Allied Affiliated Funding Provides $300,000 in Receivables Financing to a Lead and Steel-based Manufacturer – May 14, 2020
Date Funded: 4/29/2020
Facility Amount: $300,000
The Company: This Texas-based company manufactures lead-based and steel-based specialty items for the industrial, roofing, plumbing and medical industries. Products include valves, gauges, lead roof flashing, brass fittings, pipe, castings, washers and related items.
The Challenge: The company had been bank-financed since 2017 following an acquisition. The business was impacted by Hurricane Harvey and later by a plant fire. Their bank lender asked the company to find a new financing provider in early 2019. Unable to refinance the debt and with their bank sweeping all collections to their line and providing no working capital, the owner ended up injecting personal funds to manage the business and cover payroll. Realizing that the continued lack of capital availability would continue, the company eventually filed Chapter 11 in mid 2019, and the business has since continued to operate in bankruptcy with limited capital to take on new orders.
The Solution: Once the bank assigned a new workout officer, that banker referred the transaction to Allied to finally provide help! Allied proposed a DIP factoring facility to help with the company’s working capital needs, giving the company the ability to now accept new, larger orders.
The Win: In addition to gaining the ability to accept larger orders and new customers, this Funding by Allied will enable the company to emerge from bankruptcy in the near future. By choosing Allied, the owner has a new path to rebuild his business, maintain employees and get back on track.