Recent trade wars, such as the United States-China trade war, are having a major impact on the global freight factoring landscape. Freight factoring is a financial service by which a company uses its accounts receivable to obtain cash. This is done by selling the accounts receivable to a third-party factoring company, who in turn pays the company a percentage of the invoice value. The factoring company then collects the payment from the customer and retains the rest as its fee.

The trade wars have impacted the global freight factoring landscape in various ways. The tariffs imposed on goods imported from China have caused costs to increase for businesses that rely on this supply chain. This in turn has led to an increase in the cost of accounts receivable, as businesses have to pay more for their goods. This has had a ripple effect on freight factoring companies, as they have to charge higher fees to cover the increased cost of accounts receivable.

In addition, the trade wars have caused freight factoring companies to re-evaluate their strategies and adjust their pricing models accordingly. Due to the higher prices, they have had to develop new ways to increase efficiency, such as:

• Automation
• Other technological solutions

This has enabled them to keep their fees competitive and remain profitable in the face of the increased costs.

The trade wars have also caused freight factoring companies to increase their risk management strategies. This is done by closely examining the accounts receivable and taking proactive steps to ensure that their investments are protected. These measures include:

• Background checks
• Credit checks
• Due diligence on the customers

This helps the companies to identify any potential risks and protect their investments.

The trade wars have had a major impact on the global freight factoring landscape. They have caused prices to increase, forcing freight factoring companies to adjust their strategies and pricing models accordingly. They have also increased their risk management strategies, to ensure their investments are protected. All of this has resulted in increased costs for businesses that rely on freight factoring to finance their operations. It remains to be seen how the trade wars will continue to affect the global freight factoring landscape in the future.