US Bank Offers Extended Term Financing for Shippers and Carriers
US Bank is offering extended term financing for its freight payment customers and said that it is the first organisation to offer shippers the ability to extend their days payable outstanding (DPO) without delaying payment to their carriers.
As a result, shippers and carriers can better manage their working capital without renegotiating contracts.
“Transportation is a cash-intensive business that demands timely payment,” said Rick Erickson, global director of freight payment solutions at US Bank. “With extended term financing from US 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.”
The Minneapolis, Minnesota-based bank added that as pioneer in automated freight audit and payment, it has the 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,” the bank added.