$7MMNon-Notified Revolving Line of Credit
A fast-growing 3PL spun off from an established trucking and logistics company was too new for its bank, and its largest customers would not work with a factor. InterNex provided a $7MM non-notified revolving line of credit with built-in upsize potential.
Client snapshot
$7MM facility
Client name withheld. Facility limit at closing.
The 3PL was a newly formed spin-off from an established trucking and logistics company. Despite being less than two years old, it was growing rapidly and needed a scalable working capital line to capitalize on new opportunities and ensure a smooth operational transition from the spin-off.
Its short time in business made traditional bank financing a challenge. A factoring facility would also have been difficult to operate, because the 3PL's largest customers were unwilling to accept a factor's full notification requirement, which would have instructed them to change the payee name and remittance address from the 3PL to the factoring lender.
InterNex recognized the pedigree of the leadership team, deeply experienced transportation executives with backgrounds in Fortune 500 companies, and the quality of the 3PL's customer base.
By focusing on the quality of its accounts receivable and the strength of its established networks, we provided a non-notified $7MM revolving line of credit that did not disrupt customer relationships. Unlike a rigid bank loan, the facility included upsize potential designed around the company's trajectory toward $100 million in revenue.
The client also integrated with Velocity, our cloud platform, gaining real-time data analytics and automated AR management that a traditional lender does not offer.
Freight brokers and 3PLs pay carriers quickly but often wait 30 to 45 days or longer for shippers to pay. A non-notified line of credit that grows with invoice volume lets a fast-growing logistics business take on new freight without asking its customers to change how they pay.
Our usual guideline is two years in business, but we look at the whole picture. For this 3PL, the leadership team's experience and the quality of its customers supported a $7MM facility.
No. The facility is non-notified, so customers keep paying you exactly as before.
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