MorrisAnderson Eliminated Loan Over-Advance so Company can Grow Again

Averitt, Cookeville TN


  • Company caught in liquidity growth caused crunch.
  • $1.6 million EBITDA.
  • $1.5 million annual interest expense.
  • $0.5 million minimum principal payments.
  • $150,000 A/P with 30-day maximum terms.
  • $(1.3) million loan over-advance position.


  • Built a 52-week cash forecast.
  • Secured additional supplier credit terms.
  • Explored purchase of needed key asset (gang saw) to increase sales, lead times and reduce payroll


  • Generated $435,000 additional liquidity by extending terms with selected suppliers to 45 and 60-day, increasing A/P to $585,000.
  • Funded purchase of gang saw via additional supplier liquidity
    ($2) million additional sales
    ($0.4) million additional EBITDA.
  • Provide additional working capital to grow the business by negotiating increased advance rates on inventory in drying yards.
  • Helped management restructure the business to allow for continued growth.