Recently, Allied Financial had the pleasure of finalizing a bank workout with a small distributor. The company didn’t have a large enough line of credit – but instead of their large national bank turning them down, the bank referred them to us.
Allied Financial Corporation is always there for small and medium sized businesses who need financial guidance and a working capital line of credit to help grow their company. Learn more about this successful bank workout and how we helped the lighting distributor get the financing they needed to grow and succeed.
Distributing Company Needed Alternate Business Financing Options
A LED lighting distributor was being financed with a small line of credit by a large national bank. The company was growing exponentially, but it needed more than $50,000 line of credit the bank had set up. The guarantors personal credit had deteriorated, the company was losing money and now had a deficit net worth. The banker had to call the loan, requesting a complete payoff in a short time frame.
Looking to borrow against their receivables, the distributor needed $400,000 line of credit and a $50,000 advance against their inventory. Not knowing where to turn, the company went to a Factoring company for help. After discussing the options, the distributor was very concerned about their procedures, including constant follow ups with invoice validity and required checks be made payable to the factoring company from their customers. Because of these concerns, the distributor decided not to go with the Factoring company.
With these requests in the forefront, the company consulted with the banker. Thankfully, he referred them to Allied Financial. This smart move not only kept the small company as a customer, but he also guided them in the right direction for financial assistance.
Banker Continued to Maintain the Relationship Thank to Allied Financial
Allied Financial was able to propose the line of credit for exactly what they needed at the first meeting. Staying in line with our company’s turnaround time, we funded the company and assisted with their working capital needs, all in under 10 days!
Shortly after, the distributor began to grow their revenue significantly. Six months later, they returned to us and requested an increase in their line of credit up to $750,000. Because of the great relationship we’ve developed over time with the company, we immediately approved the request.
We continued to finance the distributor for a year and a half with a successful turnaround. Month after month, the company had consistent profits and returned to a positive net worth, thanks to Allied Financial and the banker’s decision to refer us. The banker recognized the successful performance and approved the deal for the full line of credit. After paying us back, they were most grateful for our services and for helping our mutual client.
In the end, the bank was able to keep the distributor company as a valuable customer, the distributor company received the finances they needed, and Allied Financial gained another respected and appreciative client.
Learn How Allied Financial Can Help Your Business
Allied Financial is all about creating relationships with these businesses who need the right financial direction and line of credit. We have helped countless companies achieve their growing success – do you wish to be one of them? If traditional financing isn’t for you, complete our online form or call 770-730-0101 today to learn more.