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.
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.
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.