Fr8 Network, a blockchain based logistics technology company, this week announced it entered into a partnership with PayMachine, a provider of enterprise payroll services. The goal of the partnership is to integrate PayMachine’s on-demand payroll services to improve the experience of shippers and truckers operating on Fr8 Network’s marketplace.
Currently, truckers who choose to factor their invoices in the United States, a process whereby the trucker will sell the payment obligation to a 3rd party financier, will expect to lose from 2-5% of the invoice’s value. In exchange, the trucker will be paid in a much shorter time window.
90% of the US trucking market is small owner-operators who suffer cash-flow issues when customers pay 30-90 days after the shipment is complete.
“Most truckers have come to expect that working with digital-first brokerages means they get paid fast. PayMachine helps us take that to the next level and pay truckers immediately upon delivery.”
By using the Fr8 Network Marketplace, trucking companies will be exposed to tools that record the major transactions in a shipment. As designed, receipts of bills of lading, digital proofs of delivery, and real-time IoT data from trucks are available to financiers on the Fr8 Marketplace.
This rich data set allows PayMachine and other financiers to make confident decisions on the likelihood of the invoice being paid on time – or if an exception will occur and delay the settlement.
“Proof of delivery technologies and the transparency of smart contracts within the Fr8 Network provide the assurances required for PayMachine to pay Truckers upon delivery. The Fr8 Network and PayMachine partnership will have an instant impact on the trucking industry.”
