Here’s how ‘ship now, pay later’ option works in the shipping industry

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In India, in the international trade sector, private trading companies and shipping companies have seen immense growth and development over the past two decades. The competitiveness in the global shipping market has motivated the traders and service providers to enhance their facilities and offer new services. Today, the leading shipping companies have a lot of schemes and services to offer the traders that would induce them in creating a partnership and make successful freight shipments. Whether it be smart tools like freight calculators or facilities like docking, warehouse storage, loading and unloading, etc., the leading shipping companies are leaving no stone unturned in order to enhance their services. One such addition to the list of these services is the “ship now pay later” option.

The ship now pay later option in the shipping industry works pretty much the same as any other credit facility that is provided in the money market. However, in this case, the procedure is very much simple and hassle-free and the interest rate is extremely low. There are only a few renowned shipping companies in India that are providing this facility including Cogoport, which is also the only company that is providing this facility for a maximum period of 120 days. The following facts would give you a clear and better understanding of how this option actually works in the shipping industry.

How Can You Avail This Option?

First of all you need to visit the website of the shipping company that is providing this facility. If you want to avail the ‘120 days of credit’ facility then you need to visit the website of Cogoport and then follow the following steps. The application process is more or less the same of every company.

  • First, register yourself by providing your basic details like email, phone number etc.
  • Then you will need to complete a simple documentation process and provide the required information.
  • If you are found eligible, your credit request will be processed within 48 hours.

How Does It Work?

The process of “ship now, pay later” is very simple and hassle-free.

  • Once you choose the time period of credit days, your freight shipment will be processed by the concerned shipping company. The company pays all the charges that are involved in the shipping process on behalf of you.
  • You will receive an invoice against your credit amount including the interest rate which is only added if the number of credit days exceeds 30 days. The maximum interest rate that is charged for 120 days of credit is only 1.5% which is very minimal.
  • Once you pay the outstanding amount within the defined time, you will be eligible again for availing this facility. The older your partnership gets with your shipping company, the better services you are entitled to avail.

Is This Option Helpful?

The option “ship now pay later” is the safest, most reliable and extremely convenient type of credit facility. It requires very minimum documentation, no processing fee, no hidden charges and extremely low interest rate. By using this service, you can not only finance your freight shipments but can also manage a healthy cash flow in your business as you do not have to drain all the available cash into one consignment. There are times in the trading business when one might get the offer of multiple consignments and run out of cash to finance the freight charges. This option is extremely helpful in such situations.

The service of credit days is one kind of a blessing for small traders whose businesses are under development as hence, they might not always be able to possess enough cash for freight shipments. Therefore, the “ship now, pay later” option is definitely of great worth and significance.