Non-Borrowing Factoring Facility provided by Republic to an Apparel Importer
September 26, 2020
September 26, 2020
LOS ANGELES (PRWEB) SEPTEMBER 17, 2020
When a West Coast family-owned apparel importer wanted credit and collection services, they chose Republic Business Credit to help support their credit decisions during the Covid-19 pandemic. Republic provided a stress-free, credit protection solution that gives comfort for any new orders the company will consider shipping to both major and regional retailers. According to a recent CNBC article, as the pandemic stretches on, the number of retail bankruptcies are quickly approaching the highest number in over a decade. As of early August, over 43 retailers have filed bankruptcy, with many more expected to follow suit before the pandemic is over. Republic believes in the future of retail and is continuing to approve orders for its clients despite what some of the newspapers might refer to as the “end of retail.”
The company has seen a recent increase in shipments for their spring and summer orders and is starting to slot the upcoming holiday season. The company founder said, “The comfort of knowing that we will collect our wholesale receivables provides us the confidence to continue supplying large retailers while increasing our responsiveness to fill orders to established retailers that are reopening in certain core markets.”
The company primarily imports a women’s fashion line in the light, work from home, and leisure categories. They sell unique style dresses, blouses, pants, and loungewear in the medium price segment. The company believes it is well-positioned for the post Pandemic transition having minimal debt and the ability to limit their overhead expenses as an import company, but sees an unpredictable year in terms of revenue and credit worthiness of retailers. The company finally set up its non-borrowing credit facility after many years of conversations in light of everything going around the world. The credit protection allows the company to place an order with its vendors, knowing that they will be able to pay their suppliers assuming the product successfully arrives at the retailer.
Republic Business Credit provided a non-borrowing, traditional factoring facility with credit protection and collection services, with minimal annual volume requirements. Republic provided the credit information to support the decision for which orders to take and which ones to avoid during the recession. The company believes there will be an uptick in volume as the year progresses but it might be unevenly spread across his customer base depending on reopening guidelines.
“We will always support the apparel and consumer packaged goods industry with our traditional factoring product,” said Matthew Begley, COO of Republic, continuing, “We added our direct to consumer and asset-based lending products to support a wider range of businesses cycles throughout the consumer packaged goods community.” Republic provides factoring, asset-based lending, and direct to consumer facilities up to $10,000,000 to businesses throughout the country.
Republic Business Credit partners with banks, accountants, sponsors, lawyers and investment banks to collaboratively support entrepreneurs across the United States, to create value, by enabling them to focus on growing successful businesses.