Pact, an organic cotton apparel brand, forged a transformative partnership with eCapital by way of a $15 million asset-based loan that infused additional liquidity into the borrowing base, comprising 40% of the total loan structure.

Pact was undergoing a transformative shift, redirecting its focus toward a direct-to-consumer e-commerce strategy. This strategic evolution necessitated a financing partner capable of keeping pace while understanding the intricacies of inventory financing. eCapital proved to be the ideal fit, showcasing expertise in inventory valuation and crafting a tailored ABL that aligned with Pact’s evolving needs.

“Our borrowing base is essentially 80% to 90% larger than what it would have been. In my opinion, this creative approach was super helpful, given the way our business is structured, and is also unique to eCapital,” Drew Cook, CFO of Pact, said.