Facing Financial Roadblocks With Invoice Factoring & ABL
How EBF Helped an Agricultural Transportation Company Overcome Their Challenges.
In the fast-paced world of agricultural transportation, cash flow is critical to keeping operations running smoothly. However, financial setbacks can quickly halt progress, leaving businesses struggling to meet obligations and pursue new opportunities.
This was the case for one of our clients. A transportation company specializing in agricultural shipping faced growing financial challenges that put their business at risk. They reached out to us to help them.
At Express Business Funding, we believe that financial challenges shouldn’t define a company’s future. We provided customized financing solutions that helped the business overcome challenges, stabilize operations, and prepare for long-term growth, such as Invoice Factoring and Asset-Based Lending.
The Challenges
Our client was dealing with multiple financial difficulties that put their business at risk:
🚧 CRA Arrears – The company had amassed tax debt, which was restricting cash flow and limiting access to traditional financing. Under pressure from the Canada Revenue Agency (CRA), they urgently required financial assistance.
🚧 Working Capital Shortage – Without enough cash flow, the company had a hard time paying for daily expenses. This included payroll, fuel, maintenance, and other costs. This directly impacted their ability to service existing contracts.
🚧 Halted Business Growth – The business could not take on new shipments. It also could not expand its client base or invest in needed resources to grow.
With operations halted and few choices from traditional lenders, they sought help from Express Business Funding.
The Solution: A Multi-Faceted Approach to Financial Recovery
To solve the company’s problems, we created a complete financing plan. This plan offered quick help and long-term stability.
✅ Factoring Facility – $750,000
To solve the company’s cash flow problems, we offered a factoring service. This enabled them to secure funds from outstanding invoices. They gained quick access to working capital. This ensured they could pay for important expenses like payroll, fuel, and maintenance.
✅ Revolving Loan – $150,000
To provide additional liquidity, we structured a revolving loan backed by the company’s equipment and real estate. This offered the flexibility needed to manage ongoing expenses and unexpected costs.
✅ Asset-Based Loan – $1.4M
For long-term financial stability and growth, we provided an asset-based loan that unlocked significant working capital. This allowed the company to clear their CRA debts. They could also reinvest in their business to grow.
The Results: A Business Back on Track
With the right financial support, our client quickly improved its operations and financial health.
💡 Resumed Operations – With working capital, the business could restart shipments, fulfill contracts, and keep daily operations running smoothly.
💡 Resolved CRA Arrears – The company resolved its tax issues. This reduced financial stress and improved its credit rating.
💡 Positioned for Growth – With a strong financial base, the business could explore new contracts. It also expanded its client base and improved its position in agricultural transportation.
Why Alternative Financing Matters
This case highlights the vital role that alternative financing plays for businesses facing financial roadblocks. Conventional lenders tend to be risk-averse, often withholding support from businesses encountering financial challenges.
This makes it tough for small and medium-sized enterprises (SMEs) to find the funding they need. Alternative financing options, like those from Express Business Funding, offer help. They provide quick, adaptable, and customized financial assistance precisely when it’s most required.
Final Thoughts: Helping Businesses Thrive
At Express Business Funding, we know that money problems can arise unexpectedly, however, they don’t have to stop you. By offering customized funding solutions, we help businesses overcome challenges, regain stability, and seize new opportunities.
Are you or your clients facing similar financial challenges? Let’s discuss how we can keep your business moving forward.
