Pete Kienlen, sales director at Raistone, said that Accounts Receivable Finance is assisting U.S. trucking providers in addressing severe cash flow constraints caused by 30- to 60-day payment terms. This statement was made on March 25.
"The average days sales outstanding (DSO) in the trucking industry is approximately 41 days," said Kienlen. "ARF allows trucking providers to access working capital without waiting for customers to pay their invoices. When all parties in the supply chain — from shippers, to carriers, to 3PL providers — experience greater financial stability, the entire ecosystem becomes more resilient and responsive to market shifts. Average terms between 30 and 60 days are creating liquidity pressure across the industry."
Extended payment terms in the U.S. trucking industry are causing significant financial strain on carriers. According to Raistone, a financial services firm, the average Days Sales Outstanding (DSO) in the trucking sector is approximately 41 days, with payment terms often extending between 30 and 60 days. This delay in receiving payments hampers carriers' ability to manage operational expenses, invest in growth, and maintain financial stability.
Accounts Receivable Finance (ARF) offers trucking companies a solution to mitigate cash flow challenges caused by delayed payments. As noted by Raistone, ARF enables carriers to access working capital promptly by selling their outstanding invoices at a competitive rate, thus avoiding the typical 30- to 60-day waiting period for customer payments. This immediate liquidity allows trucking companies to cover operational costs, pay drivers, and invest in business expansion without incurring additional debt.
Supply Chain Finance (SCF) enhances financial stability across the transportation sector by facilitating early payments to suppliers. According to FreightWaves, SCF, also known as reverse factoring, is a short-term lending arrangement that buyers establish to pay for goods and services provided to them, allowing suppliers to receive payments sooner than standard terms. This arrangement strengthens relationships between shippers, carriers, and third-party logistics providers, fostering a more resilient and responsive supply chain.
Kienlen serves as the Sales Director at Raistone, a financial technology firm specializing in working capital solutions. With over a decade of experience in supply chain finance and financial services, he focuses on providing innovative financing options to businesses in the transportation and logistics sectors. His expertise includes developing strategies that enhance cash flow and financial stability for clients navigating complex payment landscapes.
Raistone is a financial technology company headquartered in New York dedicated to offering working capital and supply chain finance solutions. Founded in 2017, Raistone collaborates with businesses across various industries, including transportation, to provide services such as Accounts Receivable Finance and Supply Chain Finance. By integrating advanced technology with financial expertise, Raistone aims to improve liquidity and operational efficiency for its clients.