As a matter of fact, it is the biggest mistake that small transportation companies make, in general.
In order to start this business right, you need a good chunk of capital.
In particular, 25% of your trucking business is killed by the cash flow.
Continually, it is the greatest phenomenon that people fail to understand.
Furthermore, it is widely known among the rest of the businesses and the companies as the cash flow problem.
Accordingly, keeping your cash flowing until it becomes a problem, you can hardly find a solution to it.
Small transportation companies dealing with this are led to bankruptcy, eventually.
However, you are probably wondering:
“How can a seemingly healthy transportation business go bankrupt?”
Imagine you own a company which has a contract with a due date to transport particular freight.
Further, let’s say your company produces that freight and it needs to transport it on-time.