Chesapeake Bank Cash Flow Program

What’s a small carrier do when all of the incoming checks are “in the mail” and the bill collector is on the phone or at the door, or heaven forbid, wandering the truck stop tarmac with a repo driver?

The obvious solution is to manage the books a little better, but there are times that even smartly run businesses will face a cash crunch. The trick is not to be caught by surprise—to plan rather than panic.

And that’s where Cash Flow, a line of credit offered by the Chesapeake Bay can come in handy, according to Kevin Wood, a sales officer for the bank.

But what he’s really marketing, he says, is “peace of mind”.

While Cash Flow might initially present itself similarly to factoring services—used in the invoice-intensive shipping industry for years—Wood explains there are important differences.

Where factoring often means handing over all of a carrier’s accounts receivable in exchange for discounted ready cash, Cash Flow is based on a banking model of credit—and includes bank regulatory and reporting assurances.

The Virginia bank has had a number of trucking and logistics customers in the program over the years, Wood explained. He said Cash Flow is a “great fit” for transportation companies not only because of the “cash gap”, or the typical industry billing lag, but because it can be used to exploit some efficiencies of doing a cash business on the expense side.

The program also features flexibility and case management options not found in most factoring arrangements, Wood contends. Because the customer is still in charge of the actual collection process—the payment is simply sent to a bank controlled post office box—the transactions are seamless.

As an example of transportation-oriented business that has used the program effectively, Wood explains that one customer—a moving company—has a seasonal business that will invariably see a couple of slow months during the year. The company uses the Cash Flow line of credit to keep up with payroll rather than reduce staff during the off season.

When asked why more didn’t offer similar programs, Wood said banking regulators typically labeled such loans as high-risk because of their “non-asset” nature, and that most banks are simply more comfortable handling routine home mortgages.

He also noted that Chesapeake Bank has favored business with smaller companies, cultivating a clientele with sales in the $1 million to $3 million range—a market segment often overlooked by banks that prefer lending big.

“Over the years, we’ve figured out how to do it, and we’ve just slowly grown the program,” Wood said, adding that the program has featured as many as 75 customers at a time, with a life cycle of three or four years.

“The best fits are companies in growth mode,” Wood said—meaning experienced outfits who know how to run a profitable business but who are “taking advantage of the marketplace” by expanding their fleets or improving equipment.

Carriers should use good business sense when making any such financial decisions, of course. In an ideal world, that means having sufficient cash reserves to cover the cash shortage.

Tom Weakly, director of operations for the Owner-Operator Independent Drivers Association (OOIDA) Foundation, said his organization recommends a 60 to 90 day cushion of operating funds, based on the typical billing cycle.

Similarly, the organization, “doesn’t encourage” borrowing against receivables, or selling them at a discount, because “it helps put you further in the hole,” Weakly said. “At the same time, we recognize that in some cases it may be the only way to get money flowing.”

Truckers who are just getting started with their own authority often face a “pretty dramatic change,” Weakly said, when they find out that the payday for a particular load doesn’t come automatically to a driver who is now his own boss.

To that end, Weakly and the association suggest truckers do their research when it comes to any sort of business deal.

Patio Stones - Eagle Bay

Given the popularity and practicality of patio stones, it’s no wonder that they have been the chosen medium for flooring for years. As a matter of fact, Romans considered similar stones in 300 B.C., when faced by the project of building roads. By 200 A.D., Romans successfully used stones to create roads through their villages. That traditional, old-world charm is consistently being used today. While the initial appeal of stone began with fireplaces, it has now rapidly expanded outdoors to custom built patios, barbeque pits, privacy walls and lounging areas.


Although the use of stone for exterior applications dates back centuries, it is still a common practice today. This trend has dramatically increased over the past 40 years and continues to be a design must-have in residences and commercial properties. Patio stones are not only one of the most durable building materials, but they provide a timeless appearance, often desired for both residential and commercial designs.

The advantages and uses of manufactured patio stones are endless. While they are durable and low maintenance, the advantages of the material extend far beyond their physical qualities. Patio stones aid in synchronizing a structure with its environmental surroundings. In addition, they add aesthetic to the surrounding property. They are used to build patios, decks, walkways, retaining walls and other outdoor structures. In any design, patio stones never fail to create a functional outdoor environment considered part of the home. Oftentimes, patio stones are used more subtly, as accent pieces. However the design is drawn up, architects and designers continue to discover innovative ways to utilize patio stones to their fullest potential.

If you scroll the pages of a home renovation or design magazine you will see evidence of the growing trend in patio stones. In the past years, landscapers and contractors have taken a new approach to using this historic material outdoors, and in such work, create luxurious and inviting spaces outside the home.

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Eagle Bay is a leading provider of patio stones and other hardscape products. If you're looking to add more excitement and functionality to your yard, visit them online.

Cold Storage Warehousing - Richmond Cold Storage

Cold storage warehousing logistics are a widely used tool in the complex and competitive market of manufacturing and distribution. With cold storage warehousing on the rise, more companies choose to rely on the expertise of the third party logistics industry to meet their storage and distribution needs. However, the growing refrigerated warehousing trend produces a heavy responsibility on cold chains to meet the ever-so growing demand of trade and consumption rates. There was a time when many of these logistics companies wondered if they could stand up to the challenges in running a one stop shop. Fortunately, in the past 10 years the precision of technology made cold storage warehousing operations easy to manage, therefore, too hard for manufacturing companies to pass up. The result was that food manufacturers began to outsource their food storage and transportation needs to refrigerated storage experts.



Without cold storage warehousing operations, companies would have to self-operate massive warehouses and spend a considerable amount of time and resources on computerized tracking and inventory systems. Due to the demand and increase in cold storage warehousing, logistics teams rely heavily on information technology, automated systems, cross-docking and other methods to promise accuracy and speed. These consolidated functions guarantee clients shorter storage times and fast transport to shelves. Just recently, cold storage operators have developed even more expertise in their operations through experimentation and the application of new technology. Now, manufacturers can get back to what they initially sought as their main focus, developing quality products.

Richmond Cold Storage does not only take responsibility for the safe storage of goods. We pride ourselves in running your entire operation, everything between point of manufacturing to point of sale. We see to it that whether inbound or outbound, your products and materials will get to the right place, at the right time. Our main goal is to see to it that your products are in the hands of a satisfied client or consumer.

Welcome to Richmond Business Spotlight

Richmond, Virginia has a lot to offer. Located two hours from the ocean and two hours from the mountains, it is a wonderful area to settle down and raise a family.


Richmond is best known for it's history, culture, food, and business. With this blog, I will spotlight business throughout the Richmond Metro area while providing additional insight into their industry.