Helpful insights on good business practices, commercial loans, alternative forms of financing and planning your company’s future.
Below are links to articles posted in the Recent Fundings category.
May 10, 2013
Date Funded: 5/8/13
Facility Amount: $500,000 facility and a $25,000 term loan
The Company: The company sells mirrors and art to the hotel trade industry and has recently diversified and expanded into the retail market.
The Issue: Management received new purchase orders from retailers. Therefore, the company needed a line of credit to support this growth, as well as a small term loan to help get started and purchase products.
The Solution: This company was referred to Joel Flig at Allied. Allied was able to creatively structure a credit facility and term loan to meet this company’s specific needs.
The Win: This Funding by Allied will allow the company to start buying inventory and to accept new orders to grow their business and further expand their product base.
April 26, 2013
Date Funded: 4/22/13
Facility Amount: $1,500,000 facility and a $100,000 term loan
The Company: This Texas company supplies office, janitorial and printing products and services at a discounted rate to its customers. They are a one stop shop for printer maintenance and monitoring, cleaning products, paper products, industrial tools and equipment, as well as also having partners that provide telecom services.
The Issue: The company’s current factoring relationship included large monthly minimum requirements that they originally agreed to for planned growth. However, the company’s sales stayed consistent, and they were paying a minimum fee on revenues they did not have.
The Solution: This company was referred to Chris Long at Allied by a local CPA. Allied does not require monthly minimums and was quickly able to establish a credit facility for this company that was more economical for them and better met their needs. Allied also provided the company a $100,000 term loan to pay off additional debts in the business.
The Win: This Funding by Allied eliminated the monthly minimum requirements so the company did not have additional fees that reduced their overall profit. This, combined with the term loan, will allow the company to focus on new sales and on their overall business without having to worry about the cost of their financing when they did not have the sales to support it.
March 27, 2013
Date Funded: 3/26/13
Facility Amount: $1,000,000 including a $500,000 purchase order facility
The Company: This Texas-based company is a distributor of costume jewelry, ladies hats and various accessories.
The Issue: Since the company was still in a start-up phase, they were not eligible for a traditional bank line of credit. In addition, they were seeking purchase order funding with their working capital facility to help with accepting new orders from their customers.
The Solution: This company was referred to Allied by a former client. Allied was able to work closely with the company to fully understand their business and then structure a transaction that would work best for their business needs.
The Win: This Funding by Allied will not only provide this company a working capital facility but also a purchase order facility so they can focus on new sales and grow their business.
March 18, 2013
Date Funded: 3/14/13
Facility Amount: $200,000
The Company: This Texas-based company operates as a staffing franchise business.
The Issue: Prior to partnering with Allied, the company received financing from their parent company’s traditional bank line of credit. As part of their business strategy, the company was recently spun-off as a separate legal entity. However, with their limited independent operating history combined with their need for a line of credit that could grow as they continue to expand their franchise model, the company needed a new working capital provider who could not only provide a flexible financing arrangement but who could also grow with them to accommodate their expansion needs.
The Solution: This company was referred to Allied by an existing client, and Allied was able to provide them with a facility that fit well within their business model, including a higher advance rate than what their previous bank lender could provide.
The Win: This Funding by Allied will allow this company to focus on their franchising business and to continue expanding their model until they are ready to obtain another form of bank financing.
February 20, 2013
Date Funded: 2/19/13
Facility Amount: $150,000
The Company: This Arizona company is a provider of mobile marketing technology that enables major brands and enterprises to engage consumers via their mobile phones and other smart devices via mass text messages. This company removes the complexity of this communication process involving networks and software through providing a suite of services and technologies.
The Issue: This company needed working capital for a newly received client contract with a large food service company. They only wanted to finance this one contract to support their continued growth.
The Solution: This company was referred to Allied, and Allied was quickly able to establish a credit facility to meet this company’s needs despite the single customer concentration.
The Win: Factoring with Allied will allow this company to smooth out their cash flow fluctuation and enable them to provide more accurate financial forecasts while allowing the company to fulfill this new customer order.
