PayCargo Capital sets short-term credit facility in North America
PayCargo Capital, a sister company of online payment platform PayCargo, has seen a rise in demand for its short-term credit facility during the Covid-19 pandemic. Transportation companies and cargo owners who are customers of PayCargo in North America can apply for credit of between USD 25,000 to USD 2,500,000 for a 15 to 30-day period.
“The relevancy of PayCargo Capital has grown since the start of the Covid-19 pandemic, as managing cash flow and paying for daily transportation and related invoices can prove difficult,” said Philip Philliou, chief executive officer of PayCargo Capital. "Ocean shipping lines and cargo airlines have enormous amounts of capital tied up in artificial loans to customers.”
The credit facility is being used by PayCargo customers from across the supply chain, to pay for ocean, airfreight, cross border freight, warehouse and Customs fees, and other transportation-related expenses.
More than 2,000 transportation-related Vendors in North America accept payments via PayCargo’s online portal.
“Freight costs, along with shipping routes, timetables, and specialized cargo handling are standard ways for shipping lines and airlines to differentiate themselves,” said Philliou. “Extending credit to customers has also been a common practice for transportation companies. The extension of credit by the ocean shipping lines and airlines is often misunderstood and fraught with issues and costs.”
Under the facility, PayCargo Capital pays all freight charges up front, reclaiming the appropriate funds electronically from the PayCargo customer in the agreed timeframe.
PayCargo Capital customers receive all the expedited cargo-release benefits of PayCargo, while deferring their Vendor payments to better manage their cash flow and working capital.