US Bank Freight Payment

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U.S. Bank Freight Payment Extended Term Financing Take your freight audit and payment beyond automated payment processing and make it a strategic addition to your bottom line. Extended Term Financing While extending your days payable outstanding (DPO) can improve your bottom line, carriers are often reluctant to comply with extended payment terms. Their cash intensive business demands timely payment. U.S. Bank Freight Payment allows customers to streamline their freight audit and payment processes while offering unique financing to improve cash flow and flexibility.

Improve your working capital Increase your DPO without jeopardizing carrier relationships or timely deliveries. With Extended Term Financing, your payment terms with U.S. Bank go beyond the standard 30 day term without having to renegotiate carrier terms and contracts. You can choose an additional 15 to 60 days, whatever meets your business’s working capital needs. For example, if you pay $100 million annually in freight costs, consider the value of having access to that money for 60 or 90 days, instead of the typical 30 day payment terms. Assuming a weighted average cost of capital (WACC) of 10%, if you increased your DPO for 90 days, you would see a working capital benefit of more than one million dollars.

Maintain strong carrier relationships Strong carrier relationships help ensure the timely deliveries needed to keep your business moving. Changing payment terms often strain carrier networks and risk costly disruptions. With Extended Term Financing, carriers participating in your freight payment program see no change to their days sales outstanding (DSO) because they continue to receive accelerated payment.

For more information U.S. Bank offers freight and global trade organizations the solutions they need to cut costs and operate more efficiently. Your U.S. Bank Relationship Manager can help you determine what it would mean for your business to extend the financing for your freight payment program. For more information, please contact your Relationship Manager or visit usbpayment.com/freight-payment.

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