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Step 2 – Ground Transportation

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PrairiePriority Shipping

For more than 40 years, PrairiePriority has been a trusted logistics provider for independent and regional food producers, manufacturers and other businesses in Western Canada. The company owns and operates a fleet of large trucks designed to transport product from Manitoba to British Columbia.

PrairiePriority has a preferred vendor agreement with AgriSask, transporting a significant portion of its wheat yield each year to food product producers in Saskatchewan and Alberta. One of PrairiePriority’s biggest customers is Calgary-based CanFoods Limited, producers of some of Canada’s most popular cereal and breakfast brands.

PrairiePriority relies on its fleet to drive revenue, but the cost of replacing older vehicles can hurt the company’s bottom line – especially since its focus on servicing the agricultural industry can lead to uneven revenue cycles. The constant flux of payment schedules also led the transportation specialist to look for new ways to add greater balance to its balance sheets throughout the year.

PrairiePriority Shipping

972 employees

$161.3 million in annual revenue

PrairiePriority turned to HSBC for Lease Financing to better align the cost of acquiring new vehicles with the company’s ability to generate revenue from them. The company’s uneven demand and revenue cycles (which increase substantially during the fall harvest season) required a unique approach to payment schedules, which HSBC was able to structure in concert with company management to ease cash flow burdens during slower seasons.

To help strengthen its cash flow position year-round, PrairiePriority also uses HSBC’s Receivables Finance solution to receive early payments by allowing the company to access up to 90 per cent of the value of its invoices within days of issuance. This helps better cover everyday expenses like fuel and maintenance because cash is usually trapped in the sales cycle.

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Step 3 – Industrial Manufacturing

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