Transforming Freight Factoring with Blockchain: A New Solution for Truckers

Hi everyone,

I’ve been a longtime lurker here and have had my share of shitcoins and altcoins that I’ve followed and tried to talk about in the past (all of which are now cringeworthy looking back at it). But I’ve taken it upon myself (along with a few others I’ve met in this space) to tie what I have a passion for (blockchain) to the field I work in real life (logistics/finance).

We are starting a business that will utilize blockchain technology to ameliorate the freight factoring service currently offered and used by a large portion of owner-operator and small trucking businesses in the United States. I will say that there is NO tokenized asset or any altcoin or shitcoin that we have created for this venture. This is a freight factoring business incorporated in the United States that USES blockchain technology in the backend, and the only asset that is involved within this process is USDC stablecoin. We have put this together in a way that truly promotes the use of blockchain and the advantages it can provide to real-world assets.

A Background to Freight Factoring:

Freight factoring, for those that do not know, is the process in which receivables are purchased in exchange for immediate funding. So imagine yourself a trucker that owns your own truck, and you move a shipment from point A to point B for a broker. Once completed, you would bill the broker and they would pay you based on NET30 day terms. But for many truckers, cash flow is tight and you need funds sooner, so you sell that receivable to a freight factoring provider who provides you with immediate cash for a fee based on that invoice value. The trucker receives quick funding, the broker pays the invoice as usual, and the factoring company makes some profit – everyone is happy in a perfect world.

The World is Not Perfect for Truckers – The Current Issues:

These services are usually not as straightforward as they seem, as truckers usually face issues of hidden fees, complex binding contracts, and delayed funding from providers. All this after truckers think that the advertised factoring rate is all they will endure.

Picture this: how often do you turn on the TV and come across a commercial for a brand-new car showing off all it has to offer? You’re told of this amazing monthly rate which catches your eye as a consumer – ignoring the essay of words that flash by on the bottom of the screen in text so small even pausing couldn’t help you read it. Then once you walk into the dealership, you soon find out that the rate does not include a cash down payment, nor does it include the higher-end model shown in the commercial. Then you have to apply taxes as well as the standard lease rate based on your term. Everything becomes an added cost down to the $5.99 air freshener which, if you’re lucky, they will throw in free of charge to make you feel better. Before you know it, you signed onto an 84-month finance plan for a car that’s twice the price advertised on TV.

This is exactly how the current market of freight factoring businesses operates. Some may promise and certify no added fees or quick payment terms, but there is ALWAYS a catch for many who use the service, especially those who need it most.

How Our Blockchain Solution Solves This:

Our platform offers a transparent and fixed rate structure with no hidden fees and provides a no-contract, no-recourse solution. Thanks to blockchain technology, truckers can receive immediate funding at any time, with all transactions recorded on a distributed ledger, guaranteeing full transparency and accountability – something most factoring companies keep secret. A factoring company can advise that THEY don’t charge additional fees and can process same-day payments, but that does not mean your bank will, and this is where blockchain will save truckers both dollars and time.

As mentioned before, we will perform all this using USDC stablecoin, which provides a stable and liquid option for truckers, similar to USD, effectively eliminating the volatility associated with other cryptocurrencies.

Our Mobile Application

Why We Are Excited:

We believe that we are on the cusp of introducing something special to the market that truly benefits the front-end users of a crucial RWA for the economy within the United States. We are not forcing them to buy into anything, we are not forcing them to learn about crypto and blockchain – the benefits of blockchain are all in the backend. The successful implementation of what we are bringing forth can put a positive light on blockchain technologies and their RWA capabilities. There are no dogs, cats, or monkeys with hats; it is the beneficial aspects of the technology to help ameliorate a process that has been the same for decades with providers that cage their front-end users with fees, terms, and contracts that actually hurt the front-end user.

Why Post All This Here on Reddit?

As I said at the beginning, I’ve been a longtime lurker here and without trying to shill the product (I mean we don’t even have a tokenized asset to shill), I felt like I finally have something worthy of talking about here that truly promotes the use of what we all have such a big passion for. And for those wondering about this whole concept and may have reservations on it, we have been conducting research for over a year on the industry, the front-end users, the feasibility of our solution, and long-term financial projections. We have core team members who work directly with truckers who actually endure the hardships of current factoring providers and already have several who are willing to participate in our pilot program launching later this year. Our MVP is just about completed and we look forward to actually putting this into motion and seeing the fruits of our labor help put blockchain in a positive light.