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Less Paperwork, More Transport

Sending out invoices, vetting trade credit applications, and chasing late payments takes time and costs money. TNX drastically simplifies this process through central clearing, automatically sending out invoices and paying in 5 days

Trucking is a difficult business. Drivers navigate 40-50t trucks down narrow, winding roads. They load all kinds of freight, from logs to fruit, to pallets of fertiliser. Dispatchers navigate complex inquiries to satisfy customers while making sure that trucks are run efficiently, all the while keeping an eye out for new opportunities to grow the business.

However, there is also an administrative side to running a trucking company: New customers need vetting, invoices need to be sent out for completed jobs, any late payments need to be chased, and accounts need to be kept in order. All of this is less obvious than moving cargo, but all of this is necessary. And it comes at a cost.

Setting Up New Customers

The average costs of setting up a new customer are estimated to be around $190 and take about 2-3 hours. That means in addition to finding a new customer that needs to ship cargo, making sure he is comfortable with a new carrier, negotiating pricing, there is another cost to just sorting out the administrative details of the relationship.

Invoice Creation

According to American studies, a typical SME spends about $15 on each invoice sent to customers. Modern bookkeeping systems have helped to make the process less painful, but gathering all the necessary data, double-checking the inputs, and physically creating the document still takes time.

Late Payments

Late payments have the most easily identifiable cost. The average overdraft borrowing rate is around 10%. So every day of late payments on a $1,000 invoice costs 27 cents. With average payment terms at 35 days, this costs $9.50 per $1,000 of invoiced jobs.

Check my previous post on how TNX can help you getting paid faster

The Central Clearing Approach

TNX centrally clears all jobs done on the platform. What does this mean? It means no more invoices, no setting up of new customers, and no more late payments.

Practically this means that for all jobs done on TNX, a carrier gets only one remittance advice at the end of the day showing how much money TNX is sending them for jobs completed. The remittance advice also shows when to expect the funds: and it will always be 5 days later. No ifs or buts. TNX cuts out the invoice processing from the payment processing: carriers are paid even if cargo owners haven’t paid TNX yet. TNX provides payment certainty.

Trucking companies want to focus on their core business: Working jobs, moving cargo around the country, and doing so efficiently. Not on dealing with paperwork.