The transport and logistics sector in Australia has an estimated annual revenue of $101.51 billion, adding $39.91 billion to the economy in 2019-20. In New Zealand, more than 90% of freight is transported by road with the freight and logistics market expected to register a compound annual growth rate of more than 3% between 2022-27.
This strong growth trajectory is expected to be driven
by investment, data science and customer demand. The significant upswing in e-commerce seen during the height of the COVID pandemic is showing no signs of abating and the digital transformation that occurred within the sector has enabled the transport of more goods than ever before in a more efficient and cost-effective manner.
For those in the logistics business, be it road transport, logistics, warehousing or stevedoring they are no doubt fully aware of the disparity between when work is completed, compared to the length of time it takes for customers to pay their invoices.
We are a bulk haulage business based in New Zealand. We primarily transport aggregate and fill for large infrastructure companies as well as smaller corporate clients.
Generally, the main issues that arose for our business were due to scheduling. We have clients that are very last minute with their needs, while others are more organised – this means we run into cash flow issues when we need to pay our drivers or fuel suppliers but are waiting on the payment of our own invoices. We also had some opportunities on the table to grow our business, but we were unable to act on them due to cash flow instability as well as not wanting to get into further debt.
Since we began using Apricity Invoice Finance our revenue has doubled. We have been able to take advantage of larger opportunities without having to worry about how we would pay for the additional costs, in particular, employees and equipment. We now have a funding solution with flexibility and quick turnarounds - as well as having no requirement for extra security (as asked for by our bank).
We have a great relationship with both the head office in Australia and the office in Auckland, working with them is a smooth process - really a piece of cake.