Empire State Freight Working Capital Growth

Empire State Freight secured $400,000 in working capital to expand fleet operations and improve cash flow, resulting in 35% revenue growth and on-time delivery rates exceeding 98%.

Brianna Yates, Fleet Operations Director of Empire State Freight Solutions a trucking business in New York standing with subtle confidence

Executive Summary

Empire State Freight Solutions, a Brooklyn-based regional trucking company with 12 active trucks, faced severe cash flow constraints despite consistent revenue growth. The company needed capital to purchase two additional vehicles and cover operational expenses during seasonal demand fluctuations. A $400,000 working capital loan provided the necessary liquidity to scale operations strategically.

The Challenge

Inability to accept profitable loads due to insufficient capital for fuel, maintenance, and driver payroll during high-demand periods
Delayed invoice payments from major logistics clients creating 45-60 day cash gaps
Missed opportunities to acquire long-term contracts requiring proof of expanded fleet capacity

The Solution

Empire State Freight Solutions selected a working capital loan over traditional equipment financing because it offered flexible drawdown terms and faster deployment without collateralizing existing assets. The company needed immediate liquidity to operate at full capacity rather than locked-in capital for specific equipment.

The $400,000 was strategically deployed across three areas: $180,000 for down payments on two Volvo VNL tractors, $140,000 allocated to working capital reserves for fuel and driver payroll, and $80,000 dedicated to upgrading fleet GPS tracking and dispatch software. This balanced approach eliminated payment delays by enabling the company to maintain consistent operations during client invoice cycles while simultaneously expanding service capacity.

Brianna Yates, Fleet Operations Director
"This working capital loan was transformational for us. We went from turning away loads due to cash constraints to confidently expanding our fleet and serving more clients consistently."

The Outcome

Fleet expanded from 12 to 14 active trucks with 98.2% on-time delivery rates, exceeding industry standards
Monthly revenue increased 35% within 12 months while maintaining profit margins of 8-10%
Cash-to-cash cycle improved from 62 days to 34 days through better operational planning and client diversification

Conclusion

The working capital infusion enabled Empire State Freight Solutions to break through a growth ceiling that had constrained the company for two years. Management can now bid on larger contracts confidently and maintain steady cash flow through seasonal variations.

Looking Forward

The company projects an additional 8-10 vehicle expansion within 18 months and is exploring opportunities to open a secondary terminal in New Jersey. Based on current performance metrics, management plans to refinance the original loan at improved terms within 24 months.