Now, looking at things in a more realistic way, fintech companies are positively affecting all our lives. And with the strength that fintech companies have swooped up the markets and the startup world, they are making a meaningful impact on the trucking and logistics sector all the time.
And rightfully so, the logistics sector has people always on the move, between states, countries, and cities daily. So, from allowing small and medium enterprises to remove the limitations of the banking industry, stay more organized with less manual labor and help the trucking and logistics businesses thrive, let’s look at a few ways that the fintech world is improving this industry.
It helps businesses improve their capital management.
Fintech solutions allow truck drivers, customers and fleet managers to manage their capital seamlessly.
Some fintech businesses allow to fund payments to their supplier partially. The current way that the logistics industry works is those small logistic companies will have a buffer period of up to 40 days before they get their payment.
If you’re a large enterprise, you can deal with that, but if you’re a small business, waiting more than a month to get paid can severely stunt your growth and damage your business.
Fintech companies help manage and digitize bills and receipts.
One thing that’s in every logistics business in the world is the number of paper documents that are being handled on a daily basis. It’s a lot.
Most companies will deal with thousands of physical documents every week, and with years in operation, this becomes hard to handle.
Fintech businesses help enterprises of all sizes digitize their bills, receipts, and invoices. This makes the organizing and keeping track of documents much more comfortable, quicker and cheaper.
Processes start to become more and more automated.
The logistics and trucking industries are lightly put outdated. As we mentioned above, companies are still dealing with physical documents to a large extend, where other sectors have stopped dealing with any printed documents.
More startups are appearing and solving this problem. This way it’s cheaper for the companies, as they have to employ fewer people to deal with the mind-numbing work, and it’s easier for drivers to manage their documents while working on the field. This eases the things for drivers, making their work-flows much less stressful, thus reducing the risk of an accident to occur while on the job. According to the Lamber Goodnow website, nearly 87% of all truck-related accidents happen because of the stress of running late for a job or distraction
And it’s cheaper for businesses who work in multiple countries.
While the United States is quite large, and most drivers can freely drive between states without any worry, or changing currencies, in Europe, it’s kind of different.
Most small and medium businesses have three to five trucks who’re spanning within three or four different countries, carrying two or three different currencies at all times.
So, companies like Revolut provide seamless transactions without the need to go to your bank or get overcharged just because you’re spending abroad.
With so much to be improved and updating the trucking industry, fintech companies are only to keep on innovating and developing in the near future.