Allied Affiliated Funding closed two accounts receivable facilities for a total of $8.5 million.
The first was a $500,000 facility for a Georgia-based distributor of drug resistant screening and sequencing kits for the effective treatment of infectious diseases. Although originally founded a few years ago, the company relaunched and needed a line of credit over and above the funds it had raised to build the business.
The company had difficulty securing said credit, as it had a limited operating history. It concurrently received a large order from a foreign distributor, with more orders pending for this customer, leading to rapid growth. Allied set up a $500,000 line of credit for both its domestic and foreign receivables.
Allied also provided a $8 million facility to a New York-based staffing company providing security guard services for retailers throughout the nation. The company had been financed by another factor for the last several years, but its rapid growth and expansion required a more flexible and competitive funding structure.
Once the company decided to leave its long term factor, Allied closed within one week while also providing a larger facility and a 93% advance rate.
