https://www.youtube.com/watch?v=mT43r41dMB0
Saving a freight brokerage from crisis
with fast ABL financing
CLIENT OVERVIEW
This mid-sized logistics and freight brokerage firm is headquartered in Southern California. Specializing in drayage and over-the-road (OTR) freight, the brokerage services lanes between the Port of Long Beach and inland distribution centers in Los Angeles, the Inland Empire, Las Vegas, and Phoenix. Known for its reliability and efficiency, the brokerage experienced three consecutive years of rapid growth, reaching $65 million in revenue by the end of 2024.
Rapid top-line growth without matched financial support forces the brokerage to operate under increasing cash pressure, risking both operational stability and continued expansion. The business faced mounting strain, jeopardizing carrier relationships, customer satisfaction, and future growth opportunities.
THE CHALLENGE
In early 2025, the Port of Long Beach saw record-setting import volumes as retailers rushed to bring in goods ahead of newly anticipated US tariffs. For the brokerage, this translated into surging shipment volumes — and rising financial obligations.
While revenue grew, financial strain mounted. Carriers required payment within 15 days, but shippers stretched payments to 45–60 days, creating a widening cash flow gap. The situation worsened as the Port of Long Beach projected a 20% freight volume drop for the remainder of the year, and the firm’s bank moved to terminate its line of credit within 30 days, citing sector risk.
Without intervention, the company faced a looming cash crisis and potential insolvency.
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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