Business Capital Structures & Secures $2MM Financing Package for Apparel Company
Our Client is an industry leader manufacturing private label, licensed and wholly owned branded apparel for specialty and general retail markets, from small independent surf shops to large nationwide retailers, as well as for direct‐to consumer retail with its own brands. The company provides original, trademarked and highly recognizable private label t‐shirt designs that can be found in specialty surf, resort and outdoor retailers.
Due to a large new custom printing contract, expansion of its retail and e-commerce operations and an increase of sales to retailers in the US and overseas, the Company expected revenues to increase rapidly and required a new line of credit to fund growth. Because of the seasonality of the business and variable needs of retailers, the Company also required financing to accommodate the on-time production and delivery of goods despite significant seasonality and inventory fluctuations.
Business Capital has extensive experience working with seasonal clients, as well as retail and manufacturing, and was able to underwrite all of the variables within the Client’s cash flow situation. The new credit facility was complex, due to the need to obtain distinct lines of credit for each business unit. The financing package structured by Business Capital provided the Company with the up-front capital required for seasonal product release, as well as working capital for off-season operations. This combination will allow the Company to take advantage of favorable pricing and position the Company for increased sales and profitability.