UPS Captial Overview

UPS Capital®

Overview

Fall 2009

2UPS Capital®

UPS: A Single Source

Financial Services

Specialized Mail Services

Consulting Services

Package Delivery

Comprehensive Logisticsand Distribution Services

Transportation and Global Freight Services

3UPS Capital®

UPS Capital Overview

• Founded in 1998 as a financial services subsidiary of UPS

• Staff of over 300 professionals

• Offices throughout the U.S. as well as Hong Kong, Taiwan and the United Kingdom

• UPS Capital develops financial solutions and introduces additional UPS resources that enable companies to operate more effectively.

4UPS Capital®

UPS Capital Solutions – Improving Cash Flow

SOLUTIONS

• C.O.D. Enhancement Services

• UPS Capital VISA® Business Rewards Card

• Merchant Services

UPS Capital offers a range of solutions that improve cash flow.

What truly differentiates UPS Capital is our ability to combine our financial products with other services within the UPS enterprise.

5UPS Capital®

C.O.D. Enhancement ServicesImproving Cash Flow

C.O.D. Enhancement Services accelerate your payments with a choice of options that can help your bottom line.

• C.O.D. AutomaticSM: Receive C.O.D. payments within three business days of package delivery. Funds are electronically transferred directly to your designated bank account.

• C.O.D. Secure®: Offers all of the benefits of C.O.D. Automatic, plus coverage for returned (NSF) C.O.D. checks up to a pre-determined limit.

C.O.D. Enhancement Services products are offered through UPS Capital Trade Protection Services, Inc. UPS Capital Corporation and its affiliates reserve the right to change or cancel the C.O.D. Enhancement Services program at any time. The C.O.D. Enhancement Services program is governed by the terms and conditions of the contract and certain limitations and exclusions apply. The UPS C.O.D. charge as set forth in the UPS rates in effect at the time of shipping apply to each UPS C.O.D. package shipped. C.O.D. Enhancement Services products may not be available in all jurisdictions. C.O.D. Secure is a registered trademark, and C.O.D. Automatic is a service mark, of United Parcel Service of America, Inc.

6UPS Capital®

UPS Capital Visa® Business Rewards CardImproving Cash Flow

Benefits

• Earn three points for every eligible $1 spent at UPS, UPS.com and The UPS Store®

• Earn three points for every eligible $1 spent at qualified restaurants, gas stations and office supply locations

• Earn one point for every $1 spent on all other purchases where Visa is accepted

• Redeem points for CASH and/or airline benefits (Redeem 2,500 points for $25 cash)

Features

• No annual fee

• Low introductory APR

• Online account management

• Itemized monthly statements and free quarterly reports online

• Individual cards for employees to control their spending limits

UPS customers can call 866-651-7638 to have their weekly bill automatically charged to their credit card.

The UPS Capital Visa ®Platinum Business Card is offered and issued by Chase Bank USA, N.A. (“Chase”) and is subject to Chase’s terms and conditions. All cards are subject to underwriting and credit approval by Chase. The terms and conditions of any card are subject to Chase’s Cardmember Agreement. The UPS Capital Visa ®Platinum Business Card is available only in the U.S.

7UPS Capital®

Merchant ServicesImproving Cash Flow

UPS Capital has teamed with Chase Paymentech to offer UPS customers the ability to accept credit cards from their customers.

Benefits:

• Comprehensive reporting that includes detailed location-level and corporate-level reporting in daily, weekly or monthly formats

• Expanded payment offerings, such as MasterCard, Visa, American Express, Discover, Diners Club and JCB, are supported

• Stored value cards and gift card programs that help build customer loyalty

• Extensive terminal options that include advanced functions like expanded memory capacity, integrated printers and easy-to-read touch screens

• Superior service, with dependable, top-quality terminal support available 24/7

Target: Mid-sized companies, “e-tailers”

All services in connection with the UPS Capital Merchant Services Program are provided by Chase Paymentech and all fees charged for services are determined by Chase Paymentech. All decisions regarding approval will be made solely by Chase Paymentech under Chase Paymentech’s then current criteria.

8UPS Capital®

UPS Capital Solutions – Managing Trade Risk

SOLUTIONS

• Cargo Insurance

• Credit Insurance

• Flexible Parcel Insurance

• As you seek to enter new markets, expand into new lines of business, or trade internationally, your business is exposed to risk.

• Payment defaults, slow payment of invoices, or mishaps while goods are in transit, leave you vulnerable.

UPS Capital Insurance Agency, Inc., offers solutions to protect your business against the associated risks of trade.

9UPS Capital®

Cargo InsuranceManaging Trade Risk

Cargo Insurance helps you protect the value of goods.

