TCJ Case Study
Lumber Distribution and Fabrication
ABOUT THE COMPANY
HQ Location: West Coast, United States
In Business For: 1 year Annual Revenues: $8M
Management: Experienced in industry
Customer Base: Primarily independent construction companies that use lumber in projects for individual clients
Operating History: Company had closed during the Great Recession. They restarted their operations under new management and ownership 6 years later.
Reliance on Inventory: Much heavier concentration of inventory than A/R on their balance sheet.
High Seasonality: Company was 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.
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.