https://www.youtube.com/watch?v=mT43r41dMB0
Saving a freight brokerage from crisis
with fast AR financing
CLIENT OVERVIEW
A well-established 200-truck freight carrier specializing in cross-border transportation services had long held a high-volume shipping contract with a Canadian powertrain assembly plant, transporting engines to its US-based automotive affiliate. The company had built its operations around this contract, leveraging its substantial asset base and reliable carrier network to support service.
THE CHALLENGE
The sudden cancellation of this long-standing contract led to immediate and severe revenue disruption. Despite being a strong asset-based operator—with over 90 company-owned trucks and 180 trailers—the company faced:
- Extreme cash shortages, placing operational continuity at risk.
- 20 newer trailers under financing, limiting additional debt flexibility.
- A maxed-out factoring facility, leaving no available credit for working capital.
- The urgency to find new revenue channels while avoiding layoffs or idle equipment.
The carrier needed immediate liquidity and a financing partner who could move quickly to understand the value of its fleet and the potential to redeploy its resources.
THE SOLUTION
The trucking company turned to eCapital for help. Recognizing the business’s operational strength, asset ownership, and market potential, eCapital conducted a rapid audit of the company’s:
- Fleet value.
- Collateral structure.
- Potential freight opportunities, including terminal access.
A key opportunity emerged: the fleet was located near and had the capacity to support one of the nation’s busiest inland intermodal terminals. The company’s ability to quickly deploy drivers and trucks into domestic lanes and the recovering spot market offered a strong foundation for financial restructuring.
eCapital structured a custom asset-based refinancing solution, which included:
- Refinancing half of the fleet’s owned trailers to unlock working capital.
- A new line of credit secured by remaining receivables and equipment.
- A lending structure tailored for quick drawdowns to meet short-term obligations.
THE RESULTS
With eCapital’s support, the carrier:
- Stabilized cash flow, avoiding further operational disruption.
- Pivoted its freight mix, rapidly onboarding new clients from regional businesses.
- Secured last-mile delivery contracts, diversifying away from its prior dependence on cross-border auto freight.
- Entered the recovering spot market, leveraging owned equipment and driver flexibility to maximize response time and profitability.
The refinancing package gave the company the breathing room to rebuild while preserving its strong asset-based foundation and workforce.
With eCapital’s support, this 200-truck freight carrier overcame a major revenue loss, stabilized operations, and successfully repositioned itself in the domestic freight market—emerging leaner, more diversified, and better equipped for long-term sustainability.
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