UPS Capital Announces UPS Capital Cargo Finance

ATLANTA, Jan. 16, 2018 (GLOBE NEWSWIRE) —

  • Lines of credit 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 Capitala subsidiary of UPS® (NYSE: UPS), today announced the expansion of UPS Capital Cargo Finance® service with new in-transit freight options for US importers.

The enhanced offer increases the amount a business can borrow from 70% of the supplier’s commercial invoice to 100%. Other improvements include:

  • Refund terms up to 90 days instead of 75 days
  • An unsecured line of credit that will not interfere with existing banking relationships
  • More competitive interest rates for eligible businesses that ship with UPS

“These enhancements effectively increase 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 companies can have more working capital to invest in their business.”

A key business need

This solution offers significant help to importers who rely on strong cash flow to stay in business. According to a study by the American bank, 82% of businesses fail due to a lack of cash.1 Local banks generally do not offer lines of credit on stocks in transit, making it difficult for small importers to find the cash they need. The UPS Capital Cargo Finance service provides a solution that can extend much-needed financial flexibility to businesses that have significant resources tied up inside ocean-going ships 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,” Robinson said. “Now our customers can order more supplies, manage their payment obligations more efficiently, and manage more inventory without hesitation while the goods are in motion. Our customers have requested this additional solution to complement our other insurance and financing products for small and medium 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. Once UPS Capital has confirmed the supplier’s invoice and the shipment has departed origin, funds are released to the US importer, a UPS Capital customer. These businesses can then use the funds to buy more inventory, pay suppliers sooner 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 creative fundraising.”

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, Grechen. “17 Statistics Every Business Owner Should Be Well Aware Of.” Fundera Registry, 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 considered 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 on LinkedIn® https://www.linkedin.com/company/1525/ and Twitter® (@UPSCapital).

Loans are made in California under a Department of Business Oversight Finance lenders license. Products may not be available in all regions and are subject to change 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 producers 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.


        

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