UPS Capital Business Credit Extends Loan to Master WorkHolding
UPS Capital Business Credit has facilitated a $750,000 export working capital line of credit for Master WorkHolding, Inc., of Morganton, NC, enabling the company to fulfill purchase orders from its customers.
UPS Capital Business Credit, a subsidiary of UPS Capital Corp., the financial services arm of UPS, facilitated the export working capital line of credit through a guarantee provided by the Export-Import Bank of the United States.
Export working capital lines of credit are guaranteed by the U.S. government and are intended to help drive exports by easing the cash flow constraints of U.S. companies involved in the exporting of goods and services. The credit facility is unique in that it is being used not only to finance orders from international customers but also to finance orders from U.S. customers, which then export the finished goods to their international customers.
Master WorkHolding specializes in the design and manufacture of devices used by manufacturers to hold workpieces in place while they are machined.
“A significant portion of our business comes from U.S. companies that purchase our products, combine our products with their own and then export that package to international buyers,” said Mike Powell, president of Master WorkHolding. “Because nearly all of our products are custom-made, there is a significant investment we have to make to fulfill each customer order. With this line of credit, we will be able to fund those investments for orders that ultimately will be exported to companies in other countries.”
The export working capital line of credit helps UPS and UPS Capital fulfill a goal of expanding U.S. exports.
“There are a number of U.S. manufacturing companies that trade domestically but whose products are used by other U.S. manufacturers in products that are exported,” said Bob Bernabucci, president, UPS Capital. “When this occurs, U.S. manufacturers providing parts, such as Master WorkHolding, may be eligible for a working capital line of credit, which we facilitate in an effort to help drive export volumes.”