A well-established Atlantic family owned transportation company operated without bank financing due to a prior restructuring 10 years ago.
The company is profitable and elected to expand into the Alberta oil patch servicing heavy equipment. Their working capital was depleted during the expansion and revenues exceeded their expectations resulting in cash flow challenges. A further expansion into the Atlantic region also proved successful. However, working capital was also impaired as a result of high receivables and no bank support.
The company fell behind on CRA remittances and approached TCE Capital for an operating line to pay CRA and bring suppliers current. A $1 million operating line and a $400,000 Demand Loan as a standby facility was approved and disbursed.
The client was referred to TCE Capital by a government agency.