Elavon Freight Payment, a subsidiary of US Bancorp, is expanding its freight-payment trade finance service into Europe. The system will allow freight forwarders to hold onto money longer, accelerate payment to carriers, and offer carriers an alternative to factoring and other financing options used in Europe currently.
Some automotive tier one suppliers are using Elavon Freight Payments, but as of yet, no carmakers. A spokesperson for Elavon told Automotive Logistics that the company is "very interested in opportunities in the automotive industry." Freight companies who ship parts for vehicles are also currently using the system and the spokesperson said the company is also interested in promoting trade finance to these carriers.
Elavon said that the new trade finance tool is the first solution of its kind in Europe, as it provides an automated solution for some of Europe's most labour-intensive freight-payment processing needs. This includes VAT support and consolidated invoice processing, across several different languages. Elavon customers will have better visibility of their global transport spends, and be able to access data in less time.
"As a financial institution, Elavon Freight Payment is uniquely positioned to offer this efficient method of improving cash flow for both shippers and carriers," said Rick Erickson, global director of Freight Payment Solutions at US Bancorp. "We're excited to expand our industry-leading capabilities to a wider range of customers."