[Stay on top of transportation news: .]
UPS to Make Capital Loans Available to Importers
UPS Inc. said it will make more loans available to small U.S. importers by using in-transit goods as collateral, helping companies speed up and expand shipments.
The company’s UPS Capital unit will advance U.S. borrowers half the cost of the freight, Bloomberg said. The loans must typically be repaid within 60 days, UPS said in a statement.
The program, dubbed UPS Capital Cargo Finance, provides an rnative to paying cash up front or using letters of credit, which can be time consuming and expensive, UPS said.
The service is designed for companies with annual sales of $50 million or less and comes amid tight credit conditions for many businesses.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.