Direct to Consumer Facility for $3.0m provided for Apparel Accessory Manufacturer

Republic Business Credit partnered with a private equity fund to refinance its existing bank facility and provide more availability on their inventory.

NEW ORLEANS (PRWEB) SEPTEMBER 15, 2020

When a private equity-owned west coast apparel accessory manufacturer needed more availability and additional liquidity from their loan facility, they chose Republic Business Credit to accelerate their growth through the pandemic. Republic provided a growth-orientated facility that gives availability on inventory, merchant accounts, and direct to consumer proceeds. The apparel manufacturer welcomed the opportunity to fully leverage their inventory without a restriction or cap in relation to their receivables, as a traditional asset-based loan would structure. The private equity fund operator shared with Republic, “The comfort of having a strategic partner during a recession that is comfortable with our pivot to e-commerce is invaluable. We would reduce shareholder value if our plans were tied solely around a wholesale strategy at the moment.”

CLIENT BACKGROUND

The company manufactures and distributes licensed and branded apparel accessories including bags, wearables, and other wardrobe add-ons. Typically finding itself in the moderate to premium categories, the company receives glowing customer reviews through Amazon. In the post-COVID-19 transition, the company feels it is well-positioned, seeing a lot of upside in their product category. Additionally, for the short-term, the company sees benefits arising from the current ‘virtual world’ as it allows a better centralization of their inventory and a positive impact on supply chains.

Without the just in time demands of a wholesale strategy, the company is better positioned to time launches and partnerships through their eCommerce and direct to consumer offerings. In the longer term, expanding its relationships with the licensees to add-on related category products to the same target customers.  This will increase their wallet share and more repeat purchase opportunities.

SOLUTION

Republic provided a $3.0m direct to consumer inventory loan facility. This facility provides significant availability on their inventory, receivables, merchant accounts, and eCommerce related proceeds. Republic’s funding refinanced its existing bank facility while providing ample liquidity to enhance its e-commerce strategy. The company believes it will be an unpredictable wholesale revenue year. They remain excited about the uptick in orders it has received directly from customers.

“We enjoy partnering with strong equity partners that see value in non-dilutive, growth-supporting, debt financing opportunities,” said Robert Meyers, President of RBC. Adding further, “We support companies that need a mix of scalable growth-orientated solutions. Our solutions can come from across our asset-based lending, direct to consumer and factoring products.”

Republic partners with banks, accountants, sponsors, lawyers, and investment banks to collaboratively support entrepreneurs across the US. Republic looks to create value, by enabling them to focus on growing successful businesses.