Image of two people giving and receiving money to denote capital loans for logistics

Credit Management: How Fintech is changing the game in capital loans for logistics?

What is credit management and how does it work? Credit management is the process of efficiently issuing credit and collecting the payments when it is due. Lack of proper control over credit management in logistics results in additional expenses in terms of interest rates and might even lead to debt. For instance, the supplier may allow a credit period of 10 days for payment to be made after the purchase of goods and the company might either depend on its existing resources or on customers to make their payments in order to pay the supplier within the stipulated time. Therefore, capital loans for logistics especially to cover trip expenses is crucial for smooth operations. Why is capital loans for logistics crucial for smooth operations? Credit management in logistics needs utmost attention because it affects the smooth operations within the firm and also the movement or transfer of goods outside the firm. Any delay in the payment by the customers or the company to the supplier affects the credit worthiness or credibility of the company and in turn affects its growth. The integration of fintech for efficient credit management in logistics helps in securing a commercial line of credit for logistics. How is fintech changing the game in capital loans for logistics? Let’s Wrap Up! Credit Management in logistics plays a crucial role in business finance. It promotes financial stability and scope for growth resulting from seamless cash flow for business operations. While issuance and payment of credit involves risk, the integration of fintech solutions in credit management services provides innovative processes and big data analytics to reduce risk and manage credit efficiently. Fintech companies provide the best business line of credit for logistics by optimising cash flow, assessing credit worthiness and increasing credibility and growth.  Axlerate is a fintech platform for logistics that helps you simplify invoice payment management systems for logistics payments to provide uninterrupted cashflows through QR codes, payment pages, links, invoices and web integrations.