UPS Capital offers small businesses new global trade finance solution (U.S)
UPS Capital, the financial services arm of UPS, is offering a new service – UPS Capital Cargo FinanceSM – enables small U.S. importers to use their in-transit UPS shipments as collateral for loans, reducing the need to rely on paper-intensive letters of credit to finance international trade transactions.
UPS Capital Cargo Finance is designed for U.S. companies with annual revenues up to USD 50 million that import 1-to-10 ocean or air freight containers of goods per month.
Most global trade transactions for small companies are financed via letters of credit or cash in advance, with trading on open account terms typically available only to large companies. While effective, letters of credit are time-intensive and costly. Cash-in-advance transactions can strain cash flow for small companies. Additionally, traditional financial service companies may be hesitant to lend against goods that are in-transit or housed in a foreign location, leaving few options for small businesses that want to participate in global trade.
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