the issue with the client.
Transportation is a complicated industry. Alexander, Miller & Associates understands the issues and concerns regarding the financial health of transportation companies. The problems transportation companies face are varied, but there are a few categories into which these problems generally fall.
Cash Flow Concerns
Chief among the collection problems faced by transportation companies is cash flow. Slow payment or nonpayment of invoices by clients directly impacts a transportation company’s ability to conduct business. Not only do transportation companies need to pay their employees, but also they must pay for the expenses related to shipping and maintenance on carrier vehicles.
Due to rising costs, transportation companies face a smaller profit margin. Transportation work is often seasonal. Work is also dependent on need, meaning the nation’s economy directly impacts demand for transportation. In times of economic hardship, such as the strain caused by Covid-19, it becomes more challenging to be sure of the amount of work available and the reliability of clients’ payments.
A buildup of unpaid invoices can cause a company to fail. It is vital to take action to receive payment quickly. Slower action reduces the likelihood of a positive outcome. A collection agency like Alexander, Miller & Associates knows how to professionally manage the transportation industry’s clients, working to get invoices paid before cash flow hinders the ability to do business.
Business Competition
Despite the need for transportation and delivery of goods during the pandemic, more than 3,000 trucking companies were forced out of business in 2020. This is a jump from about 1,000 in 2019. Smaller trucking companies bore the brunt of this loss.
Competition for clients is a concern for transportation companies like these. They need to be paid to stay in business, but they also want to appease their clients to ensure a continuing business relationship. This can be tricky when a client is past due on invoices.
Alexander, Miller & Associates is keenly aware of the need for careful handling of late-paying clients. Our professional team is trained to courteously contact and manage the clients of the transportation industry. Our goal is to make sure invoices are paid, and we do this to safeguard the relationship between the client and the transportation company.
Business Closures and Bankruptcies
It can be difficult for a company to stay in business. Recent events have led to more businesses being fragile and a higher rate of failure. These hardships mean it is even more urgent to take quick action when invoices from a specific company begin to pile up.
A collection company like Alexander, Miller & Associates can identify signs that a client may be in danger of closing. By working quickly, payments may be received before the client’s company goes under.
Although bankruptcy complicates a company’s ability to receive payment, it doesn’t close the door entirely. After a company files for bankruptcy, collection efforts must cease. The decision regarding who will receive payment for outstanding debt is now in the hands of the bankruptcy court, not the client.
However, Alexander, Miller & Associates can take the steps needed to file the appropriate paperwork with the bankruptcy court. The bankruptcy process may be long and drawn out, but the steps we take increase the possibility of the transportation company collecting on the debt.
Client Excuses
Often, when someone is late paying an invoice, they have a slew of excuses and justifications to support their delay. Some may be invented, and some may be real. No matter the circumstances they face, they are still required to pay what they owe.
Handling clients who don’t pay or don’t pay on time is tricky. Working with debtors in a way that facilitates a positive outcome takes skill. At Alexander, Miller & Associates, we know how to speak with debtors who try to defend their late payments with reasons and arguments. We can direct the conversation toward a solution, a solution that gets the transportation company paid.
Small Office Staff
Transportation companies frequently have a small office staff. Their days are full of the work of managing the transportation business. They don’t have the time to handle late-paying or non-paying clients. This can lead to poor communication regarding overdue invoices. Worse, these brief communications often go poorly, damaging the transportation company’s relationship with their client. This can lead to negative word of mouth and loss of business.
At Alexander, Miller & Associates, our job is collections. We do our job so our clients can do theirs. We know debt collection can be difficult and time-consuming. We are dedicated to working on getting invoices paid, allowing a transportation company to focus on the business of transportation.
Alexander, Miller & Associates values our clients and what they do. Transportation is a tricky, complex business. Transportation companies’ impact is mind-blowing. The average value of shipped goods is $4,422 per second. That amounts to about $1,061,280 just in the time it took you to read this!
A smooth-running transportation company requires a smooth process for getting invoices paid. When payments run late, a collection company like Alexander, Miller & Associates is the key to a beneficial outcome.
We are well informed of the laws that govern collections and well-practiced in successfully managing customers with unpaid invoices. We understand the transportation industry and all its complexities and will work persistently and diligently to get you paid.