FreightZap decided against outside investments to maintain its independence and control. However, as a rapidly expanding freight brokerage, it was essential for them to have positive cash flow and liquidity to achieve their business goals.
FreightZap was not interested in bank loans due to the onerous terms and high-interest rates. Instead, they chose factoring as their ideal solution.
FreightZap switched from a previous vendor and opted for Denim's flexible factoring solutions. With Denim, FreightZap found a factoring partner aligned with their desire for autonomy and financial efficiency.
Key takeaways from the FreightZap and Denim partnership include:
- 15% Increase in Operational Efficiency: FreightZap achieved a remarkable efficiency improvement, streamlining processes and enhancing decision-making speed.
- Staying Liquid and Growing Without Outside Funding: Denim's flexible financing options have enabled FreightZap to manage cash flow effectively and grow independently.
- Technology Integration and Ongoing Improvements: Denim's commitment to technology and customer support has enhanced FreightZap's operational capabilities and competitiveness.
The Story of FreightZap
In 2023, Roderick joined FreightZap during a period of rapid growth for the brokerage. With 22 years of experience of transportation and supply chain leadership, Roderick leads FreightZap's sales, marketing, strategy, and administration efforts. He joined the company because he believes in its mission to provide the highest quality service.
FreightZap prides itself on focusing intently on geography, market type, and mode specialization. According to Roderick, the company's team of fewer than 15 employees emphasizes operational excellence and aims to be more than just a service provider. They strive to be partners who understand their client's business, values, and goals, serving as advisors and operational executors.
Thanks to this mission, FreightZap has a loyal customer base with no customer churn.
"We are partners strategically, so we have not focused on transactional relationships and value but the deep, strategic, long-term value that will create competitive moats for our employees, customers, carriers, and other trade partners."
The Problem of Rapid Growth
Despite its operational success, FreightZap faced challenges in finding financial solutions tailored to its unique businesses across its service lines which demand responsiveness measured in minutes, compliance and risk management solutions, and ultimately deliver value in making our customer and our customer’s customer better. Ensuring appropriate liquidity as an organization was paramount to FreightZap's growth plan.
"We have not and will not accept investor money as we do not want to sacrifice profits for our purpose, employees, or customers."
Factoring was the answer. However, FreightZap wanted a flexible solution that integrated into their technology stack. FreightZap considers technology essential "given our ability to provide leading compliance, transparency, and information." An integration into their current TMS was crucial.
This gap led them to seek a financial partner that could offer more personalized support and seamlessly integrate into their technology stack.
Their search for a suitable partner led them to Denim, a tech-forward freight factoring company. What stood out about Denim was its ability to offer a more personal touch. "Being a smaller and newer organization themselves, we felt that Denim was hungry and competitive for our business," Roderick notes.
The deciding factor was Denim's integration capabilities with FreightZap's TMS, facilitating seamless data communication and reducing administrative overhead.
The Benefits of Factoring with Denim
The partnership with Denim has brought significant advantages to FreightZap, which is essential for a growing brokerage in a competitive industry. The benefits can be distilled into three key areas:
Improved Operational Efficiency
FreightZap has seen a notable 15% improvement in operational efficiency since integrating Denim's solutions. "The way you've streamlined our processes is remarkable," Roderick notes.
Efficiency is critical for a growing brokerage. Denim's easy-to-use interface and analytics dashboard support FreightZap's fast decision-making. In logistics, decision-making speed can be the difference between securing a deal or missing an opportunity.
The time saved is not just a matter of hours but also of strategic value, allowing FreightZap to focus more on business development and client relationships.
"We've experienced a significant reduction in administrative overhead, and our team can now focus on what truly matters: building and nurturing relationships with customers, carriers, and trade partners and providing exemplary service."
Financial Flexibility to Seize New Opportunities
Maintaining liquidity is vital for a growing business like FreightZap. Denim's flexible financing options have enabled FreightZap to manage its cash flow more effectively, ensuring they have the financial resources to seize new opportunities and invest in growth initiatives.
Unlike bank loans with onerous terms at times, freight factoring with Denim enabled FreightZap to choose which invoices to factor. With next-day funding, FreightZap had the cash to invest as they saw fit.
"It comforts us that we can go outside the box with customers, solutions, and terms and have a financing partner to support execution."
This aspect of Denim's service is essential for FreightZap, as they have chosen to grow without external investor funding, relying instead on their revenue and factoring services like those provided by Denim.
Staying Competitive with Ongoing Technology Improvements
Denim's focus on technology has been a key advantage for FreightZap. "Denim's commitment to embracing, optimizing, and continuously working with us for better technological functionality has been a key differentiator," a FreightZap representative remarks. Their integration with various systems through APIs will give them a significant competitive edge by boosting data accuracy and real-time communication.
Denim's dedication to customer support and ongoing platform improvements has greatly benefited FreightZap.
"Whenever we've encountered challenges or had specific needs, your responsive team has always been there to assist," they note. This support ensures smooth operations and allows FreightZap to focus on its core business.
Overall, Denim's advanced technology and customer service significantly enhance FreightZap's competitiveness in the industry, helping them stay ahead in a dynamic market.
Financial Freedom with Denim Freight Factoring
The partnership with Denim has positively influenced FreightZap's growth and strategic direction. With Denim's backing, FreightZap is well-equipped to pursue innovative strategies and maintain its competitive edge in the freight brokerage market.
"Bigger is not always better. Banks have onerous terms at times, and investors can change your strategy. If you want to control your destiny, factoring with Denim is a great option."
If you're a freight brokerage looking to streamline your operations and manage finances more effectively, schedule a call with Denim today. Receive a demo and learn how our innovative solutions can propel your business forward, just as they have done for FreightZap.
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