UPS Jetair to offer trade finance
UPS Jetair Pvt Ltd — a 60:40 joint venture between United Parcel Service (UPS) and Jetair — is set to introduce an electronic payment facility that promises to simplify financial transactions in international trade.
The trade finance facility called Exchange Collect was developed by UPS — the largest package distribution company in the world. It reduces the risks of dealing with new or unknown customers, and ensures that an exporter receives payment within 10 days of delivery.
Exporters who ship their goods through UPS can avail of the facility. UPS ensures that the goods are delivered only after the importer has disbursed the payment. UPS retains the payment till the importer has received the goods and verified them, thereby ensuring that neither is cheated.
UPS offers the service through an arm called UPS Capital. It was formerly known as First International Bank, and has presence in 14 locations worldwide, including India. But the service has not been launched in India as yet.
“We are looking to launch Exchange Collect in India towards the end of 2003,” said Jeff Fairbairn, chief executive officer of UPS Jetair. The company had already applied for the regulatory approvals, he added.
