Conveyor Maintenance Company

Situation

Started in 2010, this early stage company specializes in conveyor service, maintenance and installation throughout the southeast. With over 40 years of collective experience in the industry, the management team has rapidly grown the company in a very short time.  Despite the immediate revenue growth, the company had yet to report a profit due to significant start-up costs and capital expenditures.  Although the company was projecting to double revenues for the second consecutive year, their Commercial Lender was unable to approve them for a Working Capital Line of Credit to facilitate the growth.

Solution

In order to provide the customer with an alternative Cash Flow Solution, the company’s banker referred them to Magnolia Financial.  With significant profits projected for 2012 and a strong customer base, the company’s future was bright.  Magnolia extended the company a $100,000 Accounts Receivable Line of Credit to support the company’s growth plan.  The additional working capital provided by Magnolia Financial helps the company cover increased payroll associated with new contracts.  The company is also now free to market their business to new customers knowing that Magnolia has committed to increase their Line of Credit as their Accounts Receivable increase.

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