Gibraltar Provides Responsive Seasonal Solution for Heating Oil Company

Gibraltar ended its most successful year ever on a strong note, closing an $8 million credit facility for a New York-based heating oil distributor.

Cash Flow Issue – Seasonality

The company, with roots dating back to 1939, distributes various grades of heating oil to more than 2,000 commercial customers across the NYC metropolitan area. Customers include apartment buildings, retail stores, manufacturing facilities, schools and hospitals.

This business has two characteristics that challenge its cash flow. One is seasonality. The majority of the company’s revenue is earned between November and March, in concert with the region’s winter and cold temperatures. The challenge is how to pay vendors for product to meet the seasonal demand before the revenue starts to flow.

Oil distributors also are affected by price fluctuations in the commodity they purchase. The combination of seasonality and variable prices makes accurate planning and forecasting a challenge. Innovative and responsive financing was the answer.

Cash Flow Solution – Asset-Based Line of Credit

With years of experience understanding the problems and potential of all kinds of transitional companies, including those with seasonal revenue and variable expenses, Gibraltar was able to offer an $8 million line of credit that was secured by Accounts Receivable. The timely and creatively structured facility provided the distributor with enough funds to meet the high winter demand.

At Gibraltar, we welcome the opportunity to help mid-market companies in transition find their path to success. Helping them is also our pathway to success, and we are proud of the strong growth generated by our team’s expertise, understanding and commitment to creative financing. We look forward to continuing our expansion into 2020 and beyond.


Gibraltar offers credit facility capacity between $2 million and $20 million to serve mid-market businesses and their unique needs. Check out the quality of our leadership and read case studies of some of the more than 200 companies Gibraltar has helped so far. Then, for more information, set up a consultation today with our sales team.

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