There’s no better way to understand how Allied’s factoring solutions might work for you than understanding how they’ve worked for others.
Type of Company: Educational Services
Products or Services Provided: Company specializes in providing high quality supplemental educational services to students in grades K-8 who attend contracted Title 1 schools in the state of Florida. This federally funded educational program is part of the No Child Left Behind Act and provides free, individualized instruction to students in math and reading.
State Located: Florida
The Challenge: The company experienced significant growth but didn’t have the capital/equity to fund the business and no history for the bank to support a line. The company has been in business two years and has its their revenue since last year. The customer needed a $500,000 credit facility to accommodate this growth phase in the business.
The Solution: A business banker in Jacksonville, Florida referred the customer to Allied. Allied provided an initial $500,000 factoring facility. The company is using Allied as a back-up solution provider when it needs funding.
The Win: The customer now has the security of having back-up working capital for the business when needed. The bank has the opportunity to gain the deposit relationship from this prospect and the opportunity to provide other non-credit services. The referring banker also earned a significant closing bonus.
Type of Company: Telecommunications
Products or Services Provided: A telecommunication contractor providing service, installation and maintenance for wireless networks.
State Located: Texas
The Challenge: The company had experienced recent growth but had been behind on payroll taxes from prior years and consequently, had IRS issues.
The Solution: A banker in Plano, Texas, referred the customer to Allied. Allied provided an initial $1,000,000 factoring facility, enabling the company to continue expanding its business. Allied also assisted in setting up a payment plan with the IRS.
The Win: With the assistance of funding from Allied, the company has the working capital available to secure additional contracts, meet growth projections and pay back the IRS without cash constraints. The bank retained the deposit relationship and the opportunity to provide other non-credit services. The bank earns ongoing non-interest income for the life of the deal, while creating a winning solution for one of its customers.
Type of Company: Manufacturing
Products or Services Provided: Manufactures and distributes customized screen-printed t-shirts to big-box retailers.
State Located: Texas
The Challenge: The company had outgrown its $200,000 bank line of credit, with additional orders being received but slower payment trends experienced from its customers. This cash strain required a larger facility that would grow with them.
The Solution: A small business banker in Garland, Texas referred the customer to Allied. We worked with the bank lender to pay off the line of credit and provide a larger working capital facility that would keep up with the surplus in orders and growth of the business, as well as relieve the daily struggle to manage cash and unpaid receivables. Allied provided an initial $1,000,000 factoring facility.
The Win: The banker works closely with Allied to monitor this customer and determine when he/she is ready to return to the bank’s portfolio. Allied’s “bridge lender approach” provides the customer a seamless transition back to the bank because Allied does not charge the customer any exit fees or penalties. The customer now has the working capital needed to grow the business, the bank retained the deposit relationship and the opportunity to provide other non-credit services, and the referring banker earned a significant closing bonus.
Type of Company: Energy Management
Products or Services Provided: Provides systems integration, including HVAC, electrical and other energy control services to national retail and entertainment clients.
State Located: Texas
The Challenge: The company received a large order from one customer with terms of net 60, while the cash flow needs of the business were more demanding, including weekly payroll, material costs and operating expenses. With the increase from this order combined with other anticipated new revenues, the company was unable to obtain traditional financing that would meet its cash flow needs. Further, this increase in the company’s cash flow cycle impacted the available working capital to run the business.
The Solution: A small business banker in Dallas, Texas, referred the customer to Allied. Allied provided an initial $1,000,000 factoring facility. The funding Allied provided allowed the company to continue working with this customer and to receive additional orders, all while managing its cash flow successfully.
The Win: The customer now has the working capital they need to grow the business, the bank retained the deposit relationship and the opportunity to provide other non-credit services, and the referring banker earned a significant closing bonus. Most importantly, the banker and the bank were successful in providing a quick and important financial solution for one of their existing customers.
If your business is positioned for growth, but lacks sufficient funding to realize its full potential, our factoring services are your funding solution. Let Allied Affiliated Funding transform your options.