From Losses and Challenges to Growth: A Story of Success – January 3, 2020

When a company experiences a financial loss after changes in their business, securing funding to get back on track to a traditional bank line of credit isn’t always possible. Allied Affiliated Funding, a division of Axiom Bank, N.A., works with companies to provide fast funding so they can focus on attacking business challenges, righting the ship and getting profitability headed back in the right direction. Allied Affiliated Funding offers a bridge back to the bank.

Two years ago, a Texas-based consulting company had experienced a financial loss after winding down one of their business units, while also trying to launch a new service product offering. Their long-time banker was unable to renew their line of credit and referred the company to Allied. We were able to provide an alternative funding solution, with competitive rates and an aggressive credit structure to help with working capital challenges.

Situation Recap:

  • Lost part of their business segment while trying to launch a new service
  • Experienced financial losses
  • Needed to refinance their bank line of credit that would not be renewed
  • Sought funding to support a business focus shift while refinancing their bank line

Allied’s Solution:Allied partnered with the client’s bank to provide a receivables funding line until the client was once again bankable. Over the last two years, Allied worked closely with the company as they formulated and executed their plan to shift the focus of their business to a more profitable sector, while at the same time, cutting and managing expenses.

The company’s management noted it took about 90 to 120 days to start turning the corner and showing a profit. Then, since they had wound down part of their business, they also needed to rebuild sales in their new service offering and help diversify their overall customer base. With Allied’s funding, the owners could focus on growing and rebuilding the business without stressing about their working capital needs. The company was able to attract new customers, diversify their customer base and increase sales at a higher margin.

Throughout the course of the relationship, Allied funded accounts receivables to help cover operating expenses and provided other services, including credit evaluation on new customers, accurate and up to the minute reporting online, and invoice collection assistance when needed. Regarding interactions with invoice status and working with their customers directly, their VP of Finance noted that “Allied was a master in handling situations and keeping the relationship intact.” The additional service offerings by Allied helped lighten the load for the company’s team during a time of personnel changes and growing pains.

While working with Allied, the company continued rebuilding their business and once again became bankable within only a few years.

“If it weren’t for Allied, we wouldn’t be in the same place we are today.”

~Mike R, VP of Finance

Is your business facing challenges such as rapid growth, declining profitability, troubled credit or difficulty funding fundamental business needs like payroll? If so, contact Allied Affiliated Funding today to learn more about our funding solutions. Let us be your company’s bridge to the bank and financial success.

At Allied Affiliated Funding, we regularly partner with bankers to provide a win-win situation for both the bank and its customers. A referral arrangement with Allied allows banks to provide receivables financing or asset-based lending to their customers or prospects who do not otherwise qualify to receive funding. Connect your customers with a fast funding source. Contact Allied Affiliated Funding today.