Subscribe to our free, weekly email newsletter!


UPS Capital makes further inroads into Latin America

By Jeff Berman, Group News Editor
February 03, 2011

In an effort to expand its presence in Latin America and help facilitate global trade, UPS Capital, the financial services subsidiary of UPS, announced this week it has opened new offices in Bogota, Colombia and Lima, Peru.

Company officials said that with these new offices UPS Capital will be able offer specific kinds of loans to qualified businesses in Colombia and Peru to finance the import of capital goods and inventory components.

UPS Capital’s primary objective is to provide significant benefits to its customers, including helping them to mitigate trade risk, and providing financing solutions for importer/exporter supply chains.

“Many U.S. exporters that we work with identified Colombia and Peru as important trade lanes, and export destinations for their goods and services,” a UPS spokesperson told LM. “These new offices represent a natural extension of UPS extending its presence in these important markets, and are an example of how we help companies compete and grow globally. UPS Capital has been working in Latin America for many years, with watchful consideration as to when export traffic warranted permanent representation.” 

UPS Capital has more than 300 employees. In Latin America and the Caribbean, UPS employs more than 8,000 employees, contractors, and service providers, including more than 400 (employees, contractors, service providers) in Columbia and more than 170 (employees, contractors, service providers) in Peru. UPS Capital also has people on the ground in the United States, Belgium, Canada, China, Hong Kong and Taiwan, as well as in-country representatives in Argentina, Brazil, Chile, Colombia, India, Mexico and Turkey, and it has supported goods imported by companies in more than 40 countries around the world. 

In terms of types of services UPS Capital provides for customers, the spokesperson provided a few different examples.

As one example, the spokesperson cited a foreign medical clinic wanting to purchase new equipment but does not have the liquidity to pay the U.S. manufacturer 100 percent of the acquisition costs. The U.S. manufacturer—or exporter— wants to be paid in full at time of shipment, but the clinic wants to repay the loan over a longer term (or the useful life of the equipment). UPS Capital in this case can provide a loan to the clinic with a term of up to seven years, and UPS Capital will pay the exporter at the time when the equipment is picked up by UPS at the U.S. manufacturer’s dock. The U.S. exporter gets paid quickly, and the foreign clinic can repay the loan over a period of time that best matches their cash flow.

In another example, the spokesperson cited a foreign importer needing ongoing monthly shipments of raw materials to meet sales and production schedules. If the U.S. exporter desires to be paid at time of shipment, UPS Capital can provide the foreign importer with a line of credit to support their purchases of the U.S. exported inventory.

“In both of these examples, these transactions are supported through export credit agencies, such as the Export-Import Bank of the United States, which provides government guarantees on the loans,” explained the spokesperson.

Other services provided by UPS Capital include global trade finance, trade protection services, credit cards and related services and payment-acceleration services.
“By offering Colombian and Peruvian companies greater access to the services and capabilities offered by UPS Capital, we are able to further facilitate trade with the United States,” said Bob Bernabucci, president of UPS Capital., in a statement. “As a key player in global trade, growth in all exports contributes to UPS’s business of serving the logistics needs of our customers.”

For more articles on UPS, please click here.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Panjiva, an online search engine with detailed information on global suppliers and manufacturers, recently said it is opening up the “vault,” so to speak. The vault in this case is making its copious amount of trade data accessible through an Application Programming Interface (API), which enables customers to extract Panjiva’s trade data into their own database.

Freight transportation and logistics services provider Averitt Express recently announced it has rolled out improved transit times for less-than-truckload (LTL) service from the Midwest to Toronto and other cities.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Anne Ferro, a ferocious advocate for greater truck safety and a constant thorn to truck drivers and some unsafe trucking fleets, says she is leaving as administrator of the Federal Motor Carrier Safety Administration. No successor has been immediately named.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Article Topics

News · UPS · Supply Chain Finance · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA