Allied Affiliated Funding, a division of Axiom Bank, completed two receivable funding transactions totaling $1.65 million.
The first was $1.5 million to a Florida-based company that has been in business for over a decade, designing and assembling communication systems for the government and large, commercial companies.
The company received a $6 million purchase order to implement and fulfill a new project over the next several months. With the 100% customer concentration combined with the new growth capital needed, it was not able to obtain a traditional bank line of credit that would also meet the working capital requirements for the job. The owners were introduced to Allied to help create a funding structure that provided the financing needed while also giving them flexibility, so the company could choose which invoices it wanted to finance without being required to finance all of their invoices.
Allied was also able to help save the company money on its banking fees and more.
The second was $150,000 to a Texas-based, start-up company that builds and refurbishes oilfield equipment related to pumps, accumulators, and transmission repair/rebuilds. This business owner had built strong industry relationships over the years and had an opportunity to launch his own company. He was able to obtain new business and started receiving work, but he needed the working capital for parts and labor. Without any operating history, a traditional bank line was not an option. Allied was quickly able to put a line in place so this new entrepreneur could take on orders and grow.