UPS Capital expands into Colombia and Peru
UPS has expanded its financial services operations in Latin America in a move set to help promote global trade, particularly with the United States. The company’s UPS Capital division has opened new offices in Bogota, Colombia, and in Lima, Peru, to support exports to two key emerging markets in the region.
The company offers financing loans backed by the US Export-Import Bank for importers to ship items from North America and Western Europe, particularly capital goods and inventory components.
As well as global trade finance, UPS Capital offers trade protection services, customs assistance, credit cards and payment-acceleration services.
UPS Capital has been active in Latin America for more than 10 years, with offices in Argentina, Brazil, Chile and Mexico.
James Fortsch, UPS Capital regional manager, said customers had identified Colombia and Peru as important markets, but one of the key challenges they face was offering attractive financing terms for prospective customers.
Fortsch told Post&Parcel: “We can provide a line of credit to that Colombian or Peruvian importer and that enables the US exporter to be paid when they ship and it enables the importer to repay us on longer terms than would have been available.”
As with other markets, UPS Capital works with export credit agencies and partners like the US Export-Import Bank in order to manage financial risk, but also has staff on the ground to build relationships with customers that have been in business for a while.
The expansion for UPS Capital into Colombia and Peru was a “natural extension” of logistics capabilities UPS already had on the ground in countries with economies growing at around 4.5%, Fortsch said.
While UPS Capital’s financial services were not contingent upon use of UPS logistics, the company’s regional manager said it was an “attractive” option for customers.
“UPS provides best in class logistics services and so certainly it is part of the solution that we can provide importers with not only the financing but getting goods from point A to point B,” he explained.
“Many times the challenges are getting the goods through the customs process and making sure it gets there on time. We look to do a one stop shop solution so we can provide you both the logistics and we can provide the financing to make it happen.”
