Are truckies who own and operate their own vehicle up for recession? How about truck drivers who have a small fleet of hauling business, are they equipped with adequate cash flow protection to help tide things over? It is a fact that Australia is one of the lucky nations who haven’t encountered recession in the last twenty years or so. According to financial market analysts recently, however, the nation may have to face a “one-in-three” risk of recession next year– something that truckies who rely greatly on their transport income and revenue for a living.
Truckies Recession Woes
Without a doubt, no one wants to be caught unaware in times of recession. However, even the best of seasons can easily backflip into something worst when no contingency plans are in place to aid one’s business cash flow. It is important to note that the trucking industry is not immune to the implications of a recession. Add to the fact that this industry is a natural magnet for disaster– and you are in for the biggest upset when not acted upon accordingly.
There are many causes to recession. While there is but a slim chance of stock market crash, massive swindles, asset bubbles, high interest rates, or falling housing prices/sales, many driver-operators who manage their own trucks as a source of income and business revenue will still be hit badly. Manufacturers and business will start closing shops and there will be none left to haul. When there’s no business to contract, cash in-flow will be severely affected resulting to lag behind in expenditures. In short, they will not only be facing high risks of accidents and illnesses but also the dreaded condition of being thrown into the mudpit of losing everything they worked for when recession strikes.
Cash Flow Protection
As important as finding a safety net for accidents and illnesses, it is only fitting to find the right cash flow protection to ensure stability even when on a recession. It is common for small-scale businesses as yourself to easily get the burnt out of economic turmoil. When thinking of maintaining a bullish cash flow for your trucking business, certain strategies must be employed to get away from the short lull unscathed.
Aside from getting the right cash flow protection insurance, you may also cut back on some operating costs to compensate for the loss. Long term projects and new deals may sound great in a bullish economy but steer clear of those during recessions. Look for smaller short-term contracts that ensure fast turnover instead. But most importantly, make sure that your cash flow protection policy can shoulder needed outflow to make your trucking business run when the going gets tough.
When picking the right cash flow protection program, it is imperative to trust professionals who have extensive knowledge in this field. Financial aspects of the business can be hard to fathom. Legal jargons and implications can put anyone in a topspin with seemingly no end to the dizzying nature of the situation. With a reliable financial adviser on your side, you are halfway to finding the solution to your trucking business woes during a recession.
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Want to learn more about cash flow protection for your small-scale trucking business or self-owned trucking services? Please enquire online or call our office to have cash flow protection insurance in place for you, your business and your family.