US Bank is offering a new product to enable shippers to extend financing terms, so as to more easily extend their days payable outstanding, without delaying payment to the shipping lines.
US Bank, a large vendor of automated freight payment, automates the scheduling of payments and delivers transparency that promotes accurate accrual and better forecasting of freight spend.
The bank said the new extended-term financing would allow shippers and carriers to better manage their working capital without renegotiating contracts, American Shipper reported.
"Transportation is a cash-intensive business that demands timely payment," said US Bank freight payment director Rick Erickson.
"With extended-term financing from US Bank, shippers can defer payment for 30, 60, or even 90 days, making their cash on hand go further, dramatically increasing the value of their freight spend, and giving them greater flexibility," he said.
"To the carriers, the change is invisible; they will continue to enjoy accelerated payment. This combination of extension and acceleration benefits everyone," Mr Erickson said.
The majority of respondents to the 2014 Transportation Payment Benchmark Study (due out later this year) said they will seek to extend payment terms this year.
WORLD SHIPPING
24 April 2014 - 20:54
US Bank to extend financing term to shippers, no payment delay
US Bank is offering a new product to enable shippers to extend financing terms, so as to more easily extend their days payable outstanding, without delaying payment to the shipping lines.
WORLD SHIPPING
24 April 2014 - 20:54
US Bank to extend financing term to shippers, no payment delay
This news 5442 hits received.
These news may also interest you