UPS Capital announces UPS Capital Cargo Finance service
ATLANTA, January 16, 2018 (GLOBE NEWSWIRE) –
- Credit lines up to $ 1.5 million on goods in transit
- Longer repayment terms up to 90 days from 75 days
- Unsecured lines of credit
- Working capital available to support growth opportunities
UPS Capital, a subsidiary of UPS® (NYSE: UPS), today announced the expansion of UPS Capital Cargo Finance® service with new options on freight in transit for US importers.
The enhanced offering increases the amount a business can borrow from 70% of the supplier’s commercial invoice to 100%. Other improvements include:
- Refund times up to 90 days instead of 75 days
- An unsecured line of credit that does not interfere with existing banking relationships
- More competitive interest rates for qualifying businesses that ship with UPS
“These improvements are effectively increasing liquidity to support the growth of small and medium-sized businesses,” said Mark Robinson, president of UPS Capital. “They are designed to accelerate cash flow so that companies can have more working capital to invest in their operations. “
A key business need
This solution offers tremendous help to importers who rely on a strong cash flow to stay in business. According to a study by the American bank, 82% of businesses fail due to low cash flow.1 Local banks generally do not offer lines of credit on inventory in transit, making it difficult for small importers to find the cash they need. UPS Capital Cargo Finance service provides a solution that can extend the financial flexibility needed by businesses that have substantial resources tied up inside ocean-going vessels or other slower modes of transportation.
“UPS Capital’s freight finance solution is a creative way to virtually eliminate the risk of paying a supplier before goods are sold,” said Robinson. “Now our customers can order more supplies, manage their payable obligations more efficiently and manage more inventory without hesitation while goods are in motion. Our customers have requested this additional solution to complement our other insurance and financing products for small and medium-sized businesses.
How it works
UPS Capital Cargo Finance can provide unsecured lines of credit from $ 300,000 to $ 1.5 million to pre-approved borrowers. After UPS Capital confirms the supplier’s invoice and the shipment has left the point of origin, the funds are released to the US importer, UPS Capital’s customer. These companies are then able to use the funds to buy more inventory, pay suppliers earlier on better terms, and invest in their business.
“A company’s financial success is largely attributed to its ability to manage its working capital needs,” said Jose Aguayo, UPS Capital Payment Solutions product manager. “Our UPS Capital Cargo Finance service is a great tool for creatively raising funds. “
For more information on the UPS Capital Cargo Finance service, visit https://upscapital.com/product-services/cargo-finance/ or call 877-263-8772.
1 Schmidt, Gretchen. “17 Statistics Every Business Owner Should Know.” »Fundera Ledger, 07/19/2017. https://www.fundera.com/blog/small-business-statistics
About UPS Capital
No one understands transportation and logistics like UPS. And while you’ve probably never thought of a UPS company for financing and insurance services, UPS Capital’s global supply chain expertise uniquely positions us to help protect businesses against risk and leverage liquidity in their supply chains. Insurance companies and banks cannot say that. UPS Capital and its subsidiaries have offices across the United States, as well as operations in Asia, Europe and Latin America. For more information visit www.upscapital.com, call 1-877-242-7930 or follow UPS Capital at Linkedin® https://www.linkedin.com/company/1525/ and Twitter® (@UPSCapital).
The loans are made in California under a finance lender license from the Department of Business Supervision. Products may not be available in all regions and can be changed as needed. Check with your UPS Capital representative for local availability. Credit availability is subject to approval. UPS Capital insurance products are underwritten by a licensed insurance company and issued by licensed insurance companies affiliated with UPS Capital Insurance Agency, Inc. and other affiliated insurance agencies. UPS Capital Insurance Agency, Inc. is a wholly owned subsidiary of UPS Capital Corporation. Insurance coverage is not available in all jurisdictions. LinkedIn is a registered trademark of LinkedIn Corporation and its subsidiaries in the United States and other countries. Twitter is a trademark of Twitter, Inc. in the United States and other countries. Facebook and Instagram are registered trademarks of Facebook, Inc. in the United States and other countries.