ALLIED AFFILIATED FUNDING PROVIDES $10MM IN RECEIVABLES FINANCING TO LIGHTING COMPANY – DECEMBER 11, 2020
Date Funded: December 11, 2020
Facility Amount: $10,000,000
The Company: This lighting company provides LED and solar lighting products to big box retailers. In response to the COVID-19 global pandemic, the company recently began supplying disposable face masks as well.
Since 2013, the company has been financed by their foreign parent company. In late 2019, the company obtained an inventory finance facility to provide additional working capital.
The Challenge: Prior to current ownership, changes in company leadership resulted in a decline in sales. The current parent company saw great opportunity for synergy between their companies and acquired the lighting company. With the growth in demand for both their traditional products and newer face masks, the company’s sales climbed rapidly, and so did their need for additional working capital.
The Solution: Allied was able to quickly assist in providing an accounts receivable working capital facility that was customized to suit their needs. While most accounts receivable facilities require the client’s customers to make payment to the financier’s lockbox, Allied was able to establish a solution with the referring banker to enable the light company to continue receiving payments at their existing account. Allied also established an intercreditor with the inventory financier to ensure that the lighting company was able to maximize available working capital to support additional growth.
The Win: This funding by Allied provides the company with the working capital needed to support growth in sales of both the company’s primary product, lighting, as well as the increasing demand for face mask production.