Allied Affiliated Funding Provides $3,000,000 in Invoice Factoring to Texas Oil & Gas Company – February 20, 2019
Date Funded: 1/16/19
Facility Amount: $3,000,000
The Company: This Texas-based company is a distributor of pipe, valves, fittings and engineered products to the mid-stream energy sector, primarily focusing on energy and petrochemical companies.
The Issue: With the gas growth in 2018, the company continued to build their customer base and revenue. After primarily being self-financed, the company needed funding. They received a proposal from two other bank owned factoring groups, but the owners did not want to provide a personal guaranty for a factoring facility.
The Solution: The company was referred to Allied by one of our referral partners, and Allied was able to offer the company an accounts receivable facility with a limited, validity-only guaranty. The company will continue to build and grow their business and plans to only factor enough invoices for the working capital needed, as Allied does not require all invoices to be financed.
The Win: This Funding By Allied will help this company take on new orders and continue to grow their business. The structure also offers flexibility so they can better manage their working capital and overall cost of capital.