Republic Partnered with a Turnaround Consulting Firm to Provide a Receivables Line of Credit to Help Support the Trucking Firm’s Growth
When an Intermodal trucking company needed to refinance its existing line of credit, they sought out Republic Business Credit (“Republic”) to meet their growth needs. Republic provided a 92% advance rate to improve their liquidity and enable the company to remain current on its fuel, tax and payroll needs. Republic partnered with a leading Midwest-based turnaround consulting firm that was hired by a large bank to refinance the line of credit while the bank maintained the treasury management services. In 120 days, the turnaround firm increased its liquidity and improved cashflow. Republic provided a creative and scalable structure to aid in the future growth plans of the client.
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The company provides intermodal and over the road transportation services for railroad, manufacturing and distribution companies located throughout the country. The company provides both in transit rail services and long-distance hauling. So far in 2019, twice as many carriers have failed than in all of 2018 due to decreasing prices and rising supply costs. Insurance payments were responsible for the failure of Denver based HVH Transportation, Inc. according to Transport Topics article in September. Republic was chosen as a partner to provide additional liquidity along with the flexibility for short term over-advances should that type of payment ever be required. Republic’s facility will enable the company to take advantage of growth opportunities as carriers continue to consolidate across the transportation industry.
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Republic provided a $1.5 million Receivables Line of Credit facility with no covenants or cash flow requirements. Republic’s initial funding fully repaid the existing line of credit facility and opened with more than $250k of additional availability. In a short few months since commencing their facility with Republic, the company is on pace to increase their revenue and improve their profitability. Their CEO attributes it to Republic, “As a result of our increased confidence to meet our fuel and payroll obligations, we are able to take care of our team while growing our business.”
“Transportation companies are the lifeblood of America and one of the leading economic indicators. Republic is proud to support entrepreneurs,” said Robert Meyers, President of Republic. “We have several customers that support the supply chains of manufacturing, railway, automotive, energy, furniture and food industries.” According to the Small Business Administration of the U.S. government, small businesses make up 99.7% of the US employer firms. Republic designed its team and products to support smaller and medium-sized companies.
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