Keep the cash moving

Keep the cash moving

The wheels on the trucks go round and round… The director of the transport company specializing in contract and food deliveries explains that it is also very important for the cash to circulate in the transport sector, especially as purchasers’ payment terms to suppliers have lengthened in the sector in general over recent years.

“In contrast, transport company expenses are paid in advance. We have to pay our driver salaries and the fuel for the trucks every two weeks, and these make up a large share of our expenses. At the same time, payment terms in the sector have become up to three times longer, which, of course, has a considerable impact on liquidity and makes the planning of daily operations much more difficult,” says Director Jukka Pöytälaakso.

Kuljetusliike Pöytälaakso Oy was among the first companies to join Posti Group’s Supply Chain Finance program. The company has been a Posti Group supplier for 10 years.

“Our cooperation has intensified all the time and the supply chain finance also shows that Posti trusts us and considers us a long-term partner in the provision and development of their services. In the challenging operating environment, solutions that promote mutual benefits strengthen both parties.”

Pöytälaakso explains that supply chain finance is a popular short-term financing alternative as it is reasonably-priced and does not require fixed collateral. The transparency of cash flows also increases as the supplier can use the trading platform to monitor information on the payments that have been approved by the purchaser.

“Above all, supply chain finance gives us flexibility and helps us to keep in control of matters. The possibility to receive finance for our sales invoices, if we need it, quickly strengthens and balances our liquidity. It also provides a backup for unscheduled expenses and helps to avoid penalty interest expenses, for example.”

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READ MORE: “Supporting key suppliers is a win-win strategy”.

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