Allied Affiliated Funding closed $5 million in receivables-based credit facilities for two Texas companies.
Allied first provided a $2.5 million facility for a woman-owned business that designs and manufactures BBQ grills and sells to national retailers throughout the United States.
The company recently received their first orders from two big box retailers with over $20million in purchase orders over the next several months. The company’s existing, long-term bank lender wanted to keep the business but was unable to offer sufficient financing for this increased growth. The banker referred the transaction to Allied, knowing that Allied could “carve out” these new orders for receivables financing, while still giving the banker the ability to retain the company’s line of credit and depository relationships. The Allied funding will also allow the company to take on new business and continue to expand products offerings.
Allied then provided $2.5 million in financing to a logistics company that provides professional loading services to a number of Fortune 500 companies throughout the United States. The company handles a vast array of materials ranging from tires to retail goods.
The company had been financed through a traditional bank line of credit since 2009, but it experienced losses in 2017 as it had underpriced locations and contracts, which ultimately resulted in past due taxes, a tax lien and the company having to shop for a new bank. The company needed a new line of credit; however, the majority owner’s credit became a challenge in securing long term, traditional lines at a new bank. Consequently, Allied was recommended as an interim bridge financing option. Moving forward with an Allied accounts receivables facility, the company got the necessary funding they needed. The Allied funding also helped refinance the company’s current bank line of credit, payoff the IRS tax liens, catch up on their state taxes and provide additional working capital.