The transport industry constantly struggles with payment backlogs
According to a study conducted by Keralla Research at the beginning of 2021, as many as 62% of transport companies were struggling with payment delays at the end of the first quarter of 2021. Problems obtaining money owed under their obligations mainly concerned transport contracts, leasing and fuel cards. Interestingly, difficulties also arose with obligations to ZUS and the Tax Office.
However, the biggest problem faced by companies in the transport industry was obtaining payments from… other companies in the same industry. Payment problems most often affected subcontractors in the TSL industry. Nevertheless, industry entrepreneurs emphasize that their businesses are continuing to grow – mainly thanks to the development of the e-commerce industry. The popularity of online shopping naturally translates into greater demand for transport services.
In summary, sentiment in the TSL industry is fairly good, mainly due to growing demand for services. Still, most companies in the industry have considerable problems with payment backlogs. And as we know, these can be very dangerous.
Payment backlogs – can online factoring solve the problem?
Payment backlogs are a problem that also occurs in many other industries, including manufacturing and construction. Interestingly, invoices with deferred payment terms are particularly popular in these industries. The option to receive such terms is often one of the most important factors influencing the choice of contractor.
Unfortunately, for a contractor, having to issue an invoice with a long payment term, as a condition for establishing cooperation, can be very troublesome. Why? Waiting for money for as long as two months (in the case of invoices with a 60-day payment term) can negatively affect a company’s financial liquidity. And from there, it is only a short step to the emergence of payment backlogs, whose consequences can prove catastrophic.
Can online factoring be the solution to this problem? Definitely – there is no doubt about it. Factoring is a business financing service that does not require many formalities, and the money can be received on the same day. Importantly, the popularity of online factoring is growing at an astonishing pace – also among entrepreneurs operating in the TSL industry.
Use factoring wherever you are!
It is worth mentioning that online factoring is particularly useful for people working in the transport industry. First and foremost, financing can be accessed from any location – even while on the road or during a long stop in a car park. There is no need to personally visit a factoring company’s branch or sign documents.
In addition, online factoring means minimal formalities. Simply send the invoice, wait for the application to be processed (which takes no longer than 15 minutes), and that’s it – the invoice payment can reach your account even on the same day.
There is no doubt that this is an excellent way to deal with payment backlogs, especially if they are caused by issuing many invoices with deferred payment terms. Not having to wait for transfers from contractors significantly improves a company’s financial condition. The company has access to funds that enable it to cover its current obligations. No waiting, no delays, no payment backlogs!
Fandla – online factoring for the transport industry and beyond
Fandla is a modern company offering online factoring to entrepreneurs interested in this form of financing. What sets this company apart from other factors is the option to use 100% online factoring, combined with an exceptionally fast financing process. Very often, the money reaches entrepreneurs’ accounts on the same day the application is submitted. So if you are concerned about payment backlogs and losing your company’s financial liquidity, Fandla online factoring may be the ideal solution for you. After all, in business, the point is to make money flow!