Freight payments boost working capital through a more collaborative supply chain
Announcing Loop’s partnership with J.P. Morgan Payments.
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5 minutes to read
Today, we’re thrilled to announce our partnership with J.P. Morgan Payments to make compliant financial operations more accessible and profitable for every shipper, carrier, and third-party logistics provider. Legacy payments are late up to 30% of the time according to J.P. Morgan Payments proprietary research. This adds friction, hurts relationships, constrains capital, and incurs late fees.
Loop and J.P. Morgan Payments have teamed up to stop this problem. Their partnership builds stronger relationships between carriers and shippers and boosts working capital for both with a foundation of speed, transparency, and trust.
Paper-based process = trapped capital
Freight payments have been stymied by an opaque, manual system that drives up costs and leaves participants vulnerable to fraudulent activity and friction. Carriers and shippers pay more than they should to conduct transactions, getting in the way of moving goods and money efficiently. The root cause of these problems is paper.
A paper-based system puts stakeholders at higher risk of fraud; more than 40% of b2b payments in the US are still made by check. It’s a threat for businesses as check fraud has surged in the last few years, with FinCen reporting more than 600,000 complaints in 2023.
It’s a significant issue in shipping, where 60% of invoices are paper documents and 80% of invoices are manually keyed into the finance system. Gut-checking invoices, lost receipts, and mistakes from a manual process means transportation invoices and expected costs that rarely match. This locks up capital and drives up costs as it can take up to 50 days to clear a payment, incurring late fees and burdening carriers.
Paper traps data. Paper traps people. Paper traps profit.
Logistics-AI maximizes working capital
Loop’s logistics-AI centralizes supply chain and spend data to eliminate paper and manual processes. So shippers can boost financial and operational performance and efficiency.
The platform’s self-serve analytics enables customers to see every carrier’s charges in aggregate and down to a line item level– unlocking access to premium data that most shippers and LSPs have never had. Loop’s dynamic AI easily adapts to handle new carriers, contracts, data sources, and document formats.
Ingest: Customers send Loop their shipment documents ( bill of ladings, delivery receipts, etc.) and invoices via email or API.
Extract: Loop’s logistics AI then extracts each data point.
Organize: Post extraction, Loop cleans and standardizes the data, linking unique tracking IDs across documents and carriers, and automating general ledger coding.
The result? Customers’ operations evolve to Supply Chain 3.0, with full visibility into financial transactions with automation and insights to optimize company performance.GILLIG’s lack of data meant little visibility into managing transportation spend. Around 30% of invoices were gut-checked, leading to lost time and revenue. Loop helped the team move from Supply Chain 1.0→Supply Chain 3.0, with 100% of invoices automatically audited and paid and complete supply chain and spend analytics that identified 6% in transportation spend savings.
While quick pay options have long been available to the few shippers with flexible balance sheets or those partnered with specialized financial institutions, many shippers lack access to these tools. Industry-standard rates of 3-5% for freight factoring means carriers lose significant revenue. The J.P. Morgan Payments and Loop partnership fills this gap, helping operators run more efficiently and with confidence–driving revenue and cost savings while ensuring carriers receive payments faster. Integrated payables allow shippers to utilize the solution without changing accounts. The partnership offers customers the opportunity to:
Grow Revenues: Underpinning this impactful solution is a market-low financing fee–better rates for trusted partners
Extend Payables: J.P. Morgan Payments’ quick pay solution delivers flexibility: shippers can pick a higher rebate back on the carrier discount and/or extend payment terms–such as turning N30 to N60
Accurate Payments: Loop’s logistics-AI and automation improve speed and transparency, with quick validation that establishes trust.
With Loop 98% of Great Dane’s invoices are now audited and approved with no human touch. Loop audited $5.1M in spend with 100% financial compliance. Now, it takes just 2 hours to process an invoice instead of days. The addition of quick pay to 21% of Great Dane’s FTL payments delivers meaningful margin back on every transaction,“In the age of rising costs and increasing demands on carriers and shippers to do more with less, it’s a competitive advantage to have Loop and J.P. Morgan Payments in our corner.” said Jeff Toman, finance executive at Great Dane.”
Boost your working capital in weeks
Loop was built to help shippers improve financial decisions, eliminate unnecessary costs, and optimize transportation spend, and is used by customers including Great Dane, Loadsmart, and J.P. Morgan Chase. Our best-in-class logistics AI platform enables shipment data centralization, audit and pay automation, and transportation spend intelligence.
Our partnership with J.P Morgan Payments builds on the success of this technology which is dedicated to increasing trust and transparency in the supply chain, with a faster payments option that helps shippers and carriers monetize freight payments and increase their working capital to run their businesses better.
