Bibby Transportation Finance Provides $100,000 for Working Capital to Pay Out Bank Loan to Arizona-Based Courier Service

NASHVILLE, Tenn.--(BUSINESS WIRE)--Bibby Transportation Finance, a subsidiary of Bibby Financial Services, said today it provided $100,000 in freight bill funding to a Phoenix-based courier service that faced severe financial pressure after its bank refused to expand its credit line during a downturn in business.

“Trucking companies continue to feel the pinch of the credit squeeze leaving them with gaps in their cash flow that need to be filled,” said Eric Hunter, managing director of Bibby Transportation Finance. “Although we are starting to see the industry stabilize, many trucking companies are struggling to find the balance that will allow them to grow their businesses even though cash is tight. With freight bill funding, we are able to advance funds against a client’s outstanding invoices and provide the cash flow it needs to operate its business, serve its customers, and pay its obligations while also looking forward to future success.”

The company, which provides courier services to title and financial agencies throughout Arizona, had a $50,000 bank loan that needed to be repaid. With outstanding accounts receivables of about half that amount, the company’s bank refused to extend terms or increase its borrowing capacity. Bibby Transportation Finance was able to advance enough money to the company so that it could begin to pay down its bank loan, but still have sufficient cash to continue operating its business. It is expected that the bank will be repaid in 12 months as the company achieves profitability.

Bibby Financial Services is a worldwide market leading specialist of business cash flow solutions to small and medium-sized enterprises. With offices in 10 North American cities and 27 countries around the world, its product portfolio includes receivables finance, factoring, export finance, purchase order finance, specialist solutions for the staffing and trucking sectors, and it is an approved lender for the Export-Import Bank’s working capital guaranty delegated authority program. Bibby Financial Services is a subsidiary of The Bibby Line Group, a 202 year-old privately held company based in the United Kingdom.

For more information on Bibby Financial Services, visit: www.bibbyusa.com, or on Facebook at: www.facebook.com/bibbyfinancialservices.northamerica

For expert advice on small business, please visit CEO Stewart Chesters’ blog at: www.bibbyusa.com/ceoblog