Secure liquidity for freight forwarders – always on track with factoring
Challenge: High running costs and long payment terms
Freight forwarders face the challenge of covering high running costs, while customer payments often take an average of 40 days to arrive. While trucks are in use every day, fuel, driver wages, tolls and maintenance costs must be paid immediately. This financing gap can lead to liquidity bottlenecks – especially when order volumes grow or payments are further delayed.
Calculation example: Overview of costs and liquidity requirements
Monthly turnover: € 400,000
Customer payment terms: 30 days
Ø Average receivables period in your industry: 40 days
Ongoing monthly costs: € 320,000 (fuel, wages, tolls, maintenance, etc.)
The challenge without factoring
Without factoring, the company has to wait for customers to pay their invoices on time. Delays or late payments can result in insufficient liquidity being available to cover running costs. Securing payments for regular costs such as fuel, wages and truck financing is vital for the freight forwarder. Disruptions can quickly lead to a standstill in transport operations.
Our solution: factoring for immediate liquidity
With factoring, outstanding invoices can be sold directly to Deutsche Factoring Bank. 90% of the invoice amount is paid out immediately, providing instant liquidity for operating expenses. The remaining 10% is paid out, minus a factoring fee, as soon as the customer pays. In addition, the factoring provider assumes the full risk of payment defaults. Interest rates are in line with market conditions.
Your factoring advantages at a glance:
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Immediate liquidity: Invoice amounts are available within 24 hours, instead of waiting weeks for payments to come in.
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Financial stability: All running costs – from fuel and wages to maintenance – are covered at all times.
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Growth without waiting: Greater financial flexibility allows you to accept new orders and expand your sales.
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100% protection against payment defaults: Deutsche Factoring Bank assumes the entire default risk of the debtor, so that no financial losses arise from insolvent customers.
Factoring enables the freight forwarder to remain financially flexible, meet its operating costs without interruption, and pursue new growth opportunities.
*The figures shown in all examples on this page are fictitious and are for illustrative purposes only. Results may vary depending on the customer due to different parameters.
