nFusion Capital Fuels the Growth of Lone Star Overnight
Lone Star Overnight (LSO) is a regional last mile parcel delivery company based in Austin, Texas, successfully operating for more than 25 years. They combine the speed of a courier, the discipline of a carrier and the service of a true partner in a one-of-a-kind shipping model that enables them to offer customers their own personal rapid delivery system.
As the pandemic increased demand for shipping services, LSO had an opportunity to greatly expand their business with one of the largest e-commerce companies in the world. To take on the new customer, they needed additional working capital to hire more staff and drivers, purchase more trucks, and keep up with increased operating costs such as fuel and insurance. Their current asset based lender out of New York could not support their continued growth – with the crucial holiday shipping season already underway.
With their current lender unresponsive, LSO knew their future success required a relationship with a strategic financing partner, not just a line of credit. An investor and member of their advisory board recommended nFusion Capital. Our biggest challenge was the required timing involved in getting a new line set up in time for the holidays and working with a high debtor concentration: just 10 customers made up 50% of their accounts receivable.
nFusion Capital immediately began both underwriting and on-boarding, conducting an internal collateral audit rather than waiting weeks to secure an outside vendor. This was especially challenging with over 13,000 account debtors and hundreds of thousands of invoices to validate and reconcile; the initial invoice upload was in excess of $10 million. Once due diligence was completed, we quickly provided a $15 million line of credit that enabled LSO to pay off their existing lender, continue to meet weekly payroll, ramp up to meet holiday demand, and grow successfully.
“From the onset, nFusion Capital has been the kind of partner that you can tell wants to play a role in making our company successful. Through the entire process, the nFusion team was professional, timely, flexible, and just a great partner getting everything set up to support our working capital needs. We are very happy to have them as a partner on our team,” -Chairman, Andrew Townsend.