Specialized
logistics factoring
Discover the advantages of factoring
for your transport company
Factoring for transport companies:
More liquidity and fast payment
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.
How does factoring work?
More liquidity and fast payment for transport companies
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.
All you have to do is to submit your documents
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 and disadvantages of factoring
for transport companies:
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 needs to be passed on
– Not all clients appreciate it when the customer commissions a factoring company to collect the receivables
Types of factoring
Genuine factoring:
The factoring company, such as JITpay™, bears the full risk.
Non-genuine factoring:
No payment protection for the factoring customer.
Open factoring:
Clients are informed transparently that the receivable has been sold and that there is another payee. This is often combined with genuine factoring.
Individual factoring:
Sale of receivables on a case-by-case basis or above a certain amount.
Working with JITpay™
We are from the industry for the industry!
Why is factoring worthwhile
for transport companies?
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.
How much does it cost?
JITpay™ only charges one fee per submitted transport invoice, depending on the agreed payment term. No hidden costs, no surprises.
Register now for free
Our factoring service is available for customers from following countries:
Germany, Netherlands, Poland, Czech Republic, Spain, Slovenia, Slovakia, Lithuania and Latvia
Any Questions?
This is how it's done
Do you have questions about registration or our services and processes? In our FAQ you will find answers to the most important questions – and if not, please send us a contact enquiry through the contact form.
