News / Rising demand for short-term credit as Covid drives down cash flow

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PayCargo Capital has reported rising demand for short-term credit as the Covid-19 pandemic spread.

Its facility allows carriers, forwarders and shippers in North America to apply for credit of between $25,000 and $2.5m for 15-30 days as a short-term cash flow solution.

“The relevancy of PayCargo Capital has grown since the start of the Covid-19 pandemic, as managing cash flow and paying for daily transport and related invoices can prove difficult,” said CEO Philip Philliou.

“Shipping lines and cargo airlines have enormous amounts of capital tied up in artificial loans to customers,” he added.

PayCargo Capital is a sister company of online payment platform PayCargo and, under the facility, pays freight charges up front, reclaiming the appropriate funds electronically from the PayCargo customer in the agreed timeframe.

It said the credit facility was being used by customers across the supply chain to pay for ocean, air freight, cross border freight, warehouse and Customs fees, and other logistics-related expenses.