PayCargo Capital (PCC) is offering short term loans and credit lines to help its supply chain customers keep the cash flow going as the coronavirus pandemic continues to disrupt business as usual.
A sister company of PayCargo, PCC — also known as PayCargo Finance — has seen escalating demand for its short-term credit facility. Transportation and cargo companies that do business with PayCargo in North America can apply for $25,000 to $2.5 million credit lines with a repayment period of 15 to 30 days.
“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,” Philip Philliou, chief executive officer of PayCargo Capital, told Stat Trade Times on Friday (May 8). “Ocean shipping lines and cargo airlines have enormous amounts of capital tied up in artificial loans to customers.”
Freight forwarders, beneficial cargo owners, importers and other non-vessel operating common carriers (NVOCC) can tap a PCC credit line to pay for daily transportation-related expenses.
PayCargo’s supply chain clients are using the credit facility to cover expenses related to ocean and air freight transportation, cross-border freight, Customs fees, and more. Over 2,000 transportation-related vendors in North America take payments using PayCargo’s online hub.
“Freight costs, along with shipping routes, timetables, and specialized cargo handling are standard ways for shipping lines and airlines to differentiate themselves,” said Philliou in the report. “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.”
“PayCargo Finance clients get the expedited cargo-release benefits of PayCargo while deferring their vendor payments to better manage their cash flow and working capital,” the company said in a blog post.
Florida-headquartered PayCargo was launched in 2008 and has over 4,000 vendors in its network including major ocean carriers like Hapag Lloyd and air cargo providers like Air France,
The global pandemic has disrupted manufacturing and production, with consequences across supply chains worldwide. More people shopping online has added extra pressure on supply chain, shipping and logistics firms.