Facility Amount: $1,000,000
The Company: This Texas-based company provides precision machining services of component parts primarily to customers in the oil and gas industry.
The Issue: The company has worked with a bank since 2011. They lost money the last few years due to the energy downturn which caused stretch payables with key vendors. Then, their bank was looking to be refinanced by the end of the first quarter. This all occurred at a time when they were receiving new orders for growth through the rest of this year. Their losses combined with this recent growth created a ‘cash crunch’ whereby the company needed a working capital provider to refinance their line of credit, help get vendors paid, and gain access to new capital for additional growth. They needed more than an accounts receivable line of credit.
The Solution: In just a few days, Allied was able to provide funding on the company’s line of credit in time to refinance their bank line of credit by month end and make payroll before Good Friday. To do this, Allied provided a 95% advance on the receivables and a small overadvance to get the first funding completed. To help with their future growth and pay down other obligations, Allied and the company are finalizing the $350,000 real estate loan. This two phased funding will help the company achieve their financial objectives and grow their business.
The Win: This Funding By Allied gave the company the capital they needed to overcome financial hurdles from the last few years and gain access to additional working capital to restructure their balance sheet and grow the business.