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Steering a regional trucking company toward financial stability

Accounts Receivable Line of Credit
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Shipping truck driving down highway passing empty field.

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.

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.

– Kerry Coker, Kamado Joe
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