Date Funded: 1/6/12
Facility Amount: $5,500,000, including a $1.5M inventory line of credit and a $500K purchase order facility
The Company: This is a privately held corporation based in California that has been in the business of wholesaling health and beauty aid cotton products since 1994.
The Issue: This company is a returning Allied client that originally factored with Allied from 2006 through 2010. They left Allied in 2010 when they obtained a traditional bank line of credit. However, they discovered within a year that factoring was a better fit for their business due to Allied’s more flexible financing structure and entrepreneurial spirit. Allied’s financing does not require any restrictive financial covenants.
The Solution: This client reapproached Allied for financing. In addition to a factoring facility, Allied also provided a $1.5M inventory line of credit and a $500K purchase order facility. Allied’s strong customer service levels, broadened asset based product offerings and flexible financing options encouraged this company to return.
The Win: This “Funding by Allied” will provide the company sufficient working capital to meet their budgeted growth for 2012 while offering less stringent, more flexible terms.