Wintrust Receivables Finance closed a new $7.5 million accounts receivable line of credit for a Midwest-based transportation broker that specializes in drayage.
Drayage is the transportation of goods by truck from a seaport, inland port, or intermodal terminal when both destinations are in the same urban area. The client for this deal originally started as a freight agent in 2020 and subsequently transitioned to an independent company with its own Motor Carrier Authority in mid-2021. The company has experienced a significant amount of growth since going independent, with material opportunities for additional growth as the U.S. economy continues to depend heavily on imported goods.
At the time the company was introduced to Wintrust Receivables Finance, it was concerned that its incumbent lender would not have the ability to provide the level of working capital support it would need to execute its 2023 plan and beyond. The new $7.5 million line is more than double what the company’s previous lender was able to provide. In addition to the new line of credit, the Wintrust Receivables Finance team is also providing a suite of treasury management products and services to the client.
“Brokering drayage freight can be more complex than most other modes of transportation. Our client’s attention to detail has allowed them to quickly ramp up their business by providing a higher level of service than their competition,” Jason LeuVoy, group senior vice president at Wintrust Receivables Finance, said. “The WRF team has successfully financed companies across all modes of transportation, and we look forward to providing the financial backing the company needs to achieve their growth goals.”
