UPS Capital Announces UPS Capital Cargo Finance service Enhancements for Small and Mid-sized Businesses
January 16 2018 - 09:00AM
- Credit lines up to $1.5 million on in-transit goods
- Longer repayment terms up to 90 days from 75 days
- Unsecured credit lines
- Working capital available to support growth opportunities
UPS Capital, a subsidiary of UPS® (NYSE:UPS), today
announced expansion of the UPS Capital Cargo Finance®
service with new options on in-transit cargo for U.S.
importers.
The enhanced offering increases the amount a business can borrow
from 70% of the supplier’s commercial invoice to 100%. Other
enhancements include:
- Repayment terms up to 90 days rather than 75 days
- An unsecured credit line that won’t interfere with existing
banking relationships
- More competitive interest rates for eligible companies shipping
with UPS
“These enhancements effectively increase liquidity to support
the growth of small and mid-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
businesses.”
A key business need
This solution offers significant help for importers who rely on
a strong cash flow to stay in business. According to a U.S. Bank
study, 82% of businesses fail due to poor cash flow.1 Local banks
generally don’t offer credit lines on in-transit inventory, 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
substantial resources tied-up inside ocean-going vessels or other
slower modes of transport.
“UPS Capital’s cargo financing solution is a creative way to
virtually eliminate the risk of paying a supplier before the goods
are sold,” said Robinson. “Now our customers can order more
supplies, more effectively manage their payable obligations and
handle more inventory without hesitation while goods are in motion.
Our customers have been asking for this additional solution to
augment our other insurance and financing products for small and
medium size companies.”
How it works
The UPS Capital Cargo Finance service can provide unsecured
credit lines from $300,000 to $1.5 million to pre-approved
borrowers. After UPS Capital confirms the supplier invoice and the
shipment has left the point of origin, funds are disbursed to the
U.S. importer, UPS Capital’s customer. These businesses are then
able to use the funds to purchase more inventory, pay suppliers
earlier at better terms and to invest in their business.
“The financial success of a business is largely attributed to
its ability to manage its working capital needs, said UPS Capital
Payment Solutions Product Manager Jose Aguayo. “Our UPS Capital
Cargo Finance service is a great tool to creatively raise
cash.”
For more information about 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 Needs
to be Well Aware of.” Fundera Ledger, 7/19/2017.
https://www.fundera.com/blog/small-business-statistics
About UPS Capital
Nobody understands transportation and logistics like UPS. And
while you’ve probably never thought of a UPS company for financing
and insurance services, the global supply chain expertise of UPS
Capital uniquely positions us to help protect companies from risk
and leverage cash in their supply chains. Insurance companies and
banks can’t say that. UPS Capital and its affiliates have offices
throughout 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 pursuant to a Department of
Business Oversight Finance Lenders License. Products may not
be available in all areas and may be modified based on
requirements. Check with your UPS Capital representative for
local availability. Credit availability is subject to
approval. UPS Capital insurance products are underwritten by an
authorized insurance company and issued through 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 trademarks of LinkedIn Corporation and its
affiliates 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.
Kristin DeBates
404-828-4032
kdebates@ups.com
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