Allied Affiliated Funding closed three accounts receivable facilities for a total of $9.5 million, along with a $350,000 real estate loan.
$8 million went to a New Jersey-based company that designs and manufactures displays for large, well-known companies in a variety of industries. In January 2018, new owners purchased the assets of this company with the help of a higher rate, short term factoring facility. After showing positive performance under their line, the company wanted a more flexible funding relationship with a lower cost of capital to help it further grow the business. The Allied funding will be used to rebuild the company and boost sales.
$500,000 went to a Kentucky-based company that provides wireless equipment and systems. The 38-year-old business had been self-financed for the last year, but with several large new orders, it needed a working capital line, especially for the customers with net 60 day terms. The funding will be used for working capital to accommodate the recent growth and fulfill new orders.
$1.35 million went to a Texas-based machine shop responsible for manufacturing component parts primarily to customers in the oil and gas industry. A family-owned business, the company had experienced setbacks as a result of the fluctuating energy market, which caused stretch payables with key vendors. The losses combined with a set of new orders created a ‘cash crunch’ whereby the company needed a working capital provider to refinance its line of credit, help get vendors paid and gain access to new capital for additional growth. The funding from Allied will be used to help with future growth and pay down other obligations.
