The management and optimization of trade receivables is a strategic challenge for transport companies.
Financing of supply chain cash flows and trade receivables books is important for the successful management of many businesses. Some supply chains (manufacturer – logistics company – transport company – retailer) are born with lots of pressure over their “integrated working capital” and the story is being repeated, it is the weakest who pay, in this particular situation the weakest is who is paid later or defaulted.
The payment terms in the transport sector are variable according to the countries laws.
In France, for example, the law has set a specific payment delay of 30 days from invoice date. However, the reality is less favorable to transport companies who usually get paid on average after 49 days (source Atradius Group 2017). In the Eastern part of Europe, payment delays can be very long with for example 90 days and sometimes up to 120 days.
In a very competitive environment, reducing real payment terms and the overdue rate is crucial.
Many companies have difficulties to pay their suppliers on time. One of the reasons is the late payment from his own customers. This situation can weaken the relationship with suppliers, and threaten the activity. Payment incidents can also downgrade a company rating with direct impact on granted credit limits.
VIALTIS has developed a supply chain partnership solution, which facilitates stable relationships between players throughout the supply chain; from manufacturers and logistics companies to transport companies.
DriveV supports you to simplify service supplier complexity and boost profits by bundling your needs into ONE solution and ONE invoice.
For more details, do not hesitate to contact us.