Friday, September 05, 2008

UPS Loans Money to Small Business!

Wow, tough times call for tough measures, I mean innovative measures.  According to Business Week, UPS is going into the loan business with the launch of Cargo Finance.
I loved this quote:
Cutting fuel costs is one thing; building a finance business is another. UPS's Vukas figures loans will average around $150,000, and he anticipates one or two defaults for every 100 loans issued. "UPS does well with its cash flow, so they have some money they can use [for loans]," says Penn State's Coyle. "But it's a little risky in today's market." UPS has offered such financing to customers over the past decade, but much of the lending was government-backed.
Read the entire article here and sound-off in the comments section.

Just my 15%

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