Allied Affiliated Funding, a division of Axiom Bank, N.A. is pleased to announce the following recently closed transactions:

• $1,500,000 in Receivables Financing to a New Jersey-based pet wash manufacturing company that sells primarily dog washing stations to national pet retailers. The company launched in 2019 and was being funded by an affiliated entity. In addition to their limited operating history, the company experienced losses as they initially outsourced some of the manufacturing but then suffered vendor quality challenges. Management brought everything in house afterwards to ensure solid quality standards in the future. The start-up nature of the business, financial losses and new orders coming in the door created a cash flow need that required a financing partner who could help with their immediate working capital needs and growth. The owners approached Allied for help, and we were able to set up a new facility for them quickly that included both domestic and Canadian-based customers. The Funding by Allied helped provide sufficient cash flow for the company to accept new orders, alleviating financial pressure from their affiliated entity. Now, the company can focus on growing the business going forward.

• $300,000 in Debtor-In-Procession Receivables Financing to a Texas-based manufacturer for lead and steel-based specialty items for the industrial, roofing, plumbing and medical industries such as valves, gauges, lead roof flashing, brass fittings, pipe, castings, washers and related items.  The company had been bank financed since 2017 following an acquisition. The business was impacted afterwards from Hurricane Harvey and then later a plant fire, resulting in losses. Their bank lender asked the company to seeking a new financing provider in early 2019. Unable to refinance the debt and with their bank sweeping all collections to their line providing no working capital to the business, the owner ended up injecting personal funds to manage the business and cover payroll. Realizing that the continued lack of capital availability would continue, the company eventually filed Chapter 11 in mid-2019, and the business has continued to operate in bankruptcy since with limited capital to take on new orders. Once the bank assigned a new workout officer, that banker referred the transaction to Allied to finally provide help!  Allied proposed and funded a DIP factoring facility to help with the company’s working capital needs, giving the company the ability to now accept new, larger orders. In addition to gaining the ability to accept these larger orders and new customers, this Funding by Allied will enable the company to emerge from bankruptcy in the near future. By choosing Allied, the owner has a new path to rebuild his business, maintain employees and get back on track.