PayCargo Capital has signed a lending deal with Evolve Bank & Trust (Evolve) allowing freight forwarders (FFs) and beneficial cargo owners (BCOs) to apply for and receive credit at the point of paying freight costs.
The partnership will immediately fund the PayCargo Line of Credit, which eliminates financial delays contributing to the on-going supply chain crisis, Paycargo said in a statement.
PayCargo Capital is the exclusive lending partner to users of PayCargo, LLC’s payment platform for vital remittance information between payers and transportation-related vendors. PayCargo has over 67,000 active users remitting and receiving payments.
Qualified FFs, importers, and BCOs in North America who use the PayCargo platform can extend vendor payments by 30 days using credit, the statement added.
“PayCargo Capital offers credit terms on freight charges, previously available to only a few large companies,” says Philip J Philliou, CEO, PayCargo Capital. “Clients tell us that our timely credit solution prevents expensive demurrage charges and speeds goods on their way to their final destination. Both air and ocean freight expenses are higher than in prior years and the need for funding is significant. In today’s environment, with Evolve as our lending partner, PayCargo Capital will grow stronger as a technology-enabled financing provider and help more businesses with their cash flow needs.”
Scott Stafford, President and CEO, Evolve, added: “We are excited to partner with PayCargo Capital to serve the financial needs of the thousands of businesses that are involved in the movement of cargo. With trillions of dollars spent by American companies on air and ocean freight, port fees, warehouse fees, and a myriad of other transportation-related expenses, Evolve is eager to help fund such a large and dynamic space.”