UPS Capital, the financial services unit of logistics company UPS, has provided an undisclosed amount of venture debt to Just Cellular, a US-based online mobile phone provider.
A line of credit is provided to Just Cellular using the company’s in-transit inventory as collateral so it can pay its suppliers, which are mainly based in China, more quickly in return for better terms.
Eric Kirkland, chief executive and founder of Just Cellular, said: "Our agreement with UPS Capital is reassuring to our traditional banking partners, who are comfortable knowing that UPS’s visibility and tracking tools are on the other side of this transactional financing."
Just Cellular has integrated the UPS delivery system into its custom-designed enterprise resource planning (ERP) system.