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%