• Helps protect the value of goods in transit from warehouse to warehouse, via air, ocean, rail or road.

• Insures against financial loss for a single shipment or all shipments (comprehensive coverage).

• Covers you even when using multiple carriers or transportation modes.

• Customized programs that cover shipping risk, warehouse risk and contingency coverage to protect the buyer and seller.

• Simple claims process that delivers efficient resolution and settlement

• May also protect against concealed damage, expediting expenses, general average losses, labels and brand issues

Insurance is offered through licensed insurance producers affiliated with UPS Capital Insurance Agency, Inc. and other affiliated insurance agencies. UPS Capital Insurance Agency, Inc. and its licensed affiliates are wholly owned subsidiaries of UPS Capital Corporation. Insurance coverage may not be available in all jurisdictions and is governed by the terms, conditions, limitations and exclusions set forth in the applicable insurance policy.

10UPS Capital®

Credit InsuranceManaging Trade Risk

Protects a seller’s receivables by addressing the risk of non-payment or slow payment. Benefits include:

• Protection for the entire portfolio or top buyer(s)

• Domestic and international coverage

Credit Insurance enables companies to:

• Expand domestic and overseas sales while managing credit risk

• Protect themselves from unforeseen or unpredictable credit risk

• Reduce bad-debt cash reserves

• Strengthen the balance sheet and protect profitability


11UPS Capital®

Flexible Parcel InsuranceManaging Trade Risk

Flexible Parcel Insurance offers added protection.

• Flexible Parcel Insurance goes above and beyond the standard protection offered by UPS and is designed to protect time-sensitive goods and other hard-to-value items in the event of loss, damage or delay.

• Commonly insured items include:– Time-sensitive shipments – Reconstruction of documents, technician fees,

interest on a late payment or repurchase of tickets

– Perishables – Spoilage of food or pharmaceuticals

– Hard-to-value items – Replacement of jewelry, antiques and other priceless items.

• Flexible Parcel Insurance also can provide coverage up to your selling price – not just your cost.


12UPS Capital®

UPS Capital Solutions – Trading Internationally

SOLUTIONS

• UPS Capital Cargo FinanceSM

• Global Asset-based Lending

• Receivables Management

Services

• Equipment Buyer Credit

The financial expertise of UPS Capital combined with UPS’s proficiency in trading internationally makes us unique in the marketplace.

UPS Capital is a financial services provider that understands the complexity of moving goods, crossing borders, and trading internationally.

13UPS Capital®

UPS Capital Cargo FinanceSM

Trading Internationally

Provides inventory financing, on a transactional basis, to customers who are importing goods via UPS Ocean Freight and using UPS Customs Brokerage.

Benefits include:

• Financing of up to 75% of the value of inventory in-transit from “door-to-door” or anywhere along the supply chain

• Borrowers gain additional working capital at favorable rates

• Gain all the strengths of UPS’s technological, operational and financial capabilities

• Better visibility and control of goods in the supply chain through the UPS network.

UPS Capital loans are made in California pursuant a Department of Corporations California Finance Lenders License. Government guaranteed loans are offered through UPS Capital Business Credit, a subsidiary of UPS Capital Corporation. UPS Capital Corporation is neither an agent for, nor associate of, UPS Capital Business Credit for the purposes of originating, processing, underwriting or servicing government guaranteed loans (e.g., SBA or Ex-Im guaranteed loans). Products may not be available in all areas and may be modified based on requirements. Check with your UPS Capital or UPS Capital Business Credit representative for local availability. Credit availability is subject to approval.

14UPS Capital®

Global Asset-based LendingTrading Internationally

Enables companies to borrow against offshore warehoused or in-transit goods as long as they are within the UPS network.

Benefits:

• Ability to monetize foreign inventories and goods in transit

• Access to additional working capital at favorable rates through visibility and control provided by the UPS network

• Improvement of the supply chain through better visibility and control of goods not in physical inventory


15UPS Capital®

Receivables ManagementTrading Internationally

Manages the collections of a company’s A/R and may also accept the credit risk of its buyers.

• Enables supplier to obtain financing earlier in the supply chain.

• Allows supplier to possibly obtain higher advance rates against approved invoices.

• Mitigates buyer credit risk.

• Reduces collection costs


UPS Capital®

UPS Capital Corporation35 Glenlake ParkwayAtlanta, GA 30328

Tracy [email protected] www.upscapital.com

© Copyright 2009 United Parcel Service of America, Inc. UPS, UPS Capital, the UPS brandmark, and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.

UPS Captial Overview

Documents

Transcript of UPS Captial Overview