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for your transport company
Factoring offers transport companies the opportunity to increase their liquidity, get their money quickly and increase their turnover. With the help of the quickly available money, new orders can be accepted and resulting transport costs can be planned more efficiently. At the same time, it is also worthwhile for forwarding companies to work with factoring companies such as JITpay™.
Favourable framework conditions can be established for the transport subcontractors. They also receive their money quickly through the factoring service, while the client, i.e. the freight forwarder, can agree longer payment terms. This not only strengthens the business cooperation, but also the loyalty of the subcontractors to the client.
Transport companies often pay in advance to finance the transport for their customers. Factoring works in a similar way: you pass on your financing risk to a factoring company such as JITpay™. This company takes over the rights to the receivables and settles them after the transport order has been successfully completed.
You submit the POD (Proof of Delivery) to your factoring company and receive approx. 80 – 90 % of the invoiced amount within 48 hours. You are paid the remaining amount as soon as the client has settled the entire amount with the factoring company. This means you receive your money even before your customer has paid, which avoids long waiting times and increases your liquidity for new orders.
ADVANTAGES
+ Immediate liquidity and no payment bottlenecks
+ Time and cost savings by outsourcing receivables management
+ Low factoring fees, which are often determined by turnover
DISADVANTAGES
– A certain percentage of turnover is missed out on
– Not all clients appreciate it when the supplier commissions a factoring company to collect the receivables.
the factoring company, such as JITpay™, bears the full risk.
No payment protection for the factoring customer.
Clients are informed transparently that the receivable has been sold and that there is another payee. This is often combined with genuine factoring.
Sale of receivables on a case-by-case basis or above a certain amount.
For transport companies in particular, which often work with low margins, factoring offers an opportunity to improve liquidity and minimise the risk of payment defaults. Continuous liquidity means that more orders can be accepted, which increases turnover and improves creditworthiness.
In addition, administrative expenses are reduced as the factoring company takes care of receivables management. Factoring enables transport companies to concentrate on their core business and further expand their company.
Or send us an email to:
support@JITpay.eu
JITpay™ only charges one fee per submitted transport invoice, depending on the agreed payment term. No hidden costs, no surprises.
