Cases · Case detail
How a young transport company grew without waiting on payments
A transport company running across Europe paid its carriers within a week while clients took sixty days. Every extra trip cost money first. With factoring from SOOF Finance, the money comes in as soon as the trip is invoiced.
The situation
Two payment rhythms that do not line up
The business arranges road transport and express shipments through more than thirty European countries, a classic profile for transport and logistics. The client gets a single point of contact, the business arranges the trip.
That is also exactly where the tension sits, and with customers across the border the credit risk of exporting comes into play as well. "The carrier wants its money quickly. That makes sense, because it is paying for diesel, tolls and a driver," Thijs says. "My client pays after sixty days. I finance that difference."
With a few trips a week that is manageable. With growth it is not. "Every new client is an outgoing first. You put money on the table before anything comes in. So the better it goes, the tighter it gets."
It is the classic situation in transport and logistics: the costs run weekly, the income monthly. There was simply no buffer to absorb that.
"At the bank I did not get far. A young business without years of figures is not much use to them. And I had no time to wait three months for a decision."
The approach
The money comes in when the trip is invoiced
The first conversation with SOOF Finance was about the trips and the clients, not about the balance sheet. "Pointed questions. Who are your clients, what are their terms, how do you submit. Within one conversation they knew where my money was stuck."
"The onboarding was well organised. A simple process with fast payment."
How it works
The trip invoices transfer to SOOF. After submission, the largest part of the invoice value is paid out, and the client pays later on their own term. The remainder follows once that payment comes in.
That turns the rhythm around. The carrier is paid out of money that is already there, rather than out of an advance the business has to find itself.
The line has no fixed ceiling. More trips means more invoicing and so automatically more headroom, without having to renegotiate. For a business growing month on month, that is the difference from a facility you have to stretch every year.
The results
ReviewsReviews
What others say
Through working with SOOF, we are strong in more than just foundation work.
The onboarding was well organised. A simple process with fast payment.
We are very satisfied with what they offer, the way they work and the speed of payment. On top of that they think along with us actively and are always easy to reach. The contact is pleasant and professional.
We grow seriously every year, but finding suitable finance for a young business turned out to be hard. From the first contact with SOOF: short lines, pointed questions, quick to move. My feeling straight away was that they understand entrepreneurs here.
SOOF responds to the growing capital need in automotive. Vehicles on their way to their final destination are advanced against efficiently, so that we keep enough working capital to keep growing. Short lines, quick decisions, and a relationship that goes further than the transaction.
Thijs
Eigenaar van een transportonderneming, regio Zaanstreek
"The onboarding was well organised. A simple process with fast payment."
"I can now say yes to a larger client. Before, I would work out first whether I could carry the pre-funding."
"Short lines too. If something comes up, I have someone on the phone who knows my file."
Frequently asked questions
Yes. Especially then, because you usually pay the carrier before your client pays you. That difference is exactly what factoring bridges. What factoring involves is set out in what is factoring.
Once the invoice is submitted we pay out the agreed share. We agree the exact percentage in advance, on the basis of your receivables book.
Yes. With longer foreign payment terms and limited bank security, factoring is often precisely the right form. We assess your receivables per customer.
No. For a factoring application your annual accounts have to be finalised. We also look at creditworthiness and at the history of the business and its director.
The situations in our cases come from our own practice. We publish them anonymised: names, companies, amounts and other details have been changed, so that a case cannot be traced back to an individual client. Working capital is client data, and we keep that confidential. A case describes one situation and says nothing about the outcome in your case.
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