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Solution Spotlight:
Industry Expertise and Flexible Financing Improve Cash Flow
Learn how Marquette Transportation Finance can help your business grow.
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.
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CHALLENGE: Transfer relationship back to MTF.
Streamline Cash Flow
The carrier decided to transfer the relationship back to MTF, but ran into some legal difficulties surrounding the acquisition of the Canadian entity. The smaller bank's legal team did not have the expertise to manage the process and the transfer stalled,
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 used it's knowledge and effective legal team to quickly transfer the relationship back.
Leveraging Industry Expertise
When MTF's legal counsel stepped in, the team quickly arranged for the Canadian firm to complete the necessary paperwork to comply with underwriting standards and was then able to fund the Canadian account receivables. These actions in turn further improved the carrier's cash flow position. The carrier felt MTF got them out of a holding pattern around the legal matters and kept them well informed throughout the entire process. MTF's deep industry knowledge left a lasting impression on the carrier, and now they look forward to a lasting and productive relationship.
Company background
The carrier was established in 1968 and was later acquired by the present holding company in 1987. The company started as a refrigerated less-than-truckload carrier providing temperature sensitive services primarily to local customers throughout the Pacific Northwest. It has since expanded services to include redistribution of refrigerated products throughout Oregon, Washington, California and British Columbia. The company also supplies regional full truckload and refrigerated services to 48 states and Canada as well as logistic services to Pacific Northwest shippers. It operates 90 trucks and 120 refrigerated trailers - most of which are dual temp.
Established Partnership
In 2008, MTF provided the carrier company with an advance plus credit facility of $4 million with no restrictive operating covenants. This relationship continued for three years and while thoroughly satisfied with all aspects of the services provided by MTF the carrier felt compelled to explore a traditional banking relationship, thinking that more traditional line of credit would better meet their long-term needs.
A Change in the Plan
A smaller bank with a regional footprint provided them with a line of credit; however, it didn't fully understand the challenges of the trucking industry or the carrier's operations. Almost immediately there were problems with availability of funds and the carrier soon became unhappy with the bank's lack of understanding of the industry and the carrier's overall operations. The situation boiled over when the carrier bought a Canadian company and the accounts receivables were deemed ineligible on the borrowing base. Without that additional revenue source, their cash flow became unpredictable.
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.
While MTF has the strength of a traditional lender, it also has the flexible solutions, quick turnaround and unique industry intelligence that make partnerships particularly fruitful. MTF is able to offer a spectrum of services that meet the needs of companies in a variety of economic and business cycles.