UPS Service Trims Risks in Foreign TransactionsUnited Parcel Service announced yesterday UPS Exchange Collect, a service that it said helps exporters and importers accelerate payments and reduce the risks associated with international trade transactions.
The service is designed for companies that want to expand into new international markets and minimize the risks that can accompany trading with new customers. Basically, UPS coordinates the movement of goods and payment between the buyer and seller using package-tracking data.
On average, sellers receive payments via UPS Exchange Collect in 10 days or less. UPS said payment in some international trade transactions can take up to 90 days on traditional credit terms. In addition, with UPS Exchange Collect the seller can be confident of getting paid because UPS will deliver the goods only after receiving payment from the buyer.
Currently, UPS Exchange Collect is available to companies in 60 origin countries shipping to 18 destination countries, and can accommodate 12 major foreign currencies. To be eligible for UPS Exchange Collect offered on a contract basis, customers must use UPS WorldShip 5.0.