Allied Financial Funds Company’s Exit from Bank’s Special Asset Group

Some time ago I wrote a blog post entitled “Refinancing a Company Out of a Bank’s Special Asset Group”. The article started with how a company could find itself in the Special Asset area of a bank, included a brief narrative on basic criteria for a commercial finance lender to consider when funding a company out of special assets along with an 8-point Refinancing Strategy blueprint.

The purpose of the article was to point out to companies that a viable exit path out of a bank’s Special Assets/Work Out department is very challenging and complicated, but possible. Further, the most likely scenario for a successful exit from the bank will require the cooperation of all the parties involved including – but limited to – the new lender(s), the existing bank, the owners, friends and family, existing vendors along and with professional support. (Consultants, attorneys, appraisers, accountants)

Case Study on Refinancing a Business out of Special Assets

This team approach proved effective on 12/30/16 when Allied Financial, in conjunction with a new term lender, a financial consulting firm, and legal representation for each of the participating parties, was able to provide funding to a company to facilitate its exit from the Special Asset/Work out department of a bank.

The operating company had a number of issues that caused the bank to request the exit stemming from the company’s unexpected and sudden loss of its key customer that represented over 60{c61718b64a9e60a07104ce2a31bce94bd88c3b635479a52be077496e83618ce2} of the company’s annual revenue. The bank’s Forbearance Agreement had been renewed several times and along the way other alternative lenders attempted but were unsuccessful in completing the transaction.

What Happened to Make the Refinancing Successful

While still running the day-to-day business the principals of the company worked tirelessly and provided additional financial support to the successful refinancing effort. With a committed team effort, the company was not only able to make its exit from the bank but also positioned itself to confidently move forward to increase revenue, regain profitability, and service an increasingly diversified customer base.

Have Questions About Financing for Your Business?

If you are looking for a financing solution for your business, contact Allied Financial Corporation of Delaware Valley by filling out our online contact form of calling us at (856) 481-4790. We offer free financing consultations for B2B businesses interested in assets-based lending solutions to free up more working capital and give your business the tools it needs to grow and prosper.

Allied Financial Corp of Delaware Valley