Communication and Traffic Company

traffic

$2,500,000

Line of Credit secured by Accounts Receivable and Inventory

Distributor of Communication and Traffic related products

The Company is a stocking distributor of Communications, ITS, and Traffic products. The Company was referred to Southeastern Commercial Finance through a commercial banker at a larger regional bank that was looking for an exit strategy due to multiple issues including prior losses. The Company list its top salesman at the beginning of 2014 to a competitor which resulted in the Company reducing margins in order to keep customers from following their former salesman. This reduction in margins resulted in a significant loss in 2014. Despite the loss in 2014, the Company’s turnaround plan for 2015 was already taking place as evident by increased sales, a strong backlog, and higher profit margins as compared to 2014. Southeastern was able to provide a larger facility which provided the Company with additional availability to handle their current growth and on-going working capital needs. Despite the exit strategy, the referring bank was able to keep the deposit relationship as well.