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From Recession to Runway: A Senior Line Fuels Factoring Growth
A West Coast-based transportation factor with a strong local niche was ready to grow following the recent trucking recession, but needed a senior facility that could scale with demand. Haversine structured a senior secured revolving line of credit of $1.0MM, with an accordion feature, which was later upsized to $1.5MM with room for additional expansion. With flexible advance rates and thoughtful concentration limits, the facility provides the factor with the liquidity and runway to support portfolio growth while remaining positioned for future opportunities.
Client
Factoring Companyindustry
TransportationService Provided
The Opportunity
This West Coast-based transportation factoring company focuses on relationship-driven originations, with a strong niche presence in their community. Coming out of the recent trucking recession, the factor sought a capital partner that could support their growth with a senior line of credit layering on top of their existing owner capital. Initially approaching Haversine to explore scalable capital options, the factor returned as market conditions began stabilizing and growth opportunities emerged through buyouts and organic referrals.
The Challenge
The transportation sector experienced significant volatility over the past several years. While the factor maintained profitability and solid portfolio oversight, the company needed:
- A senior facility structured for growth
- Flexibility to scale as volume increased
- A partner who understood transportation factoring dynamics
Haversine’s Solution
Haversine initially provided a $1.0MM senior secured revolving line of credit, structured with an accordion feature to allow staged growth. As the factor’s portfolio strengthened and expanded, Haversine increased the facility to $1.5MM, with capacity for further expansion. Key features of the facility include:
- Senior secured revolving structure
- Advances up to 85% of eligible net funds employed
- 30% client concentration cap
- 20% account debtor cap
- Structured minimum usage and renewal flexibility
The facility was designed not just to provide liquidity, but to scale alongside the company’s growth trajectory.
The Results
Portfolio growth supported through flexible capital and a factor who is positioned for growth.
“We could not have done this without our strategic financing partner…who has continued to support us on this path of growth, with not only money but with advice and oversight.”
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