Building a More Efficient Capital Structure for a Growing Factor

The Opportunity

An established transportation factoring company had built a strong reputation serving trucking companies through responsive service and disciplined underwriting. As portfolio growth accelerated through organic expansion and strategic acquisitions, the company's existing participation-based funding model became increasingly inefficient. Management sought a senior lending partner that could provide a scalable revolving facility capable of supporting continued growth while simplifying its capital structure.

The Challenge

While the factor had successfully grown its portfolio, its existing funding model required participation partners and transaction-level coordination for new fundings and existing growth.

The company needed:

• A scalable senior revolving credit facility 
• Greater lending capacity to support continued portfolio growth 
• A more efficient funding structure to replace transaction-by-transaction financing 
• A capital partner experienced in lender finance and specialty finance companies 

Haversine's Solution

Haversine structured a $10.0 million senior secured revolving line of credit designed specifically for the company's factoring portfolio. The facility replaced the existing participation funding while providing a borrowing base that could support future expansion. Key features included:

• Senior secured revolving structure 
• Advances up to 85% of eligible net funds employed 
• Flexible borrowing base tailored to transportation receivables 
• Accordion feature allowing expansion up to $20.0 million 

The financing was designed to simplify operations, increase liquidity, and provide the flexibility needed to support the factor's next stage of growth.

The Results

In less than 30 days, the company transitioned from a fragmented participation-based funding model to a scalable revolving credit facility, increasing operational efficiency while expanding available lending capacity. With a stronger capital foundation and room for future growth, the factor is well positioned to continue serving clients and expanding its transportation finance platform.