Allied Affiliated Funding closed $1 million in receivables financing to a Texas-based commercial flooring company and $400,000 in receivables financing to a Louisiana-based oil and gas industry consulting company.

The Texas-based company provides commercial flooring to retailers, schools, senior living centers and other commercial projects. The relatively new business was being funded by its parent entity and was unable to receive traditional bank financing directly due to a limited operating history and losses from launching the business. The company started gaining more traction, increasing sales with larger projects but needed additional working capital to continue growth. The company’s banker referred it to Allied. The funding from Allied took funding pressure off the parent entity while giving the company the working capital needed to continue accepting jobs while meeting payroll and material expense needs.

The Louisiana-based company provides consultants for the oil and gas industry, primarily focused on water production and operations with well work and light roustabout services. The company’s consultants oversee customer crews, which helps customers better manage payroll and related costs. Most of the company’s business currently is focused on natural gas wells. The company had recently moved to a lower cost factoring partner. However, with the onset of COVID-19 and the impact to the general oil and gas marketplace, its new factoring provider pulled its customer credit lines, as it was not as familiar with the energy industry overall. This caused an immediate cash impact to the business, which no longer had sufficient funding for its largest customer. Allied had experience in the industry and with this customer. Therefore, the customer referred the company to Allied. The funding from Allied gave the company the credit limits it needed for working capital needs to cover payroll and contractors.