Oilfield Hauling Contractor
Northeast & Midwest
The parent company has been in business for 27 years, operating mainly as a construction company.
In 2011 they expanded into the shale oil sector, operating water hauling trucks to service this rapidly expanding market.
They quickly grew to 180 employees and were operating as many as 80 trucks.
As the shale oil market began cooling, their expansion and their cash flow slowed.
An enterprising CCG salesperson stopped into the company’s new location, having seen trucks in their yard. He inquired as to their new equipment needs and discovered that they weren’t in the market for new trucks but were in workout status with their bank.
Understanding that cash flow and working capital can be key components to a successful workout, he informed the controller that in addition to being able to assist in refinancing existing equipment loans, CCG along with its sister company, Commercial Funding Inc. (CFI), an accounts receivable finance company, could provide a complete one-stop solution to their dilemma.
The company accepted proposals from both CCG/CFI and their current bank and decided to move forward with the bank option. Ten days later, the company contacted CCG again, explaining that the bank wasn’t moving quickly enough, and they intended to move forward with the CCG proposal.
Within two weeks (and over the Thanksgiving holiday), CCG inspected over 85 assets, verifying titles and VINs, and obtained pay-off letters from more than 15 creditors, including the IRS.
The complete transaction included:
The whole process was completed in less than 60 days and closed before Christmas. The company is doing well and CCG has since financed additional equipment for expansion.