Allied Affiliated Funding announced the following recently closed transactions:

• A $10 million A/R facility including a $250,000 inventory loan to an electrical products distributor for the construction industry. The company had been financed by a bank asset based lender for several years. When litigation occurred against the owners, the bank asked the company to seek alternative financing. Allied was able to win the deal after competing with multiple factoring and asset based lending companies by committing to a FAST closing and including accommodations for an inventory line combined with invoice eligibility up to 120 days. Challenges in the deal included past due vendor payments and an antiquated invoicing and payment processing system with over 10,000 invoices combined with a short funding timeline. This Funding By Allied will help the company improve their internal invoice processes turning their invoices and cash faster, and more importantly, gain access to more capital to get their operating cash needs back in line.
• A $750,000 A/R facility to a manufacturer and distributor of snack bars that donates meals to children around the world. They have been raising money for the last few years and have started ramping up their sales model for this new product. This Funding By Allied provided this start-up company with access to cash flow which will enable them to purchase additional inventory to service existing customers while granting them the ability to pursue new customers.
• A $2.5 million A/R facility to an IT staffing company that also offers multilingual content management and translation services. The company has doubled its sales over the last two years, with plans to continue this growth trajectory for 2015. Because of this rapid increase in sales combined with a customer concentration, the company and their bank agreed to ‘carve out’ this one customer from their existing line of credit so that Allied could finance that entity. This will allow the company to maintain their current bank line of credit to keep their cost of funds down, while also fully drawing against their largest customer at a 90% advance rate gaining more access to capital immediately.