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 

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THE CHALLENGE

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. 

Lumber Challenges
 

 

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. 

 
Lumber Solutions
 

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