Most business & nonprofit managers understand how route planning software can save them time and money…but many don’t think about how deploying RouteSavvy also can be an effective business credit boosting strategy.
In today’s high-interest climate, route planning software tools like RouteSavvy can improve your bottom line and help position your business or non-profit for additional financing, a bank loan, or a better credit score as you pay down debt.
How Does RouteSavvy Serve As a Business Credit Boosting Strategy?
In the simplest of terms, RouteSavvy helps improve a business or non-profit’s bottom line…and in several ways.
First, RouteSavvy’s ability to generate more efficient routes can significantly reduce operating expenses, including:
• Fuel spend (typically 60% of a fleet’s operating budget)
• Maintenance costs tied to mileage (tire replacement, oil changes, etc.)
• Overtime labor costs, and more.
Second, RouteSavvy’s more efficient routes can increase the number of deliveries, pick-ups, service calls, or sales call you can complete in a week. That results in extra income that can be applied in a variety of ways:
• Paying down debt;
• Building up a savings account; and
• Making strategic investments to improve the business, to name a few.
Once you’ve used the savings achieved from RouteSavvy’s more efficient routing to improve your organization’s financial position, you can then leverage your improved financial position in the pursuit of loans, better interest rates, and financing for equipment purchases.
4 Financial Parameters Banks Use To Determine Your Credit Worthiness & How RouteSavvy Helps
When you’re applying for a business loan, a business line of credit, or capital to purchase needed items for your business or non-profit, banks are going to assess the following factors:
1) Credit Borrowing and Payment History: Banks will review your credit borrowing history and your payment history. When you use RouteSavvy to lower operating expenses, and/or generate more income, and then apply those extra dollars to paying off loans or lines of credit early, you’ll get bonus points with your bank.
2) Capacity To Repay A Loan: An obvious consideration is that banks will assess your capacity to repay a loan or business line of credit. Improved financial performance from deploying RouteSavvy can help your business meet bank assessments on whether you have the ability to repay a loan in a timely manner.
3) Collateral For A Loan or Line of Credit: Many banks offer unsecured lines of credit for businesses. But the price for that unsecured line of credit is higher interest rates that can eat away at your profit and savings. RouteSavvy’s ability to help businesses & non-profits save money & make more money all combine to help build up savings and a “rainy day” fund. When you have money in the bank is when banks are more likely to take a risk and loan your business additional funds or provide a business line of credit.
4) Capital For Equipment Purchases: When you purchase equipment or hard goods, that physical asset can serve as the collateral on a loan, i.e., if you miss payments, they can repossess the physical item. RouteSavvy can help with capital equipment purchases – either by providing the funds to buy equipment without financing it; or by providing the savings & extra income that lower the amount of money you need to borrow.
When you use RouteSavvy route planning software to both reduce operational expenses and increase revenue, it can lead to RouteSavvy serving as a business credit boosting strategy to grow your business or non-profit.
Need a business credit boosting strategy in advance of pursuing a business loan or business line of credit. Deploy RouteSavvy & improve your financial circumstances first. Test drive RouteSavvy with our FREE, 14-day trial.