Republic Business Credit partnered with a private equity fund to refinance their existing bank facility and provide more availability on their inventory.
When a private equity owned west coast apparel accessory manufacturer needed more availability and additional liquidity from their loan facility, they choose 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 accounts 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.”
The company manufactures and distributes licensed and branded apparel accessories including bags, wearables, and other wardrobe add-ons. The company typically finds itself in the moderate to premium categories and receives glowing customer reviews through Amazon. The company believes it is very well positioned for the post Covid-19 transition, as they see a lot of upside in both the medium term in their product category. In the short-term, the company sees additional benefit during the virtual world as it allows a better centralization of their inventory and a positive impact on their 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, the company will likely look to expand their relationships with the licensees to addon related category products to the same target customers, thus increasing their wallet share and more repeat purchase opportunities.
Republic provided a $3.0m direct to consumer inventory loan facility that provides significant availability on their inventory, accounts receivables, merchant accounts and ecommerce related proceeds. Republic’s funding refinanced their existing bank facility while providing ample liquidity to enhance their e-commerce strategy. The company believes it will be an unpredictable wholesale revenue year, but are excited about the uptick in orders it has received direct 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, and further added, “We have built our platform to help support companies that need a mix of scalable growth orientated solutions across our asset-based lending, direct to consumer and factoring products.”
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.