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Warehousing and Logistics on the Bank Naughty List
In today’s lending landscape, industries are being scrutinized more than ever and some are being painted with a broader brush than they deserve.
We’ve seen an increasing trend where Warehousing, Distribution, and Logistics companies are being lumped in with Transportation, prompting traditional banks to pull back or exit these relationships altogether. While these sectors may work hand-in-hand, they are not one and the same and they certainly shouldn’t be treated as a collective risk.
For many banks, “Transportation” remains on the so-called naughty list – a high-risk industry with narrow margins and unpredictable market swings. Unfortunately, logistics and warehousing businesses, despite stronger fundamentals and steadier revenue models, are being caught in the crossfire. We’ve spoken to several companies recently that have been asked to find new funding; not because of poor performance, but simply because they’ve been misclassified.
At Sallyport, we dig deeper.
We understand the unique dynamics of logistics and distribution businesses, from warehouse space optimization to B2B fulfillment models. These companies play a critical role in the supply chain and deserve a funding partner that can differentiate between perception and reality.
If your business is being unfairly sidelined, we’re here to step in with flexible, tailored working capital that aligns with your operations – not a bank’s checklist.
Let’s talk about the real story behind your business—and how we can help it grow. Reach out to our team today.
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