A Mountain West based third-party logistics (3PL) provider offers a full range of warehousing and distribution services, including general and food-grade storage, e-commerce fulfillment, inventory management, and transportation coordination. The company has built a strong reputation supporting businesses with scalable logistics solutions and has experienced consistent growth with rising demand for outsourced supply chain services.
Financing Solution: Factoring
Initial Amount: $1,000,000
Location: Mountain West
Industry: Logisitics
Following a recent warehouse expansion, the company began experiencing cash flow constraints driven by increased operating expenses. The company needed additional funding for day-to-day operations, including hiring staff and managing the increased overhead.
The company had an existing relationship with a bank that provided both a small revolving line of credit and a term loan. Although the bank valued the relationship and remained supportive, it was unable to increase the revolving line of credit due to internal exposure limits and overall portfolio considerations.
The logistics provider needed to find an alternative financing solution.
A business consultant who worked alongside the bank and the logistics company evaluated the company's financial position and recommended accounts receivable financing to unlock working capital.
The consultant introduced the company to Commercial Funding Inc. (CFI). CFI worked closely with both the company and its bank to structure a one million dollar factoring facility tailored to the company’s needs.
The solution included refinancing the existing revolving line of credit while coordinating with the bank to ensure a smooth transition as the bank retained the term loan. By taking a collaborative approach, CFI preserved the banking relationship while delivering immediate access to additional liquidity. The process was completed quickly, allowing the company to address its cash flow challenges without disrupting operations.
What Set CFI Apart
The solution also offered a unique advantage: it reduced the bank’s exposure while strengthening the overall client relationship, creating a win-win for all parties involved.
With the million dollar factoring facility in place, the company was able to stabilize cash flow and confidently move forward with its expansion.
This enabled the business to:
At the same time, the company preserved its banking relationship, continuing to utilize treasury management services and maintain its term loan.