Accounts Receivable Line of Credit
Regional Trucking Company
Situation
The owners acquired this regional common carrier trucking company in January 2022 using an SBA Loan. Although the company reported a small profit for the year, cash flow took a major hit as increased fuel prices and labor costs negatively impacted the company. Needing help with working capital, the company approached their local bank for a line of credit but was turned down because they had only owned the business for one year, and all assets were pledged to the SBA Lender.
Solution
With extensive experience financing trucking companies, Magnolia Financial understood the company's challenges and issued a proposal within 48 hours of the initial meeting. Magnolia also negotiated an Accounts Receivable subordination agreement with the SBA Lender in order to quickly close and fund the transaction. Using the additional working capital provided by Magnolia Financial, the company now has the cash flow available to support growth and take supplier discounts by paying early. Neither would have been possible without the Magnolia Financial Accounts Receivable Line of Credit.
What our Clients Say
Kerry Coker, KAMADO JOE
"A Breath of Fresh Air"
"The Magnolia guys have a real ‘can do’ attitude. Marc Smith and his team are super responsive and upbeat. They can fund within a matter of days. They are always looking for positive opportunities for their clients. It's a breath of fresh air to work with someone like that."
Frank Workman, Dealers Supply & Lumber Company
"Available when we needed them"
""Magnolia was really available when we needed them, and the leadership at Magnolia was empathetic to the cold, harsh nature of traditional banking. It gave us a tremendous amount of comfort during a difficult time. Marc Smith and his team really understood where we were, where we were going and gave us the help we needed to get there.""
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