Nuvocargo Launches QuickPay: The First Financial Product For Carriers
At Nuvocargo, we understand that carriers need cash flow to operate and cover the expenses related to each shipment. This is true for many businesses, but it is vital for the trucking industry, which faces high asset costs and low margins. In Mexico, carrier-focused discounts over invoices like QuickPay are rare, accentuating the lack of financial stability associated with having to wait 30 to 60 days for payment. In consequence, many times our carriers turn to loans with high-interest rates to cover fixed costs like gas, driver salaries, and tolls. For this reason, we have decided to offer QuickPay - a cash advance product that allows carriers to receive their payment in less than 48 hours for a competitive rate over the invoice value.
Getting access to this service is easier than other financing products and doesn’t require going through a slow and bureaucratic process of documents, approvals, and validation. A carrier that moves with Nuvocargo automatically has the option to select QuickPay when completing the online invoicing process. It's as easy as uploading a document and submitting.
QuickPay ensures payment, allowing our carriers to manage cash in a way that makes them operationally more efficient and allows them to grow their business. "This is the first step to be a multi-product platform that offers solutions not only for logistics, but also for other existing needs, as well as the financing of our suppliers," said Luis Torres, Head of Finance and Business Operations at Nuvocargo.
Although on the surface Nuvocargo appears to be primarily a logistics company, our vision is to be an all-in-one solution in the industry, helping operators, carriers, SMEs, and businesses from various countries with multiple pain points that go beyond the movement of goods. These include cargo insurance, working capital financing, trade financing, inventory loans, and more.
Considering that between seven and ten million trucks move between Mexico and the United States each year, the market potential is huge, approaching 20 billion dollars annually. Nuvocargo seeks to continue growing its offer of financial products by thinking about how to add value to its partners, giving them a better experience. With this launch, we have started to consolidate our supply chain finance offering, in which we see tremendous growth opportunities, such as fleet financing or merchandise financing for exporters. QuickPay stems from an acquired understanding of market needs, and the desire to provide a better experience for our partners.
"We are learning to use our data and our relationships with customers and suppliers to start offering more products and a better experience," said Deepak Chhugani, CEO and founder of Nuvocargo. "Nuvocargo thinks of its partners as customers and one way to help is by paying them faster," he added.
We continue to consolidate and strengthen our relationships and services in the industry to position Nuvocargo as the preferred partner to empower both carriers and shippers. More than 10% of our active carriers are already using QuickPay with positive results. Seeing the difference this makes in the experience of our suppliers motivates us to continue expanding our portfolio of products and services to become the preferred logistics partner in the industry. This is just the beginning!