FEATURED CASE STUDY – 02
Driving Growth Through Targeted Asset-Based Lending
About
Reigniting Production Through Smart Credit Structuring
A New England-based specialty vehicle manufacturer approached us seeking additional credit to support its recovery and expansion. The company produces utility vehicles that work alongside vacuum trucks to clear sewers and drainage systems using a specialized mechanical claw.
Due to the global chip shortage, their supply of large truck chassis was severely limited. Despite strong demand and a healthy backlog of municipal orders, they couldn’t fulfill production, leading to reduced sales and temporary operating losses. Traditional banks declined financing due to these short-term losses, even though the issue was isolated and improving.
Problem
Chip Shortage Disrupts Supply and Cashflow
The manufacturer faced operating losses when chip shortages halted access to F-650 chassis, preventing them from meeting customer demand. Conventional banks refused credit despite their strong fundamentals.
Goal
Stabilize Operations and Fund Inventory Growth
The company needed flexible working capital to rebuild inventory, finance receivables, and maintain operational momentum as supply chains recovered.
Solution
Custom ABL Facility Backed by AR & Inventory
We secured a $1.5M line of credit through a non-bank ABL lender, with advances tied to accounts receivable and inventory levels. As the business regained traction, the facility was expanded to $2M to accommodate growth.
Targeted ABL Strategy
We designed a credit solution tailored to a manufacturer’s real cashflow rhythm, focused on asset strength and production cycles rather than conventional balance sheet metrics.
Phase 1
Analyzed backlog strength and future demand
Identified supply chain impact on production timelines
Evaluated collateral structure (inventory + AR) for borrowing base design
Phase 2
Lender Selection & Structuring
Partnered with a non-bank ABL lender experienced in manufacturing finance
Structured an initial $1.5M revolving facility
Established scalable borrowing capacity based on performance triggers
Phase 3
Ongoing Expansion & Support
Facility expanded to $2M as production stabilized
Terms adjusted to improve liquidity through growth
Continuous monitoring and lender relationship management
Result
Restored Cashflow and Scalable Credit Access
The ABL facility provided the liquidity required to rebuild inventory and fund new orders, restoring stability during the post-shortage recovery phase.
By aligning financing with operational realities, the company secured the flexibility to grow confidently, transforming a temporary setback into renewed momentum.
CASE STUDIES
