United Parcel Service (UPS) is rolling out its trade finance services with the opening of a Global Trade Finance (GTF) office in Taiwan. GTF is an internationally focused subsidiary of UPS Capital Corporation, formed in 1998 to provide one-stop international trade finance solutions to companies around the world.

The Taiwanese operation - which formally opened for business on 26 April 2001 - becomes the fourth GTF office. The others are located in Hong Kong, the US and the UK. Several export trade receivables and letter of credit (L/C) services are on offer. The export receivables service claims to provide exporters with payment within days of shipping.

One-stop-shop online

Internet document delivery has been a key focus for UPS as it seeks to add value to its offerings in a fight to keep its leading position in an increasingly aggressive battle for worldwide postal business. UPS was privatised in November 1999.

It has been negotiating to purchase logistics companies in Asia and Latin America and in the largest aircraft deal in its history, UPS has agreed to buy 60 airbus cargo aircraft from Airbus.

UPS Capital was conceived in 1998 as an extension to the goods and information mover's existing services and aims to meet the capital and financial needs of its customers. Its services include risk mitigation, including currency, and UPS claims that companies using its integrated services can reduce credit risks and speed cash flow.

Delivery and banking services combined

Executives of the world's largest package carrier have been keen to stress that is not about to become a fully-fledged bank. Nevertheless, in January 2001 UPS announced it had paid $78 million to acquire small business lender First International Bancorp - the parent company of First International Bank - to enhance its trade finance services. This makes UPS the one of only two worldwide carriers with banking interests. The other is Germany's Deutsche Post.

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