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Deposit & Balance

Staged payment designed for long-haul operations. A deposit provides working capital before the wheels turn. The balance settles when the goods arrive.

Use This Workflow
Working Capital Tool

Operational Costs Accrue Before Revenue Arrives

Deposit and Balance acknowledges a fundamental reality of road freight.

Fuel must be purchased. Tolls must be paid. Drivers must be compensated. Waiting 45 to 60 days for a single payment after delivery creates unnecessary working capital strain, particularly for SMEs that dominate the European road freight sector.

Deposit and Balance solves this by providing upfront capital while maintaining a clear balance settlement tied to completion. Both sides gain something tangible.

Deposit

Covers fuel, tolls, initial driver costs before loading

Balance

Paid upon delivery milestone or completion

Deposit and balance payment workflow

When to Use Deposit & Balance

Designed for operations with significant upfront costs and multi-stage delivery.

Long-Distance Hauls

Cross-EU routes where fuel and toll costs are measurable and significant. The deposit covers operating costs; the balance follows delivery.

Multi-Leg Operations

Complex routes with multiple handling points or value-added services. Staged payment aligns with the operational complexity.

New or Expanding Relationships

Neither party comfortable with full prepayment, but some upfront commitment is necessary to secure the engagement.

Working Capital Needs

Carrier needs capital to cover pre-delivery expenses without resorting to expensive factoring or short-term financing.

How Deposit & Balance Works

A structured, adaptable two-stage payment that matches how road freight operations actually work.

  • Create the payment request

    Select Deposit & Balance as the workflow. Define the deposit amount and balance settlement conditions.

  • Define deposit amount and conditions

    Specify what percentage is the deposit and when the balance is due. For example: 30% deposit, 70% upon delivery. Or 50/50.

  • Send the request by email

    Secure, documented email delivery to the customer with full details of both payment stages.

  • Customer pays the deposit

    Before shipment begins, the deposit is received. This provides the working capital to cover initial operational costs.

  • Shipment proceeds with working capital

    The carrier operates using the deposit to cover fuel, tolls, and driver costs throughout the journey.

  • Balance paid on completion

    Upon delivery (or agreed milestones), the customer pays the remaining balance. The operation is fully settled.

Long haul route Romania Spain Poland
Real Scenario

Long-Haul Route With Significant Operating Costs

A Romanian carrier accepts a load from Spain to Poland, a multi-day journey crossing several EU member states. Fuel costs alone exceed €800, and tolls add several hundred more.

The carrier cannot afford to finance the entire operation while waiting 45 days for payment. Through CargoPay, the carrier requests a 40% deposit upfront from the Spanish broker.

40%

Deposit, covers fuel, tolls, driver

60%

Balance, paid on Poland delivery

0 Days

Financing wait after delivery

Outcome: Carrier maintains cash flow throughout. Broker retains assurance that final payment follows successful delivery.

Working Capital Impact

Why This Matters for European Road Freight

SMEs account for 99% of all businesses in the EU and typically depend on road transport for inventory replenishment and distribution. Cash flow constraints are a persistent operational challenge.

By providing upfront capital, Deposit & Balance reduces the need for expensive factoring arrangements or short-term financing. It enables carriers to operate without financing the shipment on behalf of the customer.

2–5%
Factoring cost
1%
CargoPay transaction fee
Immediate
Working capital

Manage Working Capital on Your Terms

Register with CargoPay and structure every long-haul operation with the working capital flexibility you need.

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