In the Face of the Pandemic: How Allied Supports Businesses Struggling to Make Ends Meet in the Wake of COVID-19
More than 99 percent of all U.S. businesses are small businesses, and these businesses employ about half of the country’s workforce. Most small businesses do not have the cash reserves on hand to weather a storm quite like we’ve seen with the COVID-19 pandemic.
Businesses already struggling to make ends meet have been hit especially hard, many of them shuttering their doors for good. An estimated 100,000 small businesses have been forced to close permanently due to COVID-19.
Keeping small businesses alive by financing their operating expenses is the heartbeat of what we do at Allied. It’s what we did before the pandemic, and what we’re still doing today.
A recent addition to the Allied family is an Ohio-based company with personnel in Texas that contracts with healthcare practices to manage sales of durable medical equipment (DME) including wheelchairs, knee braces, crutches, etc. In 2019, the client partnered with a brace manufacturer to sell their DME products and services to the suppliers’ existing physician base.
Though sales had been relatively flat, the client was on track for positive cash flow and continued growth until the pandemic hit. The postponement of elective and other surgeries resulted in sales plummeting by 50 percent.
Consequently, the client’s bank, which had provided financing to the company since 2011, needed to exit the revolving portion of the facility, to the tune of $1.5 million. The bank referred the client to Allied Affiliated Funding to finance the working capital line while the business works to rebuild their business and recover from the financial concerns related to the COVID-19 pandemic.
Allied’s funding, secured in August, will help the client get back on track, while still having the capital needed to support everyday functions of the company, including payroll and other expenditures. By partnering with Allied, the client now has the breathing room to focus on growing their business in the face of the pandemic. Like many businesses, they are working to identify and develop new virtual methods of sales until the pandemic subsides and travel can resume.
Since funding with Allied, the client has seen an uptick in sales, and we expect to see their sales revenue continue to trend upward until they are bankable again.
Do you have clients needing new funding options? Call us to talk about the options we can offer and our referral program.