Daily News: March 8, 2019

Allied Closed $3MM Financing for Oil & Gas Company


Allied Affiliated Funding recently closed $3 million in receivables financing for a Texas-based oil and gas company.

The company distributes pipe, valves, fittings and engineered products to the mid-stream energy sector and primarily focuses on energy and petrochemical companies.

With the gas growth in 2018, the company continued to build its customer base and revenue. After primarily being self-financed, the company needed funding. They received a proposal from two other bank-owned factoring groups, but the owners did not want to provide a personal guaranty for a facility.

The company was referred to Allied, whereupon Allied offered the company an accounts receivable facility with a limited, validity-only guaranty.

The company will continue to build and grow its business and plans to only factor enough invoices for needed working capital, as Allied does not require all invoices to be financed.

The funding will additionally help the company take on new orders, with a flexible structure that allows it to better manage its overall cost of capital.

Allied Affiliated Funding is a division of Axiom Bank which specializes in factoring, asset-based lending and credit facilities, including accounts receivable financing, inventory, equipment, real estate and term loans.