Cash is the fuel that drives business, and many financial analysts consider the condition of a company's cash flow to be one of the most important indicators of a business's financial health. Unfortunately, companies facing cash flow crunches simply throw money at the problem, which is a temporary solution at best. But cash flow management requires more than just a financial fix. It requires a holistic approach that determines the root causes of the problem itself. In fact, a cash flow crisis may be an indication of a broader supply chain problem. As such, fixing a cash flow weakness requires companies to examine and improve the three key flows of commerce - goods, information, and funds. It requires the attention of not only the CFO but also the logistics manager, purchasing, and operations.

Whether a company is experiencing rapid growth, seasonal spikes, non-payment or slow payment from customers, UPS and UPS Capital, the financial services arm of UPS, can help businesses address the critical issue of cash flow management by:

• Following The Goods - UPS already is a world leader in the movement of goods, delivering 14.1 million packages and documents a day around the globe - not including the cargo and freight managed by UPS Supply Chain Solutions. Cargo Insurance1, offered through UPS Capital Insurance Agency, Inc. protects shipments against loss or damage from the time they leave a customer's facility until they are delivered. It is designed for companies that buy or sell goods, regardless of transportation mode.
• Using The Information - With one of the world's most sophisticated information technology networks, UPS is a leader in managing and transmitting information about the very goods it moves. Using the information about the shipment's status and delivery time enables sellers to put invoices into the hands of buyers as soon as possible. One way to use this information is through UPS's Expense Management Solution which combines UPS CampusShip® with UPS Flat File Bill. This solution results in cost savings for shipping tasks and the ability to easily reconcile a bill to a department or client referece code in UPS CampusShip. In addition, UPS Quantum ViewSM Notify e-mails package status providing greater shipment visibility and ability to offer greater customer service.
• Accelerating The Funds - UPS Capital² entities provide a range of traditional and non-traditional services that help businesses enhance cash flow. For example:
• UPS Collect on Delivery
  (C.O.D.)EnhancementServices³ streamline the traditional C.O.D. process and deliver cost savings and processing efficiencies that improve cash flow through the expedited electronic transfer of funds. The program facilitates the deposit of funds automatically into a bank account, generally within two or three days after UPS package delivery, saving the business time and expense of processing each individual C.O.D. check.
• Credit Insurance¹, offered through UPS Capital Insurance Agency, Inc. guards a company against non-payment, or even slow payment, of invoices.
• Commercial term loans are normally made to qualified customers against standard collateral such as accounts receivable, inventories, and fixed assets. Such loans can be done by UPS Capital Business Credit through the government-guaranteed programs of the U.S. Small Business Administration and the U.S. Department of Agriculture.
• Commercial mortgage loans, available through UPS Capital Business Credit, are designed for qualified customers who wish to upgrade, expand, refinance, or purchase owner-occupied facilities.
• Revolving lines of credit make a specified amount of money available to a borrower based on eligible accounts receivable and inventory. Because the credit line is revolving, the borrower has the ability to repay and re-borrow as needed.
• Asset-based loans provide working capital by leveraging the assets of a company. The loans are designed as secured, revolving lines of credit, and advances are based on a percentage of a company's accounts receivable and inventories. An advantage of this type of lending is that it does not lock a customer into either a fixed loan or payment amount.
• And offered by UPS, UPS Exchange Collect is a fast, secure, simple payment alternative for financial settlement of international trade. This service minimizes the dependency, cost, and complexity involved with letters of credit, documentary collections or third party service by accelerating cash flow while assuring that payment is made before delivery for customers that pay slowly or not at all.

The UPS Capital Visa® Platinum Business Card⁴ offers small businesses flexible lines of credit for working capital, discount rewards on UPS services, and separates business and personal expenses for accounting and tax purposes.

¹Insurance programs are offered through UPS Capital Insurance Agency, Inc. and through the following licensed agency affiliates: UPS Capital Insurance Agency, Inc. of California in California, UPS Capital Insurance Agency, Inc. of Massachusetts in Massachusetts and UPS Capital Insurance Agency, Inc. of Nevada in Nevada and Louisiana . UPS Capital Insurance Agency, Inc. reserves the right to change or cancel insurance programs at any time. Insurance programs are governed by the terms, conditions, limitations and exclusions set forth in the applicable insurance policy issued by the respective insurance carrier. The above information does not in any way alter, supplement, or amend the provisions of the applicable insurance policy and is intended only as a brief summary of the program. The insurance programs described herein are not available in all jurisdictions.

²UPS Capital loans are made in California pursuant a Department of Corporations California Finance Lenders License. Government guaranteed loans are offered through UPS Capital Business Credit, a subsidiary of UPS Capital Corporation. UPS Capital Corporation is neither an agent for, nor associate of, UPS Capital Business Credit for the purposes of originating, processing, underwriting or servicing government guaranteed loans (e.g., SBA, USDA or Ex-Im guaranteed loans). Products may not be available in all areas and may be modified based on requirements. Check with your UPS Capital or UPS Capital Business Credit representative for local availability. Credit availability is subject to approval.

³C.O.D. Automatic and C.O.D. Secure ("C.O.D. Enhancement Services") are offered through UPS Capital Trade Protection Services, Inc. UPS Capital Corporation and its affiliates reserve the right to change or cancel the C.O.D. Enhancement Services program at any time. The C.O.D. Enhancement Services programs are governed by the terms and conditions of the contract and certain limitations and exclusions apply. The information contained in this letter does not in any way alter, supplement, or amend the provisions of the applicable contract and is intended only as a brief summary of the program. The UPS C.O.D. charge as set forth in the UPS rates in effect at the time of shipping apply to each UPS C.O.D. package shipped. C.O.D. Enhancement Services products may not be available in all jurisdictions.

⁴The UPS Capital Visa ® Platinum Business Card is offered and issued by Chase Bank USA, N.A. ("Chase") and is subject to Chase's terms and conditions. All cards are subject to underwriting and credit approval by Chase. The terms and conditions of any card are subject to Chase's Cardmember Agreement. The UPS Capital Visa® Platinum Business Card is available only in the U.S.

For more information, contact

Laurie Mallis
UPS
404-828-7183