Transportation Funding Group Keeps Growth Rolling Along
Fidelity Bank finances 250% growth, 2 shareholder buyouts

Client:
Paul Kreuter, owner, Transportation Funding—accounts receivable and freight bill factoring company that provides predictable cash flow for trucking companies nationwide.

Challenge:
Replace long-distance banking relationship

Resolution:
Long-term local partnership with Fidelity Bank to finance company’s growth

Results:
Financed 250 percent profitable growth over three-year period, with commensurate margins.
Financed two shareholder buyouts.
Replaced unsupportive relationship with a long-term banking partnership.

What happens when a business surpasses its challenges and returns to profitability? At the very least, the company can expect a pat on the back from its bank. At best, the two celebrate their partnership. Hold the confetti.

“Our out-of-state bank suggested we look elsewhere for our financing,” says Transportation Funding Group (TFG) Owner and President Paul Kreuter. “It seemed like an unlikely response after we had reassessed our customer base, downsized, gained clarity about our market, and came out the other side as a stronger operation.”

Local bank that speaks our language
After searching the country for a new bank and talking with 105 banks, Paul says he “saw the light” and concluded that a long-term, local relationship would help TFG accomplish more. “I wanted to build a partnership with our bank, like we have done with so many of our customers who have done business with us since we began in 1995.”

Fidelity Bank was on Paul’s list. He recalls being impressed with their experience in commercial finance. “In fact, they had a customer in a similar business, and demonstrated a deep understanding of our situation. They really spoke our language.”

Easy to work with
Fidelity also made it easy for TFG to understand the bank. Paul says, “I was used to slogging through 60-80-page bank documents, so when I saw Fidelity’s one-page agreement, I was pleasantly surprised. This characterizes how truly easy Fidelity is to do business with.”

Rich Ogle, TFG’s banker and vice president of commercial lending, notes, “We really do try to make our customer partnerships transparent, having found that open communication generates the best outcomes.”

Rich adds, “TFG laid out a plan with sensible risk, and we gladly reinforced it with a financing plan. The company has delivered on their commitments with consistent, profitable growth for three years now.”

Since Fidelity initially funded TFG in June 2010, the company has grown 250 percent, with healthy, stable margins. Fidelity has financed two separate TFG buyouts for Paul’s retiring co-owners. With fewer staff, fewer customers and fewer owners, the company is well positioned to continue its growth.

Thankful for an ideal partnership
Paul has the utmost confidence in Fidelity, praising Rich’s experience and professionalism. “Having dealt with others who were less knowledgeable, I can tell you Rich knows the right questions to ask,” he says. “He is astute and engaged. It’s more than a convenience being 10 minutes from my bank. The proximity has certainly supported transforming a relationship into a partnership. When I walk into the bank, they know who I am. I’m just thankful everyday for Fidelity Bank.”