Lumber Distribution and Fabrication Case Study

 
 

ABOUT THE COMPANY

HQ Location: West Coast (Pacific)
In Business For: 1 year
Management: Experienced in Industry
Customer Base: Primarily sell to independent construction companies who use lumber in projects for individual clients. 

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THE CHALLENGE

Limited Operating History: This business closed during the Great Recession, and restarted its operations under new management and ownership 6 years later. 

Reliance on Inventory: Much heavier inventory than A/R concentration on their balance sheet.

Seasonal, Cyclical Business: This is a seasonal and cyclical commodity-based business with 60% of revenues coming in a 5-month period. 

Concentrated Customer Base: Customers were highly concentrated due to early stage nature of the business. 

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THE SOLUTION

The Credit Junction worked closely with the company and its management to craft a financing solution that met both their short and long term needs. 

 

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