Facility Amount: $2,000,000 including a $275,000 inventory loan
The Company: This Texas-based telecommunications company sells and maintains reliable two-way radio solutions to enhance communication, security and efficiency for effective business operations.
The Issue: This company suffered a decrease in revenue recently. To compensate for this, the owners had taken several cash advances from online lenders at extremely high interest rates. This exacerbated their losses and working capital issues, prompting them to reach out to their former CFO and to rethink the way they were now doing business. The company’s existing factoring relationship was no longer offering the flexibility they needed, so they found a new financing partner who could better meet their working capital needs.
The Solution: The company was referred to Allied by a banker, and Allied was able to provide a $2,000,000 credit facility. This, plus the $275,000 inventory loan, gave the company sufficient monies to pay off their expensive cash advance loans and more working capital as they work to realign the business and refocus on sales.
The Win: This Funding By Allied provided the company with greater working capital to run and grow their business.