Tailored financing solution
How eCapital helped Industrial Scrap Processors maximize cash flow.
Melissa Merritt has worked in the scrap metal industry since childhood, helping lead her family-owned business, Industrial Scrap Processors, Inc., in Bessemer, Alabama. For years, their business model relied on net-30 payment terms from steel mill customers.
But when one of their largest buyers began extending payment terms to 45—and eventually 90—days, the business faced a serious cash flow disruption. That’s when they turned to LSQ (now eCapital) for a solution that would restore liquidity and preserve growth.
THE CHALLENGE
The extended payment terms came at a time when Industrial Scrap was covering both scrap yard operations and the trucking logistics to deliver to mills—making delayed payments especially painful. Despite being a critical supplier, the company stopped shipping to the steel mill to avoid unsustainable cash strain.
With many of their suppliers still on 30-day terms, the mismatch in payment cycles left Merritt with two options: walk away from a major customer or find a new financing solution. Choosing the latter, she sought a way to bridge the growing payment gap.
That’s a problem when we are not getting paid for three months on our deliveries and we are paying (our suppliers) on 30-day terms.”
Chief Information Officer
Melissa Merritt
THE SOLUTION
In 2019, the steel mill implemented an eCapital-powered supply chain finance (SCF) program, giving suppliers like Industrial Scrap access to early payments. Merritt saw this as the answer to their challenge and immediately enrolled.
Rather than automate early payments, Merritt opted to control cash flow manually—pulling funds as needed to align with operating expenses and maximize margin opportunities. The flexibility gave her financial agility that traditional terms simply couldn’t provide.
THE STORY
Merritt praised eCapital’s FastTrack® platform for its ease of use and logical, intuitive interface—especially important given her background in IT. When initial integration issues arose due to the steel mill’s complex systems, eCapital’s team collaborated closely with her to resolve them quickly.
Since then, eCapital’s SCF solution has helped Industrial Scrap manage its liquidity with confidence, maintain supplier relationships, and operate efficiently—even amid unpredictable payment timelines. “LSQ (eCapital) gives you a ton of flexibility and control when you don’t have any normally,” said Merritt. “I’d tell anyone—they better start using it.”
“The team who wrote your interface did an excellent job,” she said. “It’s very easy to use and logical. The steps to request payments are intuitive, and it’s a simple process to reconcile invoices from LSQ (eCapital) to our accounting system.”
Explore the solutions that supported the cash flow strategy for Industrial Scrap Processor
SUPPLY CHAIN FINANCING
Flexible financing solutions to help businesses improve cash flow, and unlock capital for growth.
