Since opening our doors, Allied Financial has helped entrepreneurial companies who were turned down by banks and had seemingly nowhere to turn. Many small businesses have been helped, like a start-up technology company that began with a $200,000 line of credit and grew to a $4 million line of credit. Thanks to our hardworking team, the owner of that company was able to achieve his entrepreneurial dream and sell his company for almost $100 million.
Before Allied Financial was started, our CEO and founder Steven Gold was in a senior position at a national commercial finance company. When the company sold, the new owners decided to change the philosophy of the already successful marketing strategies. The company decided to go in a different direction, and Steven began to think that maybe it was time for him to explore his options as well.
Finding Financing for a Financing Company: A Banker’s Offer
When Steven had the idea of starting his own business, he knew that he would encounter many challenges. The first major challenge that had to be met head-on before ever fully committing to starting his own finance company was… who was going to provide his company with the necessary financing to get the business up and running? This is a question that every start-up finance company must face and, unfortunately, there is not an easy answer.
If your preference is to avoid private equity funds, a bank is generally the first choice. However, from a practical standpoint, it is an uphill battle trying to convince a bank to provide your start-up asset based lending company funding, especially when your company’s entire business model is based on lending money to companies that the banks have already turned down.
Steven was determined to find the right financial partner, but even with his many banking contacts, the challenge was still enormous. After putting together a financial pro forma, he knew the numbers made sense and was confident in the presentation he could offer to a bank. Even still, this was a daunting task and it wasn’t until he was approached by a highly respected banker in Atlanta who knew him very well where things began to change. The banker believed in the venture and offered to finance him if he decided to move forward and start his own shop.
Referral Challenges
Once the question of who was going to provide financing was answered, the next obstacle was the main source of referrals. Over 90{169eece2392127c105803f4d779fa98fc8a34d604aa2c35f50e3ab25ff870daf} of the business comes from banks, so Steven stepped into every bank throughout metro Atlanta and beyond to market his new company. Like so many entrepreneurs, Steven was passionate, hardworking and committed to doing whatever it takes to make his company the best and easiest lender in the market place to work with.
However, he quickly realized that building a new company and renewing a strong reputation of high moral standards was going to take some time. Little did he know that one banker in particular would quickly become his greatest asset and ally and provide the break that every entrepreneur is looking for.
Steven sat with the head of business banking at a national bank to introduce his new company. The banker knew Steven very well and has always enjoyed doing business with him. To Steven’s surprise, as the two of them sat together the banker sent out a mass email to all of his business bankers in his group mentioning Allied Financial was a newly formed asset-based lender that was headed up by Steven Gold. He further said, that while he was sure they all knew Steven, he reinforced his long-term success and relationship and requested that they send all of their turndowns or referrals to Steven and Allied Financial going forward. That moment reassured Steven that this new direction could work.
Overcoming Obstacles to Make a Dream Becomes a Success
Starting Allied Financial brought plenty of risks along with it. Steven had a young family that relied on him financially.
In addition to himself, he was most fortunate and proud to have four other people join Allied right from the start – but that created added pressure to Steven personally since they all relied on him for their livelihood as well.
 |
 |
 |
|---|
Every day seemed to bring a new challenge, some of which could have never been anticipated, but, with the strong commitment of the newly established team, they were always ready to step up. In the first month of business, the Allied team worked diligently to close and fund seven deals with previous clients who had immensely trusted the members of the team in their previous roles at other financing companies.
It now became apparent that, with borrowers and bankers all putting their faith in the team at Allied Financial, this newly formed entrepreneurial finance company was prepared to replicate the growth and success that they have helped so many others achieve.
Schedule a Free Consultation with Allied Financial
There is a reason Allied Financial has remained successful over the years with countless happy clients and thriving small businesses. Our financial strategies, simple processes and transparent approach with our prospects and borrowers result in a winning combination. Our team recognizes that we are the lifeblood for our borrowers and takes tremendous pride in assisting each borrower to support their working capital needs.
Steven had a dream to help small businesses succeed, and because of the amount of help he received from supporters, he was able to achieve it. We apply this inspiration when working with our clients to make their own dreams a reality. Nothing makes our team more excited than watching small businesses and start-up companies prosper while overcoming obstacles.
Has your business been turned down by traditional financing? Contact Allied Financial to schedule a free consultation by filling out our contact form or calling 770-730-0101.