Client story – SIA RRM P
SIA RRM P is a small transport company that has operated since 2022 and specialises in bulk cargo transport. It currently works with 3 vehicles.
Situation and challenge
Before working with Scandipay, the company’s biggest challenge was not that customers paid invoices particularly late, but the uncertainty about when exactly invoices would be paid. In one case an invoice might be paid after a few days, in another after two weeks. Sometimes part of the amount was paid in one week and the remainder a week later. Payment timing largely depended on what could be agreed with the partner at the time. Although the invoices were eventually paid, this uncertainty made normal financial planning significantly harder.
The company wanted to put its cooperation model in order and move to the usual market practice – offering the customer a clear payment term of 30 days or longer. In the transport business this is especially important. Invoices for services provided are usually prepared twice a month (around the 15th and at month end), and applying a standard payment term to them meant the company needed a relatively large reserve of its own funds.
The Scandipay solution
In search of financing, the company first approached both banks and the non-bank sector. At banks it faced a time-consuming, credit-like risk assessment process, and its transaction volume was not sufficient to be granted a factoring limit, while offers in the non-bank sector were not economically acceptable. After noticing a Scandipay ad on social media, the company found the solution it was looking for.
1. Quick assessment: As the partner, or debtor, met Scandipay’s criteria, cooperation started after a single call within a few days – with no need to submit management financial statements or prepare additional financial information.
2. Prompt payout: The cooperation process is as simple as possible. When the invoice is sent to the partner, it is simultaneously sent to Scandipay, and by the next business day the money is in SIA RRM P’s account.
Result
The biggest benefit of invoice financing is predictability – the company now knows exactly when the money will be in its account. This has helped put the business relationship with its partner in order. There is no longer a need to negotiate paying invoices in instalments or on special terms. The company clearly offers its customer a payment term of 30 days or more, without worsening its own cash flow position.
“Money in the settlement account removes more stress than a nice figure in the receivables column. Although this service is of course not free, its cost is relatively small compared with the benefit of having liquidity available. Moreover, when funds are available to a company, it is often possible to take advantage of other favourable deals, so that at the end of the day the gain may be greater than the commission paid for financing the invoice.”