Wintrust Receivables Finance closed a new $15 million accounts receivable line of credit for a Midwest-based third-party logistics firm.
As the domestic freight market weakened over the past year, the company started to generate losses and negative cash flow. This led to multiple covenant violations with its incumbent bank. Despite a 10-plus year relationship with the company, the incumbent bank asked it to find a new lender.
When Wintrust was introduced to the prospective client, the management team had recently made multiple cost-cutting moves that were projected to bring the company back to monthly cash flow break even over the near term. This clear turnaround plan combined with strong opening day liquidity allowed Wintrust to give the company the line of credit it needed.
The new Wintrust line of credit provided an aggressive advance rate and a no financial covenant structure to give the company the access to liquidity and flexibility to execute its plan. In addition to the new line of credit, the Wintrust team is also providing a full suite of treasury management products and services.
“We are excited to add this well-established company to our book of clients in the transportation and logistics space. The management team’s industry experience and attention to detail give us a high level of confidence in the company’s ability to execute their plan,” Jason LeuVoy, national head of originations at Wintrust Business Credit, said. “The WRF team has a long track record of supporting the working capital financing needs of companies in the logistics industry during multiple industry cycles, and we think this transaction will make another excellent addition to our portfolio of transportation and logistics clients.”
