Forklift Maintenance & Repair

In business since 1990, this company provides maintenance and repair services to the Material Handling Industry.  Due to the economic slowdown, they lost 40% of their customer base due to their reliance on the Construction Industry.  Despite holding loans on the company's facility and various equipment, the company's banker was unable to extend them a Line of Credit.  Despite cutting expenses and reducing staff, losses began to pile-up and started to erode the owners' equity in the business.  Slow customer payments also hurt the company as they sometimes struggled to cover weekly payroll.

Their Business Banker referred the company to Magnolia Financial.  Despite the historical losses, Magnolia was able to extend the company a $150,000 Accounts Receivable Line of Credit.  The additional working capital provided by Magnolia Financial has given the company the Operating Capital it needs to get things turned around.  Meeting weekly payroll is now not a concern as the company draws on their line of credit immediately after generating new invoices.  The company has also used the funds to hire a new salesperson to help expand their territory.  Without Magnolia Financial, the company may not have been able to survive; however, the future is now bright and they are on the road back to profitability.

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