Transportation & Logistics
Regional freight carrier with long-haul and last-mile operations across the Southeast
Case study
$2.1M Liquidity Solution for a Growing Fleet
A working capital facility structured around seasonal cash flow patterns, enabling a 220+ driver fleet to maintain payroll consistency and fund growth without daily debit pressure.
~$14M
Consistent growth trajectory with seasonal volume fluctuations tied to freight demand cycles
$2.1M
Working capital facility supplementing existing factoring arrangement
Ongoing
Facility deployed in 11 days; company has maintained the relationship through continued growth
Cash Flow—Based WC
Payments aligned to revenue cycles rather than fixed daily debits; structured around deposit consistency
$14M ? $19M Revenue
Added 35 drivers, eliminated payroll stress, reduced reliance on emergency factoring draws
Situation
Payroll doesn't wait for freight invoices to clear.
The company operated a growing fleet of 220+ drivers serving regional freight routes across the Southeast. Revenue was strong and increasing, but the transportation industry's payment dynamics created a persistent timing problem: drivers expect weekly paychecks, fuel costs are immediate, but shippers and brokers pay on 30-45 day terms.
An existing factoring arrangement covered roughly 70% of their receivables, providing same-day advances on submitted invoices. But during seasonal compression months — typically Q1 and early Q2 when freight volumes dip — the timing gap between payroll obligations and available collections widened significantly. Weekly payroll ran approximately $280K regardless of volume, while factored advances dropped with fewer invoices to submit.
The company had been relying on emergency factoring draws and short-term merchant cash advances during these compressed months — solutions that carried punitive costs and daily fixed debits that further strained cash flow during already-thin periods.
Structure
Payments that move with revenue, not against it.
We structured a $2.1M working capital facility designed to supplement — not replace — their existing factoring relationship. The facility was underwritten primarily around deposit consistency and historical cash flow patterns rather than requiring additional collateral assignment that would conflict with the factoring company's position.
- Advance structure: $2.1M available working capital with draws permitted based on demonstrated payroll and fuel obligations
- Repayment alignment: Payments structured around weekly revenue deposit patterns rather than fixed daily ACH debits; payment amounts flex with actual collections
- Seasonal accommodation: Facility terms acknowledge Q1/Q2 volume compression with adjusted minimum payment thresholds during historically lower-volume months
- Coexistence: Structured to operate alongside existing factoring without lien conflicts; factoring company acknowledged the arrangement
- Growth mechanism: Facility size reviewable every 6 months based on trailing revenue performance and fleet expansion
Outcome
Growth without the payroll anxiety.
The immediate impact was operational stability. Within the first compressed quarter after deployment, the company made every payroll obligation on time without resorting to emergency factoring draws or high-cost merchant advances. The predictability of payment scheduling — aligned to actual revenue cycles — eliminated the cash management scramble that had consumed management attention every January through March.
With the liquidity constraint removed, the company resumed driver recruitment and onboarding. Over the following 12 months, they added 35 drivers to the fleet, expanded into two additional freight lanes, and grew revenue from approximately $14M to $19M. The facility size was reviewed and increased at the 6-month mark to accommodate the larger payroll base. The company is also now evaluating a revolving line of credit to complement their factoring arrangement long-term.
The company's reliance on emergency factoring draws has dropped to near zero. Their factoring relationship continues to handle day-to-day receivables conversion, while the working capital facility provides the structural cushion that makes week-to-week operations predictable regardless of seasonal volume patterns.
Payroll can't wait for seasonal volumes to normalize. We built a facility that understood their cash flow rhythm.
Related
Transportation & logistics capital solutions
Learn more about how we structure working capital for fleet operators, freight carriers, and logistics companies managing seasonal volume cycles.
View Industry Solutions ?Managing a growing fleet with seasonal pressure?
We'll assess your cash flow timing, factoring arrangement, and payroll obligations to determine whether a facility like this applies.