This corporation requested an increase in its factoring line of $500,000 distributed among two of its clients, securing a total line of $1,200,000 in total.
Funding Line Amount
This North American company specializes in domestic and border transportation between Mexico and the United States. It offers international transportation logistics, flatbed, and trailer rentals. This bi-national company runs its operations from Mexico, with a satellite office in Texas, supporting each of its routes.
Since 2012, it has made more than 5,000 deliveries in 98 cities. Its product portfolio includes maintenance, repair, and damage prevention services for tractor-trailers in its workshop and trains drivers to manage the fleet.
In the wake of the COVID-19 pandemic, the international transportation service has entered a crisis that has prevented it from providing an efficient response. This event has caused this industry to face challenges in its effort to access the global economy.
The crisis has led to an increase in the company’s financial debt due to late charges and accrued expenses owed to its creditors. In addition, the company has a liquidity crunch because, as a transportation service provider, most of its costs (such as payroll, maintenance, and fuel) must be paid in cash.
This corporation requested an increase in its factoring line of $500,000 distributed among two of its clients, securing a total line of $1,200,000 in total from ExpoCredit. This financing will be used only in its rental line to continue diversifying its market.
With ExpoCredit’s financing solution, they achieved a minimal reduction in sales in 2021 despite the complex global outlook. The temporary lack of operating capital affects several companies when hiring additional employees. This proposal contributes to the early recovery from the crisis in the international transportation service.
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