Varengold Bank partners with FinTech and logistics payment service JITpay™

Varengold Bank AG and the JITpay™ Group have entered into a partnership for the refinancing of the receivables portfolio of the FinTech and logistics payment service from Braunschweig. The initial transaction volume amounts to a mid double-digit million amount. For JITpay™, this further refinancing opportunity represents a new milestone in the still young company history.

(Braunschweig/Hamburg) Through the individually created securitization structure, JITpay™ is able to sell receivable packages in a “true sale” process to a specially designated purpose vehicle on a revolving basis. The focus for all parties involved was on establishing simple and automated workflows that even allow for daily interaction in an efficient manner.

Varengold thus refinances large parts of the receivables portfolio of the logistics factoring division of the JITpay™ Group. This primarily includes small-scale spot market receivables from transport services, which are settled and pre-financed via the JITpay™ platform or through the integration of JITpay™ with cooperation partners, such as Europe’s leading freight and cargo space exchange TIMOCOM.

Liquidity is a challenge for logistics service providers

Securing sufficient liquidity is a major challenge for freight forwarding and logistics companies with long payment terms of more than 60 days. Therefore, payment processing and financing functions in logistics are increasingly playing a key role, and smaller transport companies are increasingly struggling with liquidity bottlenecks. “We support JITpay™ in securing the cash flow of their partners,” says Frank Otten, board member of Varengold Bank. “The logistics sector has great potential. In the future, we want to support more technology-oriented and well-structured companies like JITpay™ in growing quickly.” As a partner of FinTechs, Varengold develops individual products tailored to their business models and helps them finance their credit portfolios.

For JITpay™, this further refinancing opportunity represents a new milestone in the still young company history. “With this SPV structure, we have created another refinancing option that allows us to achieve even more dynamic growth while preserving our balance sheet. Thanks to Varengold Bank’s understanding of scalable business models, we were able to find a tailored solution together to create the conditions for achieving our ambitious goals,” says Dennis Wallenda, managing director of JITpay Financial GmbH.

Photo: © JITpay