Republic Business Credit backs fleet management growth with $5m facility

Republic Business Credit has provided a US$5 million factoring facility to a fleet management services company recently acquired by a private equity firm. The financing will support the company’s working capital needs and planned growth initiatives, including potential add-on acquisitions.

The fleet management company, which has a long history in the transportation sector, provides technology-driven solutions incorporating artificial intelligence and consumer interface tools for logistics and fleet operations. The company sought flexible funding to help manage post-acquisition growth while maintaining day-to-day liquidity.

A financial advisor introduced the company and its new private equity sponsor to Republic Business Credit, which structured a facility designed to meet immediate working capital requirements. The arrangement includes higher advance rates on accounts receivable and the potential to transition to an asset-based lending facility once integration of the acquisition is complete.

“We’ve forged strong relationships with industry partners who know we always act in our clients’ best interests, and that trust was pivotal in closing this transaction,” said Jason Carmona, Executive Vice President and Western Regional Manager at Republic Business Credit.

The private equity sponsor plans to pursue additional acquisitions to expand the company’s platform and market position.

“We have delivered a solution that positions the company for long-term growth and continued evolution,” said Matthew Begley, Chief Operating Officer at Republic Business Credit.