Empowering Truckers and Vendors: Clickargo's Integration with Invoice Finan
In the ever-evolving landscape of logistics and supply chain management, the digital revolution has become a driving force for innovation and efficiency. Clickargo, a revolutionary digital logistics platform, has set new standards in the industry by seamlessly integrating with customs and regulatory authorities to streamline custom declaration, fleet management, cross border compliance and shipping documentation, to improved working capital management, thanks to its innovative invoice financing capabilities. In this article, we will delve into how Clickargo's integration with invoice financing benefits truckers and vendors in the logistics ecosystem, ultimately enhancing their business continuity. To illustrate these advantages, we'll explore a real-life example involving a freight forwarder AOP Logistics.
Clickargo's Integration with Invoice Financing
The synergy between Clickargo's advanced logistics platform and invoice financing is a game-changer for businesses, particularly truckers and vendors. Invoice financing, also known as accounts receivable financing, is a financial tool that allows businesses to sell their unpaid invoices to a third-party (in this case, Clickargo), which provides immediate cash in return, minus a fee. This process aids businesses in addressing short-term cash flow challenges and capitalizing on growth opportunities. Clickargo plays a pivotal role in streamlining and expediting this process, ensuring vendors, especially fleet truck owners/drivers in the logistics ecosystem can access much-needed capital more swiftly.
An example: AOP logistics and fleet truck owner P-Speed
To illustrate how Clickargo's integration with invoice financing benefits truckers and vendors, we'll explore a scenario involving AOP Logistics and one of its suppliers, P Speed.
AOP logistics, a leading 4PL provider in Southeast Asia, annually purchases over S$40 million worth of products and services from various suppliers. Typically, these suppliers extend a credit term ranging from 30 to 90 days to AOP Logistics.
On 31st November, 2023, AOP logistics contracts $9000 worth of trucking jobs to P Speed. AOP Logistic’s credit terms with P Speed is set as 60 days. However, P Speed faces a cash crunch due to impending expenses such as employee bonuses ahead of Chinese New Year.
In this situation, P Speed can turn to Clickargo's invoice financing services to bridge the cash flow gap:
P Speed visits Clickargo's platform and confirms their intention to finance the $9000 invoice.
Clickargo's platform then promptly contacts AOP Logistic’s Finance to confirm the receipt and condition of the supplied trucking services and the commitment to pay the invoiced amount of S$9000 when due.
Upon receiving confirmation from AOP Logistic’s Finance, Clickargo releases $8820 to P Speed, deducting a nominal fees from the full invoiced amount.
AOP logistics is informed of the transaction, ensuring transparency in the process.
As the invoice's due date approaches, AOP logistics makes a direct payment of $9000 to Clickargo, completing the invoice financing arrangement.
Benefits of Clickargo's Integration with Invoice Financing
The AOP Logistics and P Speed example highlights several key benefits of Clickargo's integration with invoice financing:
Faster Access to Working Capital: P Speed gains immediate access to cash, bridging the gap between the sale and payment receipt, thereby ensuring that critical expenses can be met without delay.
Enhanced Efficiency: The integration streamlines the entire invoice financing process, reducing the administrative burden on all parties involved.
Transparency and Accountability: Clickargo's involvement ensures that the transaction is conducted transparently, with AOP logistic’s confirmation, adding a layer of accountability to the process.
Improved Cash Flow Management: Businesses like AOP Logistics can maintain a healthy working capital by allowing their suppliers to access funds without compromising their own financial stability.
Risk Mitigation: The use of invoice financing can help mitigate financial risks for suppliers, reducing their reliance on uncertain payment timelines.
Clickargo's integration with invoice financing is a game changer in the logistics and supply chain industry in Asia. By facilitating quicker access to working capital for truckers and vendors, it empowers businesses to overcome financial challenges and seize growth opportunities.
As an end-to-end elogistics platform that enhances visibility and traceability in cargo delivery, Clickargo, integrates CO2 emissions tracking, and monitors driving behavior to help clients achieve and quantify their carbon emissions reduction. Clickargo elogistics solutions is now eligible for up to 70% IMDA Grant. Clickargo is a flagship platform solution of GUUD, as a pioneer in global trade technology, backed by decades of experience and a commitment to innovation. For more information on Clickargo and Invoice Financing, contact [email protected].