Transportation and logistics
A carrier pays for fuel and drivers this week and settles the freight bill in thirty to sixty days. The fleet on the yard is the answer to both problems.
How the balance sheet reads.
Tractors and trailers have a deep resale market, so lenders advance against them comfortably and quickly.
Freight receivables factor at high advance rates because the debtors are usually creditworthy and the invoices are short dated.
Fuel and insurance are the two costs that move fastest against a fixed rate per mile.
What usually does the work here.
WHERE IT GETS DIFFICULT
- A fleet already financed to the limit leaves nothing to leverage. The refinance conversation comes first.
- Safety and compliance records affect insurance, and insurance affects the whole file.
- Equipment and vehicle financingDriven by asset value, commonly $25,000 to $5,000,000 Finance sized against the asset itself, for machinery, fleet and production systems, including sale and leaseback on equipment you already own.
- Working capital and lines of credit$50,000 to $2,000,000 Revolving credit sized against deposits, receivables and inventory, for the gap between paying suppliers and getting paid.
- Refinancing and debt restructuringMatched to the existing debt, commonly $100,000 to $5,000,000 Consolidating expensive or badly structured facilities into a schedule the business can actually carry.
A transportation and logistics file, read properly.
Tell us the amount and the purpose, and we will say what is realistic in this sector.
No lender hears your name until you say so.
A request emailed to twenty lenders leaves twenty records. The next one to see it reads the declines before they read the deal, and a file that looks shopped is priced as one. So the list is built with you, approved by you in writing, and nothing leaves this office before that.
- Call
- 416-841-8468
- Hours
- Weekdays, Toronto time