UPS Capital, the financial services arm of UPS has launched four products to help Canadian companies speed the movement of their C.O.D. (Collect On Delivery) payments from U.S. customers, as well as minimize the risks associated with extending credit and shipping cargo.
The four products – C.O.D. Automatic, C.O.D. Secure, Cargo Insurance, and Credit Insurance (insurance products offered through UPS Capital Insurance Agency, Inc. of Canada) – are designed to help Canadian companies capitalize on the benefits of global commerce by better managing their flow of goods, information and funds.
Malis-Henderson Inc., a Montreal maker of bridal veils and headpieces, is one of the first Canadian companies to use C.O.D. Automatic to speed the collection of payments from U.S. customers. For the delivery of products to U.S. customers, Malis-Henderson uses a service from UPS known as Trade Direct Cross Border, which speeds the movement of packages and freight between NAFTA markets by consolidating shipments for customs clearance.
Large portions of Malis-Henderson’s transactions with U.S. customers are completed via C.O.D., meaning a UPS driver collects a cheque from the U.S. customer upon delivery of the goods.
With the traditional C.O.D. process, it could take as many as 30 days for the funds associated with the U.S. customer’s cheque to be available to Malis-Henderson. UPS Capital’s C.O.D. products reduce that time period generally to three or four business days after delivery of the goods.
“Having to wait a month – and sometimes two months – for C.O.D. payments greatly hindered our company’s cash flow,” said Elen Henderson, president of Malis-Henderson. “By streamlining not only the C.O.D. payment process but also my supply chain with UPS, we are now able to better track the movement of our goods to customers and the movement of their funds to us, which eliminates the headaches with the old C.O.D. system and enables us to provide better customer service.”
U.S. companies have been using UPS Capital’s C.O.D. products since 1998. UPS Capital annually processes more than 7 million cheques and US$2.1 billion for U.S. customers through its accelerated C.O.D. payment programs. UPS Capital estimates that the acceleration and processing of C.O.D. payments saves customers’ accounting resources, makes their businesses more productive, and improves their cash flow.
“UPS Capital helps UPS customers synchronize the three flows of global commerce – the flow of goods, information and funds,” UPS Capital Vice-President Business Development Mark Robinson said. “Our mission is to help funds move as seamlessly and efficiently as goods and information move, and we can help companies manage the risks associated with these movements.”
The four products UPS Capital is launching for Canadian companies do just that. For example: With C.O.D. Automatic, funds from C.O.D. payments are automatically deposited in the shipper’s bank account generally within three to four business days after package delivery. C.O.D. Secure includes added protection from liability associated with dishonored cheques. Credit Insurance reduces the risks of carrying accounts receivable by protecting a seller against the threat of a buyer’s default or delinquency, enabling the seller to reduce bad debt reserves and expand into new or foreign markets without assuming undue credit risk. Cargo Insurance protects against the loss or damage of cargo no matter where it moves, who moves it and how it gets there. Cargo Insurance protects goods moved via multiple modes and multiple carriers and even covers shipments transported outside the UPS system.
C.O.D. Automatic and C.O.D. Secure are available to any Canadian company that has a UPS U.S. shipping account number. Credit Insurance and Cargo Insurance, offered through UPS Capital Insurance Agency, Inc. of Canada are available to companies in Quebec and Ontario.
Companies interested in learning more about UPS Capital should contact Patricia Allard at 514-696-8258.