UPS DELIVERS EXPANDED SERVICES TO SMALL AND MEDIUM BUSINESSES
Provides Solutions Ranging From Financial Services
To Supply Chain Expertise To Package Delivery
ATLANTA, Jan. 7, 2004 - Increasingly, UPS`s small- and medium-size customers are saying, "Show me the money."
Toy e-tailer Toynk.com needed financing for inventory. Bakery café franchisor Atlanta Bread Company wanted to expand and automate production. And high-tech components distributor Falcon Solutions needed help with cash flow.
All three came to realize that UPS (NYSE:UPS) offers solutions beyond package delivery and all three now are relying on UPS Capital, a key part of an expanded UPS capability that includes financial and insurance services, supply chain management and e-commerce support.
"Globalization of the economy helps both large and small businesses expand their markets and lower costs, but it also brings increasing complexity and a need for tremendous coordination," said Kurt Kuehn, UPS senior vice president of worldwide sales and marketing. "UPS is there to help by synchronizing the flow of goods, information and funds. It`s much more than just moving goods."
Enhancing cash flow and accessing working capital are some of the more pressing needs for these businesses and UPS`s financial services subsidiary, UPS Capital, is helping address them as part of an integrated solution. UPS Capital provides a broad array of services from asset-based lending and accelerated payments for UPS`s Collect On Delivery (C.O.D.) service to revolving lines of credit to insurance products from UPS Capital Insurance Agency, Inc.
Additionally, UPS Capital Business Credit specializes in facilitating loans through the government-guaranteed programs of the Small Business Administration, U.S. Department of Agriculture and Export-Import Bank of the U.S.
"Small businesses represent a significant portion of UPS`s customer base, and we support them by providing working capital through government-guaranteed loans along with other services such as small-business credit cards," said UPS Capital President Bob Bernabucci. "Further, by combining financial services with UPS`s expertise in moving goods, we often can help small businesses improve their cash flow and streamline operations."
For Chicago-based Toynk.com, UPS Capital Business Credit is providing a five-year $200,000 loan, supported by a Small Business Administration guarantee, and a one-year $50,000 secured line of credit so the company can purchase more inventory. Additionally, UPS Supply Chain Solutions is providing international transportation management and customs clearance for the new inventory shipped from Asia to the United States via air and ocean. UPS also is providing package delivery and integrating UPS package tracking tools into the Toynk.com Web site.
"This solution has met our needs from every angle, from enhancing our cash flow to more efficiently moving our inventory into our warehouse and then on to our customers," said Steve Loney, Toynk.com`s president. "And it came at the perfect time for us, kicking in for the holiday shopping season, which accounts for 35 percent of our annual sales."
For Atlanta Bread Company, UPS Capital is providing $1.8 million in financing for equipment for the company`s commissary in Atlanta, which serves more than 160 bakery cafés in 24 states. In addition, by selecting UPS for air express and ground package deliveries, Atlanta Bread Company has enjoyed a significant reduction in the time required to process its shipments.
"We have experienced phenomenal growth in the past 10 years and we`re not finished. In 2004, we expect to expand to 200 locations," said Alan Sack, Atlanta Bread Company`s CFO. "To meet these growth plans, we are expanding our commissary production capacity and the lease from UPS Capital is making that possible."
Falcon Solutions, currently ranked as the 8th fastest growing technology firm in America by Entrepreneur magazine, has been a UPS package delivery customer since its founding in January 2001. The Roswell, Ga.-based Falcon now is utilizing UPS Capital`s C.O.D. Automaticsm to accelerate its cash flow. With C.O.D. Automatic, C.O.D. funds generally are available within one to two days after product deliveries are confirmed by UPS. Additionally, UPS Capital has provided a short-term credit facility, while credit insurance provided through UPS Capital Insurance Agency Inc. protects the value of Falcon Solutions` open accounts receivable against default or non-payment.
"UPS offers value, innovation and convenience across the board," said Doug Braun, president of Falcon Solutions. "UPS Capital took the time to understand our business and to build customized financial solutions traditional lenders wouldn`t deliver. They saw the value of our business through the eyes of the transportation relationship."
UPS is the world`s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS`s stock trades on the New York Stock Exchange (UPS), and the company can be found on the Web at UPS.com.
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Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company`s strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company`s Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.
Loans made in California pursuant to a Department of Corporations California Finance Lenders License. Check with your UPS Capital representative for local availability. Credit availability is subject to approval. Products may be modified based on requirements.
Certain C.O.D. Products are offered through UPS Capital Trade Protection Services, Inc.
Insurance products are offered through UPS Capital Insurance Agency, Inc., and through the following licensed agency affiliates: UPS Capital Insurance Agency, Inc. of California in California; UPS Capital Insurance Agency, Inc. of Alabama in Alabama; UPS Capital Insurance Agency, Inc. of Massachusetts in Massachusetts; and UPS Capital Insurance Agency, Inc. of Nevada in Nevada and Louisiana. UPS Capital Insurance Agency, Inc. and its affiliates are companies of UPS Capital Corporation. Insurance programs are governed by the terms, conditions, limitations and exclusions set forth in the applicable insurance policy. Certain insurance coverage is not available in all areas.
Contacts:
Irene Moore
UPS Capital
678-746-6571
imoore@ups-scs.com
Mike Slatin, Fleishman-Hillard
314-982-8661
slatinm@fleishman.com
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