This online retailer takes a limited number of pre-orders for each new collection it launches.
This creates both exclusivity and hype while ensuring the business never wastes money on over ordering.
To further keep costs low, they use drop-shipping to send the products straight from the manufacturer to customers.
A typical sales cycle, from placing an order with the manufacturer to customers’ receiving their items, is around three months.
Annual turnover was approaching £2 million, with ambitions to grow to £5 million.
The new CFO wanted to support this growth by making more cash available at any point during the sales cycle to support bigger and more varied stock orders.
We matched the retailer to a stock finance facility of £250k at 2% per 30 days.
This enabled the CFO to draw down funds as needed and only pay interest on the amount withdrawn for the length of one sales cycle - three months.
The business committed to repaying each withdrawal within four months.
Now that they can afford to order more, the business is set to meet its growth target
This wasn't the only time we supported this small business. They also chose to work with Risecap when they had a negative balance sheet but needed funding for marketing and PR activities. Read more >
25 Green Street, Mayfair, London, W1K 7AX
Risecap Ltd (Company no. 11203916) Data Protection Number ZA553906. The registered address is 3rd Floor, 86-90 Paul Street, London EC2A 4NE. Risecap is a credit broker and not a lender.
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25 Green Street London W1K 7AX
Risecap Ltd Data Protection Number ZA553906. The registered address is 85 Great Portland Street, London, England, W1W 7LT. Risecap is a credit broker and not a lender.
Copyright © 2022 Risecap. All rights reserved.
