Freight hauling company expands the fleet with a $500,000 factoring line

 In Case Study

AR Funding is proud to welcome this transportation company as one of its newest clients.


Industry: Transportation
Location: TN
Company size: ~$1.2 million annual revenue
Reason for applying: Payroll stability and purchasing power
Cash available through factoring: $500,000


PROBLEM: Slow cash flow was cramping growth

This freight hauling company needed a healthy cash flow to cover weekly payroll and service-related expenses, including fuel. Because of this, the company had to impose terms of net 30 or even less on their customers, which limited the amount of business the company could generate. Even with these strict payment terms, the company often struggled to make payroll.

SOLUTION: $500,000 factoring credit line

The company had a good relationship with the bank, but the owner’s outstanding debt meant that he could not qualify for a loan. The banker recommended invoice factoring, and the owner reached out to AR Funding. 

AR Funding was able to provide a factoring credit line of $500,000, which enabled the company to access cash as soon as they invoiced their customers. This meant they could lengthen payment terms, which in turn attracted more customers. The resulting improvements in the company’s cash flow not only solved their payroll challenges, but will enable them to purchase additional trucks to expand the fleet.

This happy client received financing with help from Brian Gullage, Regional VP, Southeast Region. Find out how much cash your company can access through invoice factoring. Talk to us.

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