Date Funded: 4/7/17
Facility Amount: $2,000,000
The Company: This is a Minnesota-based frac sand logistics company with its own sand mine in Wisconsin.
The Issue: With challenges in the oil industry, 100% customer concentration, and a change in their business model, the company needed to obtain working capital from a source other than the bank.
The Solution: The company was referred to Allied by another factor seeking to limit their oil and gas exposure. With the company recently experiencing a sales increase for 2017, the company needed working capital to provide timely payments to their vendors. With Allied’s extra efforts to understand the debtor credit and by requiring written confirmation on the invoices, Allied was able to provide a $2,000,000 credit facility.
The Win: This Funding By Allied will provide the company with the working capital they need to grow their business during a time when working capital is difficult to obtain for oil and gas companies.