Business Capital delivers $500,000 working line of credit to transportation services company.
The client, a transportation services business, is a subsidiary of a larger industrial machinery manufacturing company, primarily in the business of metal fabrication and powder coating from the engineering and design stage through the finished product for projects of all sizes. Based in Arizona, the client provides trucking and cargo delivery services.
The parent company remained profitable but struggled after the economic crises and the transportation services subsidiary was in need of more working capital to continue to operate. The owner did not want to further leverage the assets of the manufacturing facility and other real estate, but the current lender was unable to provide an asset based line of credit.
Business Capital developed an understanding of the client’s situation and was able to quickly deliver a line of credit to maximize working capital and liquidity. The client’s short term needs were addressed by leveraging A/R and avoiding the pledge of additional collateral or a personal guarantee. This solution will allow the transportation services business to continue to operate and increase the health of the company as a whole, setting them up to continue increasing profitability and growth.