Our client is a minority-owned transportation company. After driving as an owner-operator for 20 years, he began his own company in late 2012. Unfortunately, it takes heavy cash outlay to get trucks on the road and he was undercapitalized at launch. Bootstrapping with savings and personal credit got him through the first few months. Revenues surged. Then mechanical failures hit and his cashflow was impacted. An alternative lender provided a high-interest loan, which established a cycle of negative debt that lasted 18 months: increase in revenues went to pay the debt which exacerbated cashflow forcing him to borrow again. Upon beginning our engagement, we negotiated with the alternative lender to remove liens that allowed our client to receive $150,000 in capital from a CDFI (Community Development Financial Institution). This stabilized cash flow and enabled investment in new trucks. His previous-year tax returns had shown losses of $100, which disqualified him from acquiring capital by conventional means. The next year we assisted in submitting tax returns with positive cashflow, which allowed him to refinance the existing loan and get additional working capital and equipment. New loan amount was $450,000 amortized over seven years at 6.75%.


Stabilize cash flow, refinance high-cost loans, purchase new equipment.


$500,000 term loan.


  • Preparation and submission of tax returns for 2016.
  • Implemented Quickbooks Online accounting package.
  • Developed and implemented Debt Service Coverage (DSC) Ratio.
  • Monitor monthly Profit & Loss Statements in accordance with DSC Ratio.
  • Submission of first loan package for $150,000 to CDFI.
  • Submission of second loan package for $450,000.


An initial term loan approved for $150,000 at 8.125% with an amortization period of 5 years. A second term loan of $450,000 refinanced the existing loan with an amortization period of 7 years at 6.75%.


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