Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Scroll to top

Turning up capacity for a machine part repair company

Accounts Receivable Line of Credit
Contact Us Today
Repairing machine parts

Situation

Formed almost 20 years ago, this small, family-owned business specializes in electric motor repair and outsourced machine shop services for a variety of local companies. With a strong but small customer base, the company enjoyed a solid reputation for top-notch service at a reasonable price. However, due to cash flow constraints, the company periodically had to turn away new customers. In order to try to grow the company, the owner approached their local bank for a working capital line of credit. Due to limited profits and a deficit net worth from excessive distributions, their bank was unable to approve the request. However, in order to provide an alternative solution, the banker referred the company to Magnolia Financial.

Solution

Instead of focusing on the financial statements, Magnolia understood the value of the company’s customer relationships and the opportunity for growth. Within 24 hours of the initial introduction, Magnolia proposed a $150,000 Accounts Receivable Line of Credit. With the working capital provided by Magnolia Financial, the company added two new shop workers to increase capacity. The owner no longer has to turn away new business and is projecting record profits for the year. Neither would have been possible without the working capital provided by Magnolia Financial

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
View Customer Stories
Talk to a Loan Services expert.
Apply now for a solution that fits your needs, or contact us to speak with an expert directly.
Your company
Tell us your name
How can we contact you?
How much money do you need?
Share:

Explore More Case Studies

Person fabricating steel by welding
Leveraging quality Accounts Receivable for a specialty metal fabricator

Formed in 2017, this small business provides specialty metal fabrication and other welding services to a variety of customers across North and South Carolina.
Flatbed truck carrying construction equipment
Building capacity for operational growth for a construction equipment distributor

Headquartered in South Carolina, this distributor of refurbished construction tools and equipment sells to a variety of customers throughout the United States and Canada.
Grocery aisle with freezers containing frozen foods
Extending the cash flow of a frozen foods distributor

This North Carolina based company sells locally sourced frozen fruits and smoothie kits to a variety of customers across the United States.
Painting white wall gray with roller
Financing the growth of a commercial painting and drywall company

In business for less than one year, this early-stage company provides commercial painting and drywall services for a variety of homebuilders across the southeastern United States.