Worth over €5.7 trillion, freight is the backbone of world trade and spans sea, road, air & rail. Fast and flexible payments are critical to ensure the smooth running of these global supply chains.
Given the competitive nature of the freight market, payment terms are a differentiating factor between forwarders. In short, forwarders need to extend credit terms in order to win new business and grow their revenues. However, the existing credit solutions available to forwarders are offline and outdated.
From rising freight rates, lower capacity and people management, to ensuring other companies’ goods stay safe, we understand the many challenges faced by shipping and distribution businesses.
Recent digitisation and tech-savvy competitors in the shipping industry means it’s more important than ever to enable your customers to access the flexible payment terms they desire regardless of the mode of transport. With Hokodo, you can.
How we help freight forwarders
Access more working capital
Paying the carrier before you’ve received payment from the shipper can put strain on your working capital. Hokodo pays you up front, so you can offer terms without tying up your cash reserves.
Accounting for extra charges
Things can change between the time of booking and fulfilment of a shipment, creating uncertainty for your working capital. We offer credit for any extra fees or unexpected charges, to ease the pressure on your working capital.
Many modern forwarders provide digital interfaces for booking and managing freight, however their payment flows are offline and manual. Hokodo’s trade credit solution aligns with your digital first approach to support a frictionless online payment journey.
Reduce onboarding time
Assessing creditworthiness is one of the biggest blockers faced by growing forwarders who want to onboard new shippers quickly and minimise the time to first booking. Hokodo handles all credit checks and assumes risk, so you can get shippers onboarded faster.
How it works
A shipper visits your platform, searches and books the transportation they require.
Hokodo runs real-time credit eligibility checks and fraud risk assessments on the shipper and extends credit terms.
The time between order and shipment can range from days to months. Flexible credit is offered by Hokodo for any changes in shipping costs that occur in this time.
You fulfil the service and issue your invoice. Then, we pay you up front.
The shipper’s terms begin and, on their payment due date, they pay Hokodo.
"Integrating with Hokodo has allowed us to significantly increase our value proposition to our suppliers on our B2B marketplace, through providing seamless real time credit insurance policies to the users of our platform. Guaranteeing each transaction through an API has proved priceless for Rooser!”
"Hokodo and Graindex have created a unique product that gives farmers the peace of mind that they will be paid when selling their crops...Our experience working with the Hokodo team has been excellent - we can now offer our Guaranteed Payment Collection service through access to their innovative technology.”
"Hokodo is a massive part of our proposition in being able to ensure suppliers receive payments on time and build trust on the platform. YardLink is on a big growth trajectory and we see Hokodo as not just ready for us right now, but that it will continue to work for us as we move forward.”
"A great User Experience and great payment terms and flexibility are the two main benefits our customers are looking for, and thanks to Hokodo we are able to offer them that…They have helped us to grow a base of extremely loyal customers all across Europe thanks to payment terms."
“We see Hokodo’s Buy Now, Pay Later solution as one of the key enablers for growth in our B2B marketplace. Post-COVID, payment terms for restaurants have been tightened, so being able to offer credit is a huge value add for Katoo and all the businesses transacting on our platform.”
Want to find out more about how Hokodo can help you to free up working capital and grow your business?
Bring your forwarding business into the 21st century with a trade credit solution built for online freight transactions.