Allied Affiliated Funding Provides $400,000 in Receivables Financing to a Natural Gas Consulting Firm – June 1, 2020
Date Funded: 4/27/2020
Facility Amount: $400,000
The Company: This Louisiana-based company provides consultants for the oil and gas industry, primarily focused on water production and operations with well work and light roustabout services. Their consultants oversee their customers’ crews, which helps their customers better manage payroll and related costs. Most of their business is focused currently on natural gas wells.
The Challenge: The Company had recently moved to a lower cost factoring partner. With the onset of COVID-19 and the impact to the general oil and gas marketplace, their new factoring provider pulled their customer credit lines, as they were not as familiar with the energy industry overall. This caused an immediate cash impact to the business by not having sufficient funding for their largest customer.
The Solution: Allied has worked with their largest customer successfully in the past, and that customer referred the company to Allied to help.
The Win: The Funding by Allied gave the company the credit limits they needed during a difficult time in the industry to support their working capital needs so they could cover their payroll and contractors, keep their business going and save them financing fees in the process.