Date Funded:  4/18/11

Facility Amount:  $500,000

The Company:  This Pennsylvania company is a telecommunications contractor that has been in business since 1986.  Services include Aerial Construction, Pole Placements, Underground Construction, Directional Drilling, Fiber Optic Placement, Fiber Splicing/Proofing, and Coax Splicing.  Although this account has a few construction aspects, the company only bills for completed jobs and does not experience any of the progressive billing or retainage elements of this challenging industry, making it a great fit for Allied.

The Issue:  The company had outgrown their existing bank line of credit and needed working capital to help offset their accounts payable situation which had been created by 50 day payment trends from their primary customer. 

The Solution:  This telecom company was referred to Joel Flig by one of Allied’s referral partners, and Allied was quickly able to establish a $500,000 working capital facility.

The Win:   This “Funding by Allied” will provide some breathing room for this company and will allow them to clean up their stretched accounts payable caused by their primary customer’s longer payment trends.  It will also provide them enough cash flow to meet their working capital obligations, as their bank line of credit was insufficient for their current needs.