TSL Express Daily News

Wintrust Receivables Finance (WRF) announces a $40 million accounts receivable line of credit for a well-established Midwest-based third-party logistics firm. The company has been one of the fastest growing third-party logistics companies in the county for a number of years and recognized as such numerous times by Inc. Magazine as part of the Inc. 5000. The company has grown through the years by providing best-in-class logistics and transportation services to customers in the food and beverage space and the auto industry.  

Over the previous year, the company had experienced a number of financial challenges brought on by a weak domestic transportation market. Multiple factors, including lower load count and margin compression, led to the company generating negative cash flow for over a year. This difficult situation was made worse by a relationship with a small local bank that was unable to provide the level of financial support required for a company of this size, and the incumbent bank’s lack of experience working with clients in the transportation industry. 

The new $40 million WRF line of credit is more than double the size of their previous line. This new line of credit provided aggressive advance rates on both billed and unbilled accounts receivable, and a no-financial-covenant structure. The additional liquidity provided by the WRF line, combined with a no-financial-covenant structure, will give the company access to the liquidity and flexibility it needs to ride out the current transportation market cycle. In addition to the new line of credit, the WRF team is also providing a full suite of treasury management products and services.

According to John Marrinson, Executive Vice President of Wintrust Receivables Finance, “A combination of factors, including the difficult domestic transportation market, led to a liquidity crunch for the client, which we were able to solve for by providing a larger line of credit supported by the client’s accounts receivable.” Jason LeuVoy, Wintrust Business Credit National Head of Originations added, “Our team’s previous experience supporting the working capital financing needs of a number of companies in the logistics industry, over multiple industry cycles, gave us unique insight into the company’s near term financing needs, and prospects for long term succuss.” 

For more information, please contact Jason LeuVoy at 312-550-3056 or jleuvoy@wintrust.com.

Banking products provided by Wintrust Financial Corp. banks.

About Wintrust Receivables Finance

Wintrust Receivables Finance is a division of Wintrust Bank, N.A. Wintrust Receivables Finance provides aggressively structured working capital lines of credit from $2 million to $50 million for middle market companies around the country that are unable to obtain the level of financing they need through a more traditional commercial bank underwriting.

About Wintrust

Wintrust is a financial holding company with $64.9 billion in assets whose common stock is traded on the NASDAQ Global Select Market. Guided by its “Different Approach, Better Results®” philosophy, Wintrust offers the sophisticated resources of a large bank while providing a community banking experience to each customer. Wintrust operates more than 200 retail banking locations through 16 community bank subsidiaries in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas. In addition, Wintrust operates various non-bank business units, providing residential mortgage origination, wealth management, commercial and life insurance premium financing, short-term accounts receivable financing/outsourced administrative services to the temporary staffing services industry, and qualified intermediary services for tax-deferred exchanges. For more information, please visit wintrust.com.