Solution Spotlight: 
Improve Cash Flow and Operations with Accounts Receivable Financing

Learn how Marquette Transportation Finance can help your business grow.

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Marquette Transportation Finance (MTF) is a full-service accounts receivable lender with an experienced team and transportation industry expertise. Accounts receivable (A/R) financing, an alternative to traditional commercial lending, can help companies grow and manage cash flow by leveraging revenue.

Copyright © 2016 UMB Financial Corporation

CHALLENGE: The rigid traditional bank relationship and line of credit restrictions hindered the company’s ability to add locations and expand serviced territory.
 
Leveraging accounts receivable financing
 

The company reached out to MTF in 2014 to review financing opportunities with the goal of replacing its current lender, which had placed restrictive covenants on the company. These covenants were affecting the company’s advance rate and funds availability, further impacting day-to-day operations and limiting growth opportunities. MTF worked with the company to customize the Advance Plus A/R financing package based on the company’s specific needs.

MTF advanced the necessary financing to pay-off the current lender, totaling $3.5 million, and worked with the company’s management team to help streamline the operating line and accounting procedures. With MTF’s back office and accounting support, the company was able to increase productivity and improve A/R turnover rates.

As an added benefit, the Advance Plus program is tied to the company’s revenue, which allows fund availability to adjust based on the company’s growing accounts receivable as they continue to add clients and locations, allowing cash flow to keep pace with operational needs.

 

About Marquette Transportation Finance

Marquette Transportation Finance,  located in Bloomington, Minn., is a subsidiary of UMB Bank, n.a. and is a leading provider of accounts receivable financing solutions for the trucking industry, serving companies with annual revenue from $2 million to $400 million. Marquette assists trucking companies in meeting their working capital needs to drive growth, fund acquisitions, improve liquidity and fund restructures. MTF continuously works to implement industry best practices and remains up-to-date through its membership to ATA, TCA and state trucking associations in its regions. MTF is small enough to be nimble by controlling how it manages and offers its services, while also providing strength through its parent company, UMB Financial Corporation.

SOLUTION: The flexibility of MTF’s accounts receivable financing provided funds that allowed the company to grow and will grow with them.
 
Niche Industry Expertise
 
In addition to providing financing, MTF provided critical insight into the specific cash flow and operation needs for the trucking industry. MTF works exclusively with the transportation industry, and understands what it takes to run a successful trucking business. Unlike many traditional lenders that are apprehensive about fast growth, MTF encourages operational expansion and was the right financing partner for this up-and-coming cargo company.
 
 
 
The Bridge to Success 
 
Transportation is an industry with unique challenges. Partnering with a lender that understands those challenges and can provide custom solutions is critical for companies looking to grow or improve cash flow. MTF is uniquely positioned to meet the financing needs of carriers by offering the strength of a bank with a size nimble enough to quickly process working capital programs. Alternative lending can help companies bridge the financing gap left by traditional banks, including funding rapid growth and new ventures.

Company Profile

This tank transport operation manages a fleet of more than 90 trucks and over 100 specialty trailers to provide comprehensive tank and general commodities transportation solutions. Transported cargo includes acids, corrosives cleaning compounds, industrial oil chemicals and hazardous waste, and its container and domestic transportation division also carries general commodities like machinery, retail goods, pharmaceuticals, and fragrance products.


Discovering bank limitations

The owners of this transport company always have an eye on expansion and innovation, which initially brought them to MTF in 2007 to discuss financing options. The company ultimately chose to move forward with traditional bank financing, which worked well for several years until the company decided to add new terminal locations to accommodate its rapid growth. The company discovered the rigidity of the bank’s line of credit structure did not allow for the needed cash flow flexibility, so the company had to look elsewhere for funding to fuel its growth.

DiAne Reed is the senior vice president and national sales manager for Marquette Transportation Finance. She has more than 35 years of experience in the transportation industry and is active in the industry as a member of the American Trucking Associations’ Women in Trucking committee, the Truckload Carrier Association’s Communications and Branding committee, and as a member of the North Carolina Trucking Association, International Factoring Association and Commercial Finance Association.

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