Keeping the Fleet Moving: Financial Reviews for Debt Covenants

Executive Summary

In capital-intensive industries like Logistics, debt fuels growth. A Memphis trucking fleet with 50 rigs was facing a liquidity crisis when their lender threatened to pull a $5M line of credit due to missed reporting covenants. Fynex Global stepped in to perform an expedited Financial Review, cleaning up the 'Prepaid Fuel' and 'Tire Amortization' accounts to present a GAAP-compliant set of books that satisfied the bank.

The Landscape: Logistics & Trucking Context

Banks don't just lend on assets; they lend on confidence. When a borrower misses a reporting deadline, confidence vanishes.

The Breaking Point

"Our trucks generate cash, but our books were generating anxiety."

CFO

Logistics Fleet

The internal controller had quit, leaving the books months behind. The bank sent a 'Notice of Default'.

The Fynex Protocol

Fynex mobilized a 'Review Team'. We reconciled the fuel card statements (WEX), which were the biggest source of variance. We re-amortized the fleet depreciation schedule.

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Technical Implementation

We set up a data feed from their TMS (Transportation Management System) to QuickBooks.

Verified Outcomes

Fuel Cost % of Rev

Audited

The review was delivered 10 days early. The bank renewed the line of credit and actually lowered the rate by 50bps.

Future Horizon

We now handle their monthly covenant compliance certificates.