January 14, 2013
Date Funded: 1/11/13
Facility Amount: $8,000,000
The Company: This Virginia company is a value-add procurement supplier that places purchase orders and acts as an agent for the buyer with third party suppliers for products, services, and other items.
The Issue: The company was financed by another factor that recently changed their business model implementing new account management and reporting policies. This change impacted the company’s business model as well as their customer relationships.
The Solution: This company was referred to Joel Flig at Allied, and Allied was quickly able to establish a more flexible credit facility to better meet this company’s needs.
The Win: Allied was able to transform this company’s options by stepping outside of the box and providing a flexible solution that would satisfy the client’s specific business model requirements.
January 9, 2013
Date Funded: 12/28/12
Facility Amount: $700,000
The Company: This New York based company is a designer and manufacturer of ladies sportswear, jackets, pants, shirts, blouses and sweaters. The company distributes to specialty boutiques throughout the United States along with selling to a major retailer.
The Issue: This family owned business experienced declining sales due to the economic downturn. Historically, the company had annual sales of $14 million. Sales for the last two years have run closer to $4 million, which was below the minimum volume requirement for their current retail-focused factoring company.
The Solution: This company was referred to Joel Flig at Allied by a broker. The company chose Allied to replace their current factoring facility which, unlike Allied, included minimum funding requirements. Allied was quickly able to establish a more flexible factoring facility for them.
The Win: This “Funding By Allied” will allow the company to meet their working capital needs while also allowing the owners to focus on new business opportunities to rebuild their sales volume.
January 4, 2013
Date Funded: 12/21/12
Facility Amount: $1,000,000
The Company: This Texas based company recruits engineers for the global telecoms market, working mainly in emerging mobile and data technologies, providing contract resources, permanent placements and managed solutions for every aspect of telecoms engineering.
The Issue: The company had a factoring facility set up with another factor but has primarily relied on the financing of their overseas parent company. The company had been struggling financially since inception, but recently experienced a dramatic growth in sales, tripling their volume in just 5 months. Company management needed a factor who could grow with their increasing sales levels and who also better understood the vendor management industry.
The Solution: This company sought out Allied as their new factoring partner. Allied was able to provide larger funding limits for their customers at a lower cost than their existing financing provider. Allied also has significant experience with vendor management.
The Win: This “Funding By Allied” will provide the company sufficient capital to grow their domestic business at reasonable factoring rates, while also allowing them to repay the sums used to support them throughout the difficult years.
January 2, 2013
Date Funded: 12/17/12
Facility Amount: $300,000
The Company: This Texas company is in the business of custom aircraft interior manufacturing, producing cabinets for business jets while also providing a staffing solution for their customers.
The Issue: Due to this company’s shortage of working capital, they wanted to factor the staffing portion of their receivables which consists of a single customer.
The Solution: This company found Allied as a factoring partner because they knew Allied was able to work with companies with single customer concentrations. Allied was able to establish a factoring facility for them in record time. Only two business days passed from the time the signed proposal was submitted until Allied was ready to fund.
The Win: This “Funding By Allied” will enable the company to better manage their cash flow situation by having the ability to pay their employees timely and have more working capital
October 4, 2012
Date Funded: 10/1/12
Facility Amount: $100,000
The Company: This Texas company provides various communication services, specifically multiple dwelling unit work. This consists of service requests, replacing drops, cable modifications, installation of fiber nodes and various other services. This company began doing work in September directly for a former Allied client.
The Issue: As a start-up company with new contracts that have Net 60 day sales terms, cash flow was an issue.
The Solution: Since this company did not meet many of the requirements needed to obtain a bank line of credit, Allied’s former client knew that factoring with Allied would be a great option for them. They referred the company to Allied, and Allied was quickly able to establish a factoring facility for them. This transaction funded within just four business days of obtaining the majority of the company’s information.
The Win: This “Funding By Allied” will provide the company the start-up capital they need to get this company independently on its feet while also accelerating their cash flow with the longer payment terms offered in their new contracts.