In today’s market of tight capacity, shippers are turning more frequently to freight brokers. Many small and mid-size brokers are unable to handle the sudden increase in volume, as these same market conditions have created a cash flow imbalance from brokers paying carriers for loads before shipper customers pay on invoices.
Traditional accounts receivable-based financing and factoring programs are too limiting and expensive to support the high volume, low margin brokerage business, the companies say. With the new integration with BAM Worldwide, MercuryGate says its brokerage clients can receive funds instantly at the transaction level in their TMS environment.
“MercuryGate has integrated our world-class TMS with a financing solution that is designed specifically for the transportation industry, by people in the industry,” said MercuryGate CEO and Co-Founder Monica Wooden. “We are excited about the opportunities this gives our customers, as they grow their businesses and increase their margins.”
“As the market place shifts, more brokers are searching for the right TMS technology and financing solutions to handle increased shipper demands,” says Todd Ehrlich, president and CEO of BAM Worldwide. “MercuryGate’s partnership with BAM Worldwide is the only complete solution to drive growth.”
Besides being able to respond quickly to growth opportunities, MercuryGate and BAM clients will benefit from the increased efficiency in payment processing and can reallocate resources to generate new revenue. Brokerage clients can also improve credit scores and increase margins since carriers are willing to soften their rates in exchange for fast, reliable payment.
Brokers pay a low, one-time fee for each transaction with interest charged only for the number of days that funds are outstanding. Unlike traditional bank lending or factoring arrangements, BAM does not require personal guarantees or take control of collections.