Republic Provides a $1.75m Non-Recourse Facility for an Apparel Importer
June 8, 2020
June 8, 2020
When a West Coast privately owned apparel manufacturer sought funding for their 2020 summer orders, they choose Republic Business Credit to finance their supplier payments. Republic approved a flexible, scalable and growth orientated facility to supply large retailers with summer style fashion in anticipation of the reopening of stores. Republic provided credit protection on their receivables and concentration limits for approved customers giving the company the comfort to fulfil the purchase orders in the midst of difficult market conditions caused by Covid-19. The company CEO said, “We are excited about showcasing our summer fashion line in time for the reopening of retailers and wanted a factoring partner that could help us fulfil our initial purchase orders.” The Pandemic has caused postponements in order shipment dates and Republic will support the client in the event the current orders are delayed or postponed. Republic Business Credit provides manufacturers with the support to adapt or pivot as the needs of their customers evolve during the staggered reopening.
The company is a distributor of knitted and woven fabric into the apparel manufacturing community. The company typically finds itself selling into US apparel manufacturers across summer women casual fashion, ranging from skirts, jumpsuits, dresses and tops. The company finds its fabric being used across natural, relaxed and form-fitting California casual wear segment. The company is well-positioned for the post Covid-19 store re-openings as they had no debt entering the 2nd quarter of 2020. While the orders are scheduled to ship in June, the company wanted the confidence provided by Republic’s credit protection ensuring they would get paid for the goods no matter what happened over the summer.
Republic provided a $1.75m non-recourse factoring facility with credit protection and extended customer payment terms eligibility to a West coast based apparel importer. Republic’s funding will eliminate the cashflow gap from when their suppliers need to be paid and when they are paid 120 days later for the goods. The company is unsure what the fall season will bring, but it is confident they have a partner during all of the “return to work” stages. Republic’s COO, Matt Begley said, “We believe our factoring and lending products will be even more necessary as states reopen in 2020.” He further added, “we are excited to help all small businesses on the front supply lines of getting summer goods in stores and returning closer to normal lives.” Republic Business Credit provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the United States.
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.