Transportation spend management company Trax Technologies and FinTech Raistone Capital have teamed up to offer what the companies said will be “a joint solution designed to create improved cash flow for carriers and extended working capital for shippers,” according to a Friday (Feb. 18) press release.
Under the arrangement, Trax customers will be able to get terms that let them pay invoices 150 days after the dates sought on invoices. Trax will make the payment to cover the gap, the release stated.
“As a result, carrier on-time payment needs are met, while internal working capital mandates are sufficient for the enterprise shipper,” according to the release.
Trax President Josh Bouk said in the release: “Most of our enterprise customers already use various forms of supply chain finance to manage working capital. However, most of these programs struggle to address the global logistics spend, which is increasing to an average of 7% to 9% of cost of goods sold. …we can now help our customers expand their working capital programs and improve the cash flow of both shipper and carrier.”
Trax uses cloud-based technology to provide help managing complex supply chains to customers in North America, Latin America, Asia and Europe, the release stated.
“Buy now, pay later has been an unparalleled success with consumers, and it’s time for the same funding flexibility to be extended to all businesses, including freight services,” said Raistone CEO Dave Skirzenski in the release. “Together with Trax, Raistone is focused on providing much-needed working capital to an essential component of the global supply chain.”
Raistone “enables the financing of billions of dollars in transactions every year,” according to the release.
In May 2020 amid the cash crunch facing small- to medium-sized businesses (SMBs), Skirzenski told PYMNTS that SMBS face “a variety of challenges when they are being directly evaluated as a credit risk counterparty.”
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