U.S. Bank announced today the availability of extended term financing for its freight payment customers. The bank is the first organization to offer shippers the ability to extend their days payable outstanding (DPO) without delaying payment to their carriers. This way shippers and carriers can better manage their working capital without renegotiating contracts.
Rick Erickson, global director of Freight Payment Solutions at U.S. Bank describes the value, explaining that “With extended term financing from U.S. 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. To the carriers, the change is invisible; they will continue to enjoy accelerated payment. This combination of extension and acceleration benefits everyone”.
Minneapolis-based U.S. Bank has directed a large focus to their fleet payments and the bank is a pioneer in automated freight audit and payments. U.S. Bank builds on their expertise to make the financing process simple and seamless. The bank automates the scheduling of payments and delivers transparency that promotes accurate accrual and better forecasting of freight spend. These efficiencies are essential, as more shippers seek payment extensions to keep their supply chain healthy.
Erickson described the companies focus as being on “developing tools that support the shipper/carrier relationship and foster an environment of collaboration and efficiency”.
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