On September 9th, the company is launching a new program for small businesses called Cargo Finance. Basically, UPS customers will be able to borrow up to $100,000 to use as working capital. According to a BusinessWeek article:
“One of its trial customers is Pedors, a $2 million Marietta (Ga.)
importer of orthopedic shoes. Along with shipping Pedors products from
Chinese factories to U.S. warehouses, UPS pays the Chinese supplier up
front for the goods. Pedors wires UPS half the cost of the shipment
once the shoes leave China and has 60 days to pay the balance, with
interest. Pedors Chief Executive John O’Hare says working with UPS has
helped his firm expand its product line. “This service cuts out all the
middlemen in international trade,” he says. Prior to the UPS deal,
O’Hare relied on a bank credit line secured by his personal assets.
With UPS, the collateral is the shipment itself.”
This is a great opportunity for small business importers or exporters! And now that the value of the dollar is relatively low, US goods are less expensive to some foreign markets, such as those in Europe.
