Freight & Logistics: An Industry Driven by Payments
Cash flow is extremely important in any industry – especially the freight and logistics industry. Seamless payments are becoming more important to this sector because the industry is dependent on the efficient and secure movement of funds to complete business transactions.
The industry has long been vulnerable to payment delays, errors, and fraud mainly due to its complex nature and the use of old technologies. CloudTrade Logistics Vice President, Roger Hatfield, said that freight and logistics is an industry driven by payments, and that solution providers need to start by fixing the issues associated with invoicing to really make an impact on the industry.
An invoice is the first step in initiating a payment, that holds key information associated with both sides of a transaction. Paper invoices and manual data entry are still very prevalent in the freight and logistics industry. According to PYMTS.com, a customer’s payment is often delayed to a service provider and the service provider also fails to reconcile payments received due to the lack of efficiency within the industry and old habits.
When companies can’t match an invoice against a purchase order or delivery documentation, it can lead to these payment delays, fraud, and even non-compliance with rules and regulations. Also, inaccurate data or delayed invoice data can postpone cash flow to shippers who rely on supply chain financing to run their business. “Since the invoice discount rate is driven by the age of the invoice, the processing cycle is critical,” Hatfield said.
Faster and accurate invoicing and automated data capture are key to faster payments in the freight and logistics industry. Seamless invoicing, payments, and movement of data, from compliance and fraud risk mitigation to quicker access to working capital are all important to the success of this business sector.
i3 Merchant Solutions Can Help
Chasing checks is annoying and cash flow is stressful, but our i3 Merchant Solutions advisors make credit card processing simple. When you accept credit cards, you have leverage to influence payment terms and improve your cash flow – which will earn you more business.
i3 Merchant Solutions offers solutions specific to the freight and logistics industry that include:
- Significantly Reduced Credit Card Processing Rates
- Electronic Invoicing
- Next-Day Funding
- Level 3 and Large Ticket Processing
- Accounting and ERP Software Integration
- Simple Reporting and Deposit Reconciliation
Ready to Strengthen Your Company’s Cash Flow?
Contact us online or call 1-800-621-8931.
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