Solution Spotlight: 
Flexible Financing to Support Rapid Growth

Learn how Marquette Transportation Finance can help your business grow.

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Marquette Transportation Finance (MTF) offers alternative solutions to traditional lending that allow companies to quickly access funds to meet the daily demands of the transportation industry. With its flexible and customized packages, MTF provides financing for restructures and acquisitions, and can help companies improve liquidity.

Copyright © 2016 UMB Financial Corporation

CHALLENGE: The freight company needed quick access to funds to meet the growth demands and financing flexible enough to evolve with the shifting industry.
 
Service and Solutions
 
To avoid increased costs and restrictive covenants at the traditional bank, the company contacted MTF. After reviewing the freight company's situation, MTF offered a custom financial package built specifically for the complexities of the transportation industry. This package included the credit line the company needed to fuel everyday operations and to sustain its growth pace. Plus, MTF was able to offer a better advance rate than the bank, which further improved the freight company's access to funds—without any covenants for the company to trip over.

About Marquette Transportation Finance

Marquette Transportation Finance, a subsidiary of UMB Bank, n.a. located in Bloomington, Minn., 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: MTF's flexible financial package was able to meet the financial requirements that allow the freight company to continue to expand its business and haul effectively.
 
Set Up for Success
 
Free from the restrictions of traditional bank financing and its complicated covenants, the freight company can now move forward with adding clients and expanding its fleets with a $2.9 million credit facility. Transportation is an industry with distinct challenges, so it's critical to partner with a lender that understands the needs of your company and can provide flexible solutions that aren't one-size-fits-all. MTF is uniquely positioned to meet the financial needs of freight and trucking businesses by offering the strength of a bank with a size nimble enough to allow for quick turnarounds on funding and program implementation. Alternative lending can help companies bridge the financial gap left by traditional banks, including funding rapid growth and new ventures.
 

Company background

In 1985, this freight company launched with just one truck, hauling grain across states lines in the West. Today, it employs more than 300 people and operates more than 250 trucks as a nationwide, dry goods transportation business—and it continues to haul for its first customer. With an increasing growth trajectory, the company needed financing that could accommodate its operational expenses, as well as the challenging pay cycles of the transportation industry.

Accelerated growth

The freight company was working with a national financial institution for day-to-day financing through asset-based lending. But, as its book of business grew and its needs increased, the bank began to limit the credit line and enforce covenants, complicating operations. With insufficient credit offerings and increasing restrictions, the company was losing liquidity and growth momentum. When the bank notified the company that its account was being placed in the special assets division—a move that would cost the freight company over $10,000—the company knew it was time for a change. 

DiAne Reed is EVP/ 